The U.S. furniture industry faces challenges in 2026 due to a cautious consumer environment and weak housing activity, with the Zacks Furniture industry currently ranked #213, placing it in the bottom 14% of over 250 Zacks industries. This ranking reflects declining earnings estimates, with projections dropping from $1.43 to $1.31 per share for 2026. The industry is grappling with elevated costs related to labor, occupancy, and logistics, significantly affecting profitability as rising prices for raw materials and transportation persist.
Companies like MillerKnoll, Inc. and Flexsteel Industries, Inc. are focusing on digital transformation and product innovation to navigate these hurdles. Increasing demand for multifunctional furniture, particularly among millennials and Gen Z, is driving product development. Despite the current adversity, industry players are strategically expanding their market presence through new acquisitions and e-commerce enhancements. Over the past year, the industry has decreased by 4.9%, while broader sectors have seen a decline of 11%.
Amid these challenges, Flexsteel, a Zacks Rank #1 (Strong Buy) stock, has gained 106.1%, while MillerKnoll, a Zacks Rank #3 (Hold) stock, has seen a decline of 10.1%. Flexsteel’s expected earnings for fiscal 2026 are projected at $4.78 per share, indicating a 14.6% growth in earnings per share, while MillerKnoll expects $1.83 on $3.81 billion in revenues.
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