The return of better days for home furnishings retail will be delayed. Once again.
After another quarter of lackluster results from national chains, it is clear that a return to good times will have to wait at least until the next earnings report.

Large publicly traded companies like Arhaus, Ethan Allen, Bed Bath & Beyond (formerly Overstock) and Floor & Decor, as well as online giant Wayfair, all reported dismal results in the last ten days. And while results from major players like RH and Williams-Sonoma are still pending, their recent numbers were pretty much in line with what we saw just this month.

If there is any silver lining to the recent news, it is that the financial declines appear to have been less severe. While there have still been some double-digit sales declines, most of these retailers have performed worse during the downturn of the past 12 to 18 months. While this is only a small rescue, the way things are going, most companies will take it.

At the risk of repeating myself here, the reasons for these declines are known to virtually everyone in the industry: Demand is still low after the pandemic-induced boom a few years ago. The stagnant housing market means fewer people are furnishing their new homes. Inflation has caused a severe price shock for consumers. And while there is a lot of money being spent, it is going towards cruises, restaurants, clothing stores and Taylor Swift tickets.

Those are the causes. And in terms of impact, some of the larger listed companies fared well last quarter.

Arhaus: The company’s just-released second quarter showed a 7.1 percent drop in sales to $310 million, below analysts’ estimates. The bottom line was also disappointing, and Arhaus lowered its forecast for the full fiscal year. Wall Street was not happy: the company’s share price plummeted by almost 18 percent in trading on Thursday morning.

Ethan Allen: Sales in the fourth quarter fell 10 percent to $169 million, and both profit and margins declined. For the full year, net sales fell 18 percent, and the bottom line was no better. The company was able to avoid a major drop in its share price – which still fell 2.3 percent in the reporting week – in part by announcing a special dividend.

Wayfair: The online giant posted one of its smaller revenue declines of 1.7 percent in the quarter, narrowing its year-on-year loss by 8.7 percent. It remained optimistic about its growth, forecasting 4.9 percent growth over the next three years. Investors weren’t thrilled, though, and the company’s share price fell 14 percent the week of the earnings release.

Bed Bath furthermore: The two companies’ results are not broken down, but the company’s revenue is down 5.7 percent from a year ago (before the BBB acquisition) and it continues to make losses at 93 cents per share. The share price lost about 3 percent in the reporting week.

Haverty: The Southeastern furniture chain has been one of the hardest hit in recent years. And this trend has continued: Sales fell by 13 percent to $179 million and profits shrank by almost two-thirds. The share price recorded a small increase in the week of the announcement, but has been down 22 percent since the beginning of the year.

The container store: Although the chain is turning around under its new CEO, it is reporting a 14 percent drop in sales compared to last year and an even bigger loss — 30 cents per share. After soaring just before the earnings announcement, the company’s stock price had risen about 9 percent for the week, but has fallen 62 percent since the start of the year.

Floor & Decor: Another retailer that failed to meet analysts’ forecasts reported a small 0.2 percent drop in sales but a 21 percent drop in net profit. Investors seemed pleased with this development, with the stock up nearly 9 percent for the week.

Big lots: The furniture retailer did not release any new figures, but announced that it would close more than 300 stores. Wall Street welcomed the move with a 5 percent jump in shares this week. Nevertheless, the company has recorded one of its biggest losses since the beginning of the year, a drop of over 88 percent.

So, at least so far, the quarter has been a bad one across the board. The Federal Reserve’s announcement of a rate cut in September offers a glimmer of hope on the horizon. But the truth is that no one knows how long this downturn will really last.

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Warren Shoulberg is a former editor-in-chief of several leading B2B publications. He has been a visiting lecturer at Columbia University Graduate School of Business, received awards from the International Furnishings and Design Association and the Fashion Institute of Technology, and has been cited by Wall Street Journal, New York Times, Washington Post, CNN and other media as a leading industry expert. His columns in Retail Watch offer deep insights into the most important markets and product categories.