Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q3 2026 were $70.7 million, a decrease of $11.9 million or 14.4% compared to the prior year period [2] - Gross profit decreased by $2.4 million, but gross margin improved to 25.6%, up from 24.8% last year [3] - Operating loss from continuing operations totaled $16.3 million, and net loss from continuing operations was $12.5 million or $1.18 per diluted share [5] - Year-to-date consolidated net sales from continuing operations were $211.1 million, down $22 million or 9.4% compared to the prior year [6] Business Line Data and Key Metrics Changes - Domestic upholstery sales increased by 3% in Q3, while Hooker branded sales were up 1.1% [3] - Hooker Branded net sales increased 1.1% in both Q3 and the nine-month period, driven by higher average selling prices despite lower unit volume [15] - Domestic upholstery gross profit rose $1.5 million for the nine-month period, with gross margin improving by 170 basis points [17] Market Data and Key Metrics Changes - The hospitality business experienced a decline in sales due to the timing of shipments, with several large projects shipping in the previous year's third quarter [3] - Discontinued operations for Pulaski Furniture and Samuel Lawrence Furniture saw combined net sales decline by $11.3 million in Q3 and $22.5 million year-to-date [8] Company Strategy and Development Direction - The company is focusing on exiting low-margin, tariff-sensitive categories and directing efforts towards stronger brands [9] - A new Margaritaville license collection is expected to drive significant organic growth, with initial purchase commitments exceeding historical levels [10] - The company aims to transition from a cost reduction strategy to an organic growth story, emphasizing core expertise in better-to-best home furnishings [12] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic pressures, including elevated housing prices and inflation, continue to impact the business [23] - There is cautious optimism from retail partners regarding demand, but the company is prepared to weather ongoing challenges [46] - The company believes it is better positioned to improve profitability even in a prolonged downturn due to a more efficient cost structure [23] Other Important Information - The company recorded $22.1 million in non-cash impairment charges, which do not affect liquidity or ongoing operations [4] - Cash and cash equivalents decreased to $1.4 million, with $63.8 million in available borrowing capacity at quarter end [18] - A new share repurchase program has been authorized, allowing for the repurchase of up to $5 million of outstanding common shares [19] Q&A Session Summary Question: Impact of shipment timing in hospitality division on sales - Management indicated that the hospitality brand had significant contributions from large hotel projects last year, which did not repeat this quarter [25] Question: Sustainability of sales gains in core business - Management expressed confidence in sustaining sales gains due to product momentum and significant product introductions [26][27] Question: Revenue contribution from discontinued operations - Management acknowledged that discontinued operations were a significant drag on operating income, with further details expected in upcoming filings [30] Question: Margin profile for Margaritaville line - Management suggested that the margin profile could be estimated based on historical Hooker Branded margins [41] Question: Future cost-cutting measures - Management confirmed that additional savings are expected, particularly from the divestiture of brands and exiting high-cost operations [43] Question: Signs of demand recovery - Management noted cautious optimism from partners but did not identify specific green shoots indicating demand recovery [46]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 were $53.2 million, a sequential improvement from $50.7 million in Q1, but a decline from $55.7 million in the prior year period [25] - Consolidated gross profit for the quarter was $5.8 million, or 10.9% of sales, compared to $6 million, or 10.8% of sales in the prior year [25] - SG&A expense for the quarter was $8.7 million, reflecting a 7% improvement compared to the prior year [26] - Loss from operations was $3.5 million for the quarter, an improvement from a loss of $5.4 million in the prior year [26] Business Line Data and Key Metrics Changes - Bedding segment sales for Q2 were $30.8 million, up approximately 10% sequentially and over 2% year-over-year [29] - Gross profit in the bedding segment was $3.1 million, or 10.1% of sales, a 200 basis points improvement from the prior year [30] - Upholstery segment sales for Q2 were $22.4 million, flat sequentially but down approximately 12% year-over-year [30] - Gross profit in the upholstery segment was $3.6 million, or 16.1% of sales, down from $4.3 million, or 16.9% of sales in the prior year [30] Market Data and Key Metrics Changes - The home furnishings industry continues to face significant challenges, with low consumer confidence and high levels of unsold homes impacting sales [6][19] - The bedding market is showing signs of stabilization, with expectations for an increase in unit activity driven by historical product replacement cycles [18][19] - Upholstery business remains impacted by weak consumer sentiment and housing market conditions, particularly affecting lower and middle-income segments [20][21] Company Strategy and Development Direction - The company is focused on winning market share and adjusting its cost structure to achieve profitability in the current market cycle [7] - A comprehensive restructuring project has been completed, expected to yield approximately $11 million in annualized cost savings [12][17] - The integration of the bedding and upholstery divisions aims to create a unified Culp-branded business, enhancing operational efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging demand environment for home furnishings but remains optimistic about the potential for recovery [34] - The company expects steady consolidated sales performance in Q3 and throughout the remainder of fiscal 2026, with higher expectations for the bedding segment [34] - Management emphasizes the importance of maintaining liquidity and managing capital expenditures to prioritize free cash flow [36] Other Important Information - The company has a net debt position of $7.6 million as of the end of Q2, with total cash of $10.7 million [31] - Capital expenditures were only $218,000 for the year-to-date period, reflecting a strategic focus on maintenance projects [33] Q&A Session Summary Question: What is the status of cost savings realization? - Management indicated that significant cost savings are being realized, with the majority expected to be reflected in Q4 [38][40] Question: What is the expected contribution margin from incremental sales growth? - Management stated that there is substantial built-up leverage to capitalize on any increase in sales, with fixed costs in place to retain a significant portion of incremental dollars [42] Question: Can you provide details on the new tariffs? - Management explained that recent tariff changes from Turkey and Haiti have created challenges, but the company is well-positioned to navigate these issues [43][46]

Summary of Key Points from Morgan Stanley Consumer & Retail Conference Industry Overview - The conference focused on the consumer and retail sectors, highlighting key themes such as the K-Economy, social commerce, AI adoption, health and wellness trends, and tariff impacts [1][2][9]. Core Themes and Insights 1. **K-Economy Dynamics** - Consumer-facing industries are experiencing a bifurcated economy, with lower-income segments under spending pressure while higher-income cohorts remain resilient. Companies are cautiously optimistic, focusing on branding, product differentiation, and innovation to sustain demand amid a soft macro environment [5][12]. 2. **Social & Agentic Commerce** - Retail brands are leveraging social platforms and AI to transform shopping experiences. Social commerce is accelerating the path from awareness to transaction, with platforms like TikTok Shop playing a significant role. This shift is redefining engagement strategies and reducing reliance on traditional advertising [5][20]. 3. **AI Adoption** - AI adoption in consumer industries is in early stages but expanding rapidly. Companies are using AI for pricing, supply chain automation, and customer service, leading to productivity gains and cost savings. Most companies are still exploring AI use cases without major structural changes [5][24]. 4. **Health, Wellness, & GLP-1s** - Health and wellness trends are reshaping consumer priorities, influenced by medical innovations and lifestyle changes. The rise of GLP-1 drugs is prompting companies to adapt their offerings to cater to health-conscious consumers [5][32]. 5. **Tariffs and Mitigation Strategies** - Tariffs remain a source of uncertainty, but companies are implementing multi-pronged strategies to protect margins, including supply chain diversification and selective price increases. Strong pricing power has allowed many companies to absorb cost pressures with minimal impact on volume [5][39]. Consumer Health Insights - The health of the US consumer is stable overall, with some softness in lower-income segments due to external pressures like government shutdowns and SNAP payment timing. Higher-income spending remains resilient, supporting holiday performance tracking in line with expectations [8][10]. Company-Specific Insights - **Walmart (WM)**: Positioned well for both good and bad economic times, expanding its target audience to higher-income consumers while maintaining strong e-commerce capabilities [13]. - **Coca-Cola (KO)**: Acknowledged a tough consumer backdrop but emphasized strong execution and revenue growth management strategies [14]. - **Kimberly-Clark (KMB)**: Experienced volume and mix growth by offering premium product features at various price points, focusing on innovation to sustain demand [16]. - **Estee Lauder (EL)**: Noted a positive outlook for US consumers, leveraging social commerce to drive traffic and sales [20]. - **Peloton (PTON)**: Aiming to become a total wellness provider, expanding offerings in mental health and nutrition in response to consumer needs [34]. Market Sentiment and Future Outlook - Companies expressed cautious optimism for 2026, anticipating a steadier environment as tariff-driven inflation fades. However, the overall sentiment is more tempered compared to previous years, with many expecting stable demand trends and balanced margin expectations [51][52]. Key Questions Addressed - **Consumer Demand**: 74% of companies expect stable demand over the next 12 months, with only 22% anticipating acceleration [53]. - **Margin Expectations**: Margin outlook is evenly split between tailwinds, balance, and headwinds, contrasting with last year's overwhelmingly positive outlook [57]. - **Technology Investment**: 100% of companies expect technology investment levels to either rise or remain stable in the coming year [61]. This summary encapsulates the key themes and insights from the Morgan Stanley Consumer & Retail Conference, providing a comprehensive overview of the current landscape and future expectations in the consumer sector.

Core Insights - Yoolax is launching Smart Shades that combine festive warmth, modern elegance, and hands-free functionality, enhancing home comfort during the holiday season [1][5][25] - The Smart Shades are designed to provide energy efficiency, privacy, and light control, making them a practical upgrade for homes year-round [2][17] Product Features - Yoolax Smart Shades can be controlled via voice commands or a mobile app, allowing for hands-free operation, which is particularly useful during busy holiday moments [6][20] - The shades are available in various styles, including motorized Roman shades and dual roller shades, catering to different aesthetic and functional needs [12][17][21] - The honeycomb design of the shades offers thermal insulation, UV protection, and sound absorption, contributing to a cozy home environment [23][25] Usage Scenarios - The Smart Shades are versatile and suitable for all areas of the home, enhancing the ambiance in living rooms, dining areas, and bedrooms [8][9] - They can be easily integrated into holiday decor, creating a festive atmosphere while maintaining a sleek, modern look [3][9] Target Audience - Families and individuals looking for convenient, stylish home upgrades will benefit from the hands-free capabilities of Yoolax Smart Shades, making them ideal for busy lifestyles [7][11]

IKEA has finally landed in New Zealand, sparking flat-pack fever, soul-searching about national identity and a debate over global sameness. Read more: https://t.co/U3PSBSfAap📷️: Phil Walter/Getty Images https://t.co/Og8soMQ2jw ...

Core Viewpoint - RH, the high-end home furnishings company, has faced significant challenges in 2025, primarily due to a sluggish housing market and increased tariffs, leading to a nearly 60% decline in stock value this year [2][3][11] Group 1: Stock Performance - The stock has experienced multiple boom-and-bust cycles over the past decade, with a notable downturn in 2025 as the housing market hit a 30-year low [2] - Despite the stock's poor performance, RH reported an 8.4% revenue growth in the second quarter of 2025, indicating solid operational performance [5] - The stock is currently trading at $161.39, with a market capitalization of $3 billion, and has a gross margin of 44.65% [9] Group 2: Housing Market Impact - The housing market's decline has significantly impacted RH's business, with CEO Gary Friedman stating it is operating in "the worst housing market in almost 50 years" [7] - There is uncertainty regarding the housing market's recovery in 2026, although a potential decrease in interest rates could improve mortgage affordability [7][8] Group 3: European Expansion - RH is actively expanding into Europe, having opened several galleries, including RH Paris, and plans to open more in marquee markets like London and Milan in 2026 [9][10] - The company anticipates that its European and Middle Eastern expansion could double its business size within the next five to seven years [10] Group 4: Future Outlook - The stock may be undervalued following the sell-off in 2025, and if the company can deliver on its growth strategies and the macroeconomic environment improves, a recovery in 2026 is possible [11]

PresentationSimeon GutmanMorgan Stanley, Research Division All right. We're in business. Hi, everyone. Good morning. It's Simeon Gutman of Morgan Stanley's hardline, broadline and food retail analyst. Welcome to day 1 of our Global Consumer and Retail Conference. I'm pleased to introduce Arhaus represented by Michael Lee, CFO. It's an interesting crossroads with a housing home improvement, home furnishings world that is stagnant, but starting to show some signs of life. This is an eclectic growth story with ...

Summary of Arhaus Conference Call Company Overview - **Company**: Arhaus - **Industry**: Home Furnishings - **CFO**: Michael Lee - Arhaus is positioned as a high-end, high-growth furnishings brand with a resilient business model and an affluent client base. The company designs nearly all products in-house and has exclusive offerings, with over 90% of products not available elsewhere, enhancing the shopping experience [4][5][6]. Core Business Insights - **Client Engagement**: Arhaus clients are affluent, design-forward, and prioritize quality and long-term investment. The company has seen healthy demand, with positive engagement levels [4][5]. - **Interior Design Services**: The provision of free interior designers significantly boosts order values, with transactions involving designers averaging four times higher than those without [5]. - **Omnichannel Strategy**: Arhaus operates over 100 showrooms in the U.S., alongside e-commerce and in-home design programs, with a growing trade business [5][6]. Financial Performance - **Q3 Performance**: Demand indicators showed a 15.7% increase in July, with September achieving record sales during the store-wide sale. However, October saw a decline of approximately 14.8% due to seasonal factors and strategic promotional adjustments [17][19][27][30]. - **Year-to-Date Growth**: Comparable demand through Q3 was up 2.8%, reflecting a seesaw effect in sales throughout the year [26]. Market Dynamics - **Housing Market Impact**: While housing turnover is expected to be a tailwind for growth, Arhaus's affluent clientele is less affected by housing market fluctuations. The company continues to see strong demand driven by home renovations and replacements [35][36][38]. - **Customization and Product Innovation**: Arhaus emphasizes customization, offering over 600 fabric options and 90 leather choices, with a six-week turnaround for custom orders. The company is also focused on introducing new products to maintain consumer interest [20][38]. Digital Transformation and AI - **Investment in Technology**: Arhaus is undergoing a $30 million digital transformation to modernize its technology stack, which includes ERP and order management systems. This initiative aims to improve operational efficiency and customer experience [49][52][56]. - **AI Integration**: AI is being utilized to enhance customer experiences and streamline operations, with a focus on personalized product recommendations and efficient project management [48][50]. Tariff Management - **Tariff Impact**: The company anticipates a $50-$60 million impact from tariffs in 2026 but has implemented pricing strategies and sourcing changes to mitigate these effects. Arhaus has successfully maintained margins despite tariff pressures [70][73][75]. B2B Growth Strategy - **Trade and Contract Business**: Arhaus sees significant growth potential in the B2B sector, particularly through trade channels and contract business for furnishing commercial spaces. The company is investing in technology and new programs to enhance its trade offerings [77][78]. Conclusion - Arhaus is positioned for growth with a strong focus on customer engagement, product innovation, and digital transformation. The company is navigating challenges in the macroeconomic environment while maintaining a positive outlook for future performance [30][36][79].

Bed Bath & Beyond, Inc. (NYSE:BBBY) shares traded higher on Tuesday after the retailer unveiled new deal plans.Bed Bath & Beyond agreed to acquire The Brand House Collective, Inc. (NASDAQ:TBHC) in an all-stock transaction valuing the target at about $26.8 million, using Nov. 21 closing prices.The agreement gives Brand House investors 0.1993 Bed Bath & Beyond shares for each Brand House share.Also Read: Jim Cramer: This Tech Stock Is ‘Losing Too Much Money', Recommends Buying Mettler-ToledoThat exchange rati ...

Group 1 - Williams-Sonoma, Inc. reported strong earnings, beating both top and bottom-line expectations, which initially caused the stock to rise over 4% before it ultimately finished in the red due to concerns over potential tariff impacts [1] - The company is recognized for its diverse product offerings, including cookware, home furnishings, and decor, under various brands such as Williams Sonoma, Pottery Barn, and West Elm [2] - CEO Laura Alber is noted for her effective leadership and has embraced Salesforce's strategies, which may influence the company's future performance [2] Group 2 - Despite the positive earnings report, there is skepticism about the stock's ability to rally, with some analysts suggesting that other AI stocks may present better investment opportunities with less risk [2]