The president this morning threatening quote substantial tariffs on any country that doesn't make its furniture in the United States. It comes just days after he announced plans to impose a 30% tariff on upholstered furniture and a 50% tariff on all kitchen cabinets and bathroom vanities. Our next guest is a major player in the furniture industry.Joins us this morning with his outlook. Let's bring in Ethan Allen, CEO for Rukqari. We should note the company's market cap is $736 million.We love having you in ...

Group 1 - U.S. President Donald Trump announced tariffs of up to 50% on imported furniture, including a 50% tariff on kitchen cabinets and vanities, and a 30% tariff on upholstered furniture, effective October 1 [1][2] - The tariffs are expected to complicate pricing strategies for companies in the furniture industry, as they heavily rely on imports from countries like China, Mexico, and Vietnam, raising concerns about the lack of domestic manufacturing capacity [2] - Executives from major companies such as Williams-Sonoma and RH have expressed worries during earnings calls regarding the impact of higher tariffs on their operations and pricing [3]

Tariffs and Trade Policy - The US is imposing a 100% tariff on branded or patented pharmaceutical products entering the country, starting October 1st, with exemptions for companies building drug manufacturing plants in the US [1][2] - A 25% tariff will be imposed on imported heavy trucks, also starting on October 1st [2] - New tariffs on kitchen supplies and furniture include 50% on kitchen cabinets, bathroom vanities, and associated products, and 30% on upholstered furniture, all starting October 1st [3] - Section 232 investigations are initiated on imports of robotics, industrial machinery, and medical devices, potentially leading to tariffs on these products [3] Economic Impact and Reactions - The trade war has caused a drop in Chinese purchases of American soybeans, leading to a mechanism to transfer tariff dollars to American farmers to offset the impact [4] - Concerns are raised about "crony capitalism" and the potential for businesses to seek exemptions from tariffs, favoring big and connected businesses [9][10] - The White House views the president as the "dealmaker chief" and sees the tariff policy as a deliberate strategy to improve the US economy, even if it means picking winners and losers [13][14] Legal and Political Considerations - Invoking national security for tariffs, such as on bathroom vanities, is seen as an attempt to find a firmer legal footing for the tariffs, potentially to defend them in court [15][16] - There is speculation that even if Democrats come into power, these tariffs may not be rolled back entirely due to the desire to protect American workers and maintain government revenue [20][21] - Exemptions from tariffs could become a tool for any president to favor certain players, including liberal billionaires or trade unions [22]

Group 1 - U.S. stock futures showed volatility following President Trump's announcement of new tariffs on drugs, trucks, and furniture [1] - The market reaction to the tariff news was relatively calm, indicating resilience among investors [1]

Trump announces 25% tariff on trucks and 30% tariff on furniture, potentially boosting costs for items that have already risen considerably in price.https://t.co/YarONuSwNy ...

Trump announces 25% tariff on trucks and 30% tariff on furniture, potentially boosting costs for items that have already risen considerably in price.https://t.co/SplVtORm96 ...

Core Point - Pottery Barn, a brand under Williams-Sonoma, Inc., has launched a new website for customers in the United Kingdom, providing direct access to its collections focused on quality, timeless style, and sustainability [1] Company Summary - Pottery Barn is part of Williams-Sonoma, Inc., which is recognized as the world's largest digital-first, design-led, and sustainable home retailer [1] - The new website allows UK customers to access Pottery Barn's signature collections of furniture, bedding, décor, and accessories for the first time [1] Industry Summary - The launch of the UK website reflects the growing trend of digital retailing in the home goods sector, emphasizing the importance of sustainability and quality in consumer preferences [1]

Core Insights - Dillard's Inc. (DDS) reached a new 52-week high of $606.96 on September 17, 2025, before closing at $595.92, indicating strong investor confidence in the company's performance and sales momentum [1] - The stock has shown a year-to-date increase of 38%, outperforming the Retail – Regional Department Stores industry and the Retail-Wholesale sector, which rose 22% and 10.8% respectively [2][9] - Dillard's net sales increased by 1.6% year-over-year, with comparable store sales up 1%, driven by growth in juniors', children's apparel, and accessories, despite a decline in home and furniture categories [6][9] Financial Performance - Earnings per share (EPS) for Dillard's was $4.66, exceeding Zacks Consensus Estimates, supported by disciplined expense control, although retail gross margin decreased by 100 basis points to 38.1% due to weakness in ladies' apparel [6] - The company ended the quarter with $1.01 billion in cash and reduced long-term debt to $225.6 million, maintaining steady shareholder returns with $9.8 million in buybacks and a declared quarterly dividend of 30 cents per share for November [7][9] Market Position and Valuation - Dillard's is currently trading at a forward 12-month P/E multiple of 20.34X, which is below the industry average of 15.59X and the S&P 500's average of 23.36X, indicating a premium valuation [12] - The upward revisions in earnings estimates for fiscal 2025 and 2026, with increases of 1.3% and 2.9% respectively, suggest growing analyst confidence in the company's growth potential [10] Strategic Outlook - Dillard's is leveraging remodels, trend-focused assortments, and omni-channel investments to enhance its relevance in a competitive retail landscape, which supports the positive sentiment around its stock performance [14] - The company's financial strength and ability to deliver positive surprises indicate potential for further growth, making it an attractive option for investors seeking resilient retail exposure [15]

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 Insights - Williams-Sonoma, Inc. (WSM) is enhancing its presence in the home furnishings market through strategic expansions and brand development [1][9] - The opening of Rejuvenation's first Tennessee store in Nashville marks the brand's 12th retail location, showcasing its commitment to craftsmanship and quality [1][9] Expansion Initiatives - The new Green Hills store will offer a curated collection of handcrafted products, including customizable lighting and furniture, produced in Portland, OR [2] - Williams-Sonoma plans to grow its core brands by introducing new products and expanding into non-furniture categories such as textiles and housewares [4] - The company is set to open four new stores in Mexico, including the first West Elm in Puerto Vallarta, and anticipates growth in Canada and other key markets [4] Financial Performance - WSM shares have increased by 6.7% year-to-date, outperforming the Zacks Retail - Home Furnishings industry's growth of 4.2% [6][9] - The company's growth is attributed to its B2B initiatives and ongoing expansion plans [6] Brand Strategy - Williams-Sonoma's strategy focuses on blending design-driven innovation with exceptional customer service across its brand portfolio [3] - The company emphasizes the importance of aesthetically appealing stores located in prime areas to support its market presence [3]