Furniture Companies Trade Lower As Higher Interest Rates and Fuel Prices Weigh In


NEW YORK (AP) — Shares of furniture companies slid on Thursday, after Ethan Allen Interiors Inc. warned that sales are softening on weaker consumer confidence.

Shares of Ethan Allen fell $1.37, or 4 percent, to $33.98 in afternoon trading on the New York Stock Exchange.

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The Danbury, Conn.-based company said sales softened in August as consumer confidence waned, in addition to a reduction in lead time to fill customer orders.

The company said in July that sales were slowing because of higher interest rates and fuel prices.

The Conference Board on Tuesday said its Consumer Confidence Index posted a sharp decline in August after a modest increase in July.

Elsewhere in the sector, shares of Michigan-based furniture maker La-Z-Boy declined by 26 cents, or 2 percent, to $13.99 on the NYSE.

La-Z-Boy chief executive Kurt Darrow has rolled out a marketing campaign he hopes will boost profitability by updating the company’s image, closing plants and selling nonessential brands.

Furniture Brands International Inc. lost fell 34 cents at $19.13, and American Depositary Shares of Italian leather furniture maker Natuzzi SpA shed a penny at $6.98. All stocks trade on the NYSE.