Shares of furniture retailers tumbled after President Donald Trump announced that the US will enact new tariffs on imported kitchen cabinets, bathroom vanities and other home products next week https://t.co/oZY0JipnIS ...

Core Viewpoint - The U.S. will impose significant tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture, indicating a shift in trade policy that could impact related industries and companies involved in manufacturing and importing these goods [1] Group 1: Tariff Details - A 50% tariff will be imposed on kitchen cabinets and bathroom vanities, which may lead to increased costs for consumers and potential supply chain disruptions [1] - A 30% levy will be applied to upholstered furniture, further escalating import costs and potentially affecting retail pricing strategies [1]

Core Insights - The latest U.S. tariffs on imported kitchen cabinets, bathroom vanities, and upholstered furniture have led Chinese vendors in Lecong to largely abandon the U.S. market, indicating a significant shift in their business strategy [1][2][3] Industry Overview - Lecong, known as China's "Furniture Kingdom," features over 180 furniture malls filled with retailers, wholesalers, and distributors, showcasing a wide range of products from plywood tables to plush leather sofas [4] - The town has a historical significance as the earliest furniture market in China, catering to international customers for over 30 years, particularly in the higher-margin European and North American markets [5] Market Challenges - Geopolitical tensions, tariffs, and rising labor and production costs have adversely affected Chinese manufacturers, forcing them to adapt to survive in a challenging environment [6] - The domestic market is experiencing weak consumption due to an economic downturn and a slump in the property market, impacting overall sales [6] Business Adjustments - Companies like Hansen Outdoor Furniture have reduced their workforce significantly and shifted their sales focus, with 60% of products now sold domestically and 40% overseas, primarily to India and Africa [6] - Hanfei Furniture reported average business performance this year, with a notable impact from last year's tariff increases leading to order cancellations from American clients [7] Competitive Landscape - The furniture industry is facing increased competition and a smaller market size, but manufacturers express confidence in their ability to survive despite the challenges [8]

Core Viewpoint - MillerKnoll, Inc. (NASDAQ: MLKN) was rated as a Buy in June 2025 when the stock was trading at approximately $17.22, and it has since experienced a rally in its stock price [1]. Company Summary - The stock of MillerKnoll, Inc. has shown positive performance since the initial Buy rating was given [1]. - The investment strategy employed focuses on strategic buying opportunities, particularly in dividend and value stocks, which has contributed to a high rating on Tipranks.com [1]. Analyst Background - The analyst has a strong following on Seeking Alpha, with over 9,000 followers, and has achieved a near 5-star rating based on investment performance [1].

Core Insights - Alsara Investment Group, led by Rachid Mohamed Rachid, has acquired the Italian luxury furniture firm Giorgetti Group, indicating a strategic move into the Italian design sector [1][2]. Company Overview - Giorgetti Group was acquired by a consortium led by Solida Capital, which includes Alsara Investment Group and Vivium, both based in Dubai [2]. - The acquisition marks a shift from Italian private equity group Progressio SGR, which had managed Giorgetti since 2015 [4]. Strategic Intent - The managing director of Alsara Investment Group, Alia Rachid, expressed intentions to expand within the Italian design sector, focusing on luxury furniture brands based in Milan [3][4]. - The company aims to leverage global talent to enhance the brand's growth and international presence [4]. Management and Operations - Giorgetti's entire management team will remain in place post-acquisition, with Solida Capital and Vivium joining the new board of directors [5]. - Giorgetti has a retail presence that spans from Boston and Washington, D.C., to Doha, Qatar, with plans to open a new location in Dubai through Vivium [6]. Financial Performance - Giorgetti has experienced significant growth, doubling its sales over the past decade, and is poised to strengthen its identity with the new corporate structure [7].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Consumer Retail in North America - **Focus**: Impact of tariffs on various consumer goods categories, particularly New Vehicles, Auto Parts, and Home Improvement [1][2][3] Core Insights - **Tariff Increases**: Monthly tariff levies have surged from approximately $6 billion in February 2025 to $28 billion by July 2025, resulting in an effective tariff rate increase from ~2% to ~10% [3][12][21] - **Category Analysis**: - New Vehicles are projected to experience the highest inflationary pressure, with expected increases of +MSD% to +HSD% by year-end [2][9] - Auto Parts and Home Improvement are more resilient, with an estimated inflationary impact of around 4% [2][9] - **Effective Tariff Rates**: The effective tariff rate for the top six imported goods categories has risen to ~13% as of July 2025, up from ~4% in February 2025 [4][12] Detailed Category Insights - **New Vehicles & Parts**: - Most vulnerable to demand destruction, with an unmitigated tariff impact of ~7% of retail value [5][16] - Effective tariff rate increased to 17% from 1% in 2024 [16][56] - **Aftermarket Auto Parts**: - Experienced a fourfold increase in tariff costs, with a current monthly run-rate of ~$1.6 billion and an effective tariff rate of ~18% [60][64] - Anticipated retail price increases in the low- to mid-single-digit range [61][68] - **Apparel & Accessories**: - Effective tariff rates have nearly doubled to 25% from 14%, with a monthly run-rate of ~$2.3 billion [67][70] - Companies are implementing selective price increases to manage costs without significantly impacting demand [77] Additional Important Insights - **Tariff Exemptions**: Approximately 75% of total imported goods are shielded from tariffs, with only ~25% subject to duties as of July 2025 [27] - **Legal Uncertainty**: Ongoing legal challenges to tariff policies may affect future tariff implementations and market dynamics [31] - **Market Behavior**: Companies are expected to maintain rational pricing strategies in response to tariff impacts, with a focus on vendor negotiations and sourcing diversification [68][69] Conclusion - The consumer retail sector in North America is facing significant challenges due to rising tariffs, particularly in the New Vehicles category, while other categories like Auto Parts and Home Improvement show resilience. Companies are actively seeking strategies to mitigate the impact of these tariffs through pricing adjustments and vendor collaborations. The evolving legal landscape surrounding tariffs adds an additional layer of uncertainty for market participants [1][31][68]

Core Insights - MillerKnoll Inc. reported fiscal first-quarter results that exceeded expectations, with revenue of $955.7 million, a 7.5% year-over-year increase, and adjusted earnings per share of $0.45, surpassing the anticipated $0.34 [1][2] Financial Performance - The company's revenue growth was supported across various business segments, continuing the momentum from the previous quarter's 8.2% sales increase [2] - For the second quarter, MillerKnoll guided revenue expectations between $926 million and $966 million, slightly below the consensus of $960.7 million, while adjusted EPS is forecasted to be between $0.38 and $0.44, compared to the analyst expectation of $0.41 [2]

分组1 - MillerKnoll reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.36 per share a year ago, representing an earnings surprise of +28.57% [1] - The company achieved revenues of $955.7 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 4.60%, and an increase from $861.5 million year-over-year [2] - Over the last four quarters, MillerKnoll has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 11.9% since the beginning of the year, while the S&P 500 gained 13.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $970.35 million, and for the current fiscal year, it is $1.81 on revenues of $3.79 billion [7] - The Zacks Industry Rank indicates that the Furniture industry is currently in the bottom 18% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $956 million for Q1, representing a growth of 10.9% year-over-year and 10% on an organic basis [12][13] - Adjusted earnings per share (EPS) increased by 25% to $0.45, significantly outperforming guidance [12] - Consolidated gross margin for Q1 was 38.5%, impacted by approximately $8 million in net tariff-related costs [14][15] Business Line Data and Key Metrics Changes - North America Contract segment net sales were $534 million, up 12% year-over-year, with new orders down 8% [15][16] - International Contract segment net sales improved to $168 million, up 14.4% reported and 11.3% organically, with new orders down 6.5% [16][17] - Global Retail segment net sales were $254 million, up 6.4% reported and 4.9% organically, with new orders up 1.7% [17][18] Market Data and Key Metrics Changes - Office leasing activity for Class A space remains robust, with Manhattan leasing activity in August exceeding the 10-year monthly average [7] - Web traffic in North America increased by 17% year-over-year, indicating strong customer engagement [9] Company Strategy and Development Direction - The company is focusing on accelerated product creation, consistent execution, and prudent cost management while investing for profitable growth [6] - Plans to open 12-15 new stores in the U.S. for the fiscal year, aiming to double the store footprint over the next several years [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum in the contract business, with improving conditions in key markets [7] - The company anticipates that pricing actions will offset tariff impacts in the second half of the fiscal year [19][20] Other Important Information - The company has refinanced its Term Loan B to extend maturity to 2032, ending the quarter with $481 million in liquidity [15] - The company was recognized as a great workplace for innovators, reflecting its commitment to employee engagement [11] Q&A Session Summary Question: Normalization of growth in the Americas - Management confirmed that North America Contract has averaged 3.3% growth over the trailing two quarters, with volume being a key driver [26][27] Question: Discounting trends - Management indicated that discounting has remained stable and has not increased [31] Question: Retail profitability pressures - Management noted that new store expenses are the primary driver of margin degradation, with expectations for revenue from new stores to mitigate this impact by the end of Q4 [32][33] Question: Impact of tariffs - Management clarified that the $8 million net tariff-related impact reflects both costs and mitigation efforts, with expectations for reduced impact in Q2 [46][47] Question: Industry consolidation and competitive outlook - Management views industry consolidation positively, presenting opportunities for growth and differentiation [40][41] Question: International market performance - Management acknowledged slower recovery in international markets but noted growth in direct-to-consumer channels [42][43]

Investor Presentation First Quarter FY26 NASDAQ: MLKN Forward looking statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include those relating to future events, anticipated results of operations, our expectations regarding future market conditions, our business strategies, our assessment of risks we face, and other aspects of our operations or oper ...