Furniture sellers are bracing for a sharp drop in consumer spending this year as mortgage rates rise and people return to buying goods like sofas and beds.
RH formerly Recovery Hardware, late Wednesday became the latest retailer to cut its financial targets, citing a weaker-than-expected economic environment. The company said it expected sales to fall between 2% and 5% in the current financial year, changing from a flat growth forecast to 2% earlier this month. Managing director Gary Friedman said the decline in luxury home sales and the prospect of the Federal Reserve further raising the federal funds rate would contribute to the drop in sales.
https://www.wsj.com/articles/rh-cuts-financial-targets-as-furniture-retailers-face-slower-consumer-spending-11656602688?mod=pls_whats_news_us_business_f RH cuts financial targets, as furniture retailers face slower consumer spending