Core Insights - The Lovesac Company has appointed Alan Boehme to its Board of Directors, effective August 27, 2025, enhancing its leadership with expertise in digital transformation and technology-enabled growth [1][2]. Company Overview - The Lovesac Company, based in Stamford, Connecticut, is known for its innovative furniture products, particularly the Sactionals, which are marketed as "The World's Most Adaptable Couch" [1][4]. - The company focuses on a "Designed for Life" approach, creating high-quality, modular furniture that is built to last and evolve with customer needs [4]. - Lovesac's product range includes Sactionals, Sactionals Reclining seats, premium foam beanbag chairs (Sacs), the PillowSac™ Chair, StealthTech home theater systems, and EverCouch™ [4]. Leadership and Expertise - Alan Boehme brings over 30 years of experience in consumer goods, retail, and manufacturing, having held significant roles such as CIO and CTO at major brands like H&M Group, Procter & Gamble, and The Coca-Cola Company [2][3]. - His current role as Founder & President of Technology Transformation Group Inc. involves advising companies on technology strategy and operational efficiency, further enhancing his value to Lovesac [3]. - Boehme's expertise includes AI, cybersecurity, and retail technology, aligning with Lovesac's innovative model and long-term growth objectives [2][3]. Awards and Recognition - Lovesac has received accolades such as Repreve's 8th Annual Champions of Sustainability Award and Edison Awards' 38th Annual Best New Product Awards for Sustainable Consumer Products, highlighting its commitment to responsible production and innovation [4]. Sales and Marketing Strategy - The company primarily markets and sells its products online through its website, supported by physical retail locations including branded showrooms and partnerships with third-party retailers [4].

Industry Analysis & National Security Concerns - The potential wiping out of domestic industries due to cheaper overseas manufacturing raises national security concerns, particularly regarding supply chain risks [1][2] - Tariffs are considered as a tool to prevent other countries from dumping steel or aluminum, and to encourage domestic production of essential goods like rare earth minerals and semiconductors [2][3] - The American furniture industry's decline is attributed to high manufacturing costs, leading manufacturers to move production overseas [4] Furniture Market Dynamics - Wayfair's furniture is cheap and good enough, with tariffs potentially only increasing prices without bringing manufacturing back [6] - High-quality furniture makers like William Sonoma and RH face difficulty finding skilled workers in the US [7] - Ethan Allen manufactures approximately 75% of its furniture in the US, potentially benefiting from tariffs [8] Economic & Policy Implications - The trade-off between domestic jobs and cheaper goods through globalization is acknowledged [4] - The revival of American furniture manufacturing is viewed skeptically, with doubts about its cost-effectiveness and impact on national security [7][8] - Nostalgia for past manufacturing glory is not a viable policy [9]

Core Viewpoint - La-Z-Boy (LZB) is currently rated as a Zacks Rank 5 (Strong Sell) due to a recent earnings miss and subsequent stock sell-off [1] Company Overview - La-Z-Boy, Inc. is involved in the production, manufacturing, and distribution of residential furniture, operating through Wholesale, Retail, and Corporate and Other segments [2] - The Wholesale segment manufactures and imports various upholstered furniture, while the Retail segment sells these products directly to consumers through company-owned stores [2] Earnings History - The company has beaten the Zacks Consensus Estimate in two of the last four quarters and missed in two, which does not solely determine its Zacks Rank [4] - The most recent quarter reported an EPS of $0.47, missing the consensus estimate of $0.53 by 6 cents, resulting in a negative earnings surprise of 11.3% [5] Earnings Estimates - Recent earnings estimates for La-Z-Boy have been revised downward, with the current fiscal year consensus dropping from $3.20 to $2.86 and the next fiscal year from $3.44 to $2.75 over the last 60 days [6] - The negative movement in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6] Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [7]

Trade & Tariff - U S furniture sellers may face more tariffs [1]

Manufacturing & Supply Chain - Ethan Allen manufactures approximately 45% of its products in the US and 75% in North America [1][4] - The company also has manufacturing operations in Mexico and Honduras [1][3] - Ethan Allen's Mexican manufacturing benefits from the USMCA trade agreement, potentially shielding it from tariffs faced by competitors [1] - Maintaining a consistent level of quality across all manufacturing locations, including Mexico and Honduras, is crucial [6] Business Strategy & Brand - Ethan Allen has repositioned its business over the past 20-25 years, reducing the number of manufacturing plants, distribution centers, and retail service centers [2][3] - The company emphasizes its brand promise of classic American furniture and its US-based heritage [4] - Ethan Allen focuses on providing the right products, service, and quality, which are considered more important than just price [5] Market & Economic Factors - Consumer concern over economic conditions and interest rates is acknowledged as a potential impact on the business [7][8][9] - Ethan Allen's strong interior design network and customer relationships help to mitigate the impact of economic concerns [8]

Core Viewpoint - The luxury furniture brand RH experienced a decline in stock prices due to President Trump's announcement of potential furniture-specific tariffs, overshadowing previous gains from favorable economic signals [1][2]. Group 1: Stock Performance - RH's shares fell as much as 10% before recovering to a 5% loss on Monday following Trump's tariff announcement [1]. - The stock had previously gained after Federal Reserve Chair Jay Powell hinted at possible interest rate cuts [1]. Group 2: Tariff Implications - Trump announced a major tariff investigation on furniture imports, with results expected in 50 days, potentially leading to new tariffs on furniture from various countries [3]. - Current tariffs on China are around 55%, while those on Vietnam are 20%, raising concerns for furniture makers like RH that have significant exposure to these markets [3]. Group 3: Company Operations - In 2024, RH sourced only 10% of its furniture from the U.S., with the remaining 90% coming from Vietnam, China, Europe, Indonesia, and India [4]. - The company had been recovering, with a 12% revenue increase in the recent quarter, but this was from a low base due to a depressed housing market [5]. Group 4: Market Outlook - New tariffs could hinder RH's recovery, although the company may have the ability to raise prices as a premium manufacturer if lower interest rates stimulate housing demand [5]. - However, if demand remains weak, RH may face pressure to cut prices, impacting profit margins [5].

Speaking of which, let's get to Megan Cassella with the latest out of Washington on those tariffs. Hey, Megan. >> Hey guys, good morning.That's absolutely right. The latest industry really under fire here from this White House talking about new tariffs. All of that new talk stemming from a true social post that the president posted late on Friday in which he said he was pleased to announce that we are doing a major tariff investigation on furniture coming into the United States.He said within the next 50 da ...

Market Trends - Furniture stocks experienced a plunge following Trump's call for a tariff probe [1] News Source - Bloomberg Stock Movers report provides details on the furniture stock plunge [1]

Group 1 - Atour Lifestyle Holdings Limited (ATAT) is a China-based lifestyle brands and hotel company with a current year earnings estimate revised 1.9% downward over the last 60 days [1] - La-Z-Boy Incorporated (LZB) is a furniture company that has seen its current year earnings estimate revised 10.6% downward over the last 60 days [1] - Primo Brands Corporation (PRMB) is a beverage company with a current year earnings estimate revised 14.4% downward over the last 60 days [2]

Company Overview - La-Z-Boy Inc., a Michigan-based furniture manufacturer, is expanding following a recent acquisition in the southeast, which is expected to close in October [7] - The company reported a mixed fiscal first quarter 2026, with total sales declining 1% year-over-year to $492 million, driven by a 5% increase in retail sales but only a 1% improvement in wholesale sales [4][5] Financial Performance - Adjusted operating margin narrowed to 4.8% from 6.6% a year prior, and adjusted earnings per share dropped 24% to $0.47, below the $0.53 analyst consensus [5] - Cash flow from operations totaled $36 million, with $22 million returned to shareholders through dividends and buybacks [5] Market Position and Strategy - La-Z-Boy's retail division consists of nearly 210 company-owned stores and is part of a broader network of nearly 370 stores, including Joybird, which has 14 stores in the U.S. [6] - The company is balancing optimism in long-term industry fundamentals with a pragmatic approach to current consumer demand, as stated by CEO Melinda Whittington [9] Industry Context - The Trump administration has launched an investigation into imported furniture, potentially leading to new tariffs, which may not significantly impact La-Z-Boy due to its U.S.-based manufacturing [10][11] - The U.S. furniture industry is facing challenges, with companies like Wayfair experiencing weakened demand for big-ticket items amid a slower housing market [12]