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Many companies in the home furnishings and furniture industry are enhancing their marketing efforts and improving internal efficiency in response to the industry's increased competitive environment., and the Internet has also become an important industry tool. The US domestic economy is also slowing and this is also having an effect on the industry due to its cyclical nature. Investors will find several interesting stocks in this sector, and some have growth potential for the next three to five years.

The furniture and home furnishings industry should experience modest earnings gains, despite increasing mortgage rates and a slowing of home building activity. Interest rates continue to be low historically, which should not cause a dramatic decrease in home purchases. The residential furniture sector continues to be dominated by manufacturer-retailer alliances, and office furniture suppliers are becoming more automated and focusing on the development of ergonomic products. Investments in this industry have suffered double-digit losses in 1994, a situation not likely to improve in 1995.

Industry analysts believe that the currently low price for stocks in the home furnishings and furniture market could be a good long term investment. The analysts point out that although interests rates have risen and home buying may have slowed, the furniture industry does not seem closely tied to home sales. The purchase of furniture generally lags behind home buying. However, only one of the 10 stocks listed have risen since Apr 1994. The majority of the rest have declined by double digits.

Furniture and home furnishing stocks have declined by 4% to 11% since Feb 1994, but should do well in 1994. These businesses usually do well once the economy is well into the recovery. One problem that exists include the fact that consumers perceive the price of furniture to be higher than the value. Manufacturers can help to fight this by reducing delivery times, which would take a large investment in new equipment, and by creating brand awareness.

Furniture and home furnishings industry stocks should perform well in 1994. New home construction and the higher sales of existing homes generally forecast sales of new furniture. However, analysts believe that new home owners may be taking advantage of low interest rates and spending all available cash on homes with none left over for furnishings. Sales of home furniture increased by 10% in 1993. Sales of office furnishings are expected to increase as well since many companies are investing in ergonomic furniture.

The percentage that Herman Miller's sales fell in the first quarter. The company posted sales of $324.5 million compared to $346.9 million in Q1 2002. The Michigan-based firm posted income [...]

Cost-cutting has enabled office furniture maker Herman Miller to post a narrower Q4 loss. The firm posted a net loss of $1.3 million, or $0.02 a share, compared to a [...]

Notwithstanding Herman Miller Inc.'s contract with the British government and continuing efforts of the company to slash costs, margines remain under pressure for the near term as core domestic office furniture markets have taken a turn for the worse. Shares are untimely and offer attractive 3-5 year appreciation potential.

Herman Miller has confirmed its previously-announced guidance for its Q3, ended 28 February, and has cut 265 jobs. The company has conceded that its sales and earnings are likely to [...]

Herman Miller Inc. expects order trends to improve after two years of decline in the furniture market. Stock appreciation will be slow for the next 3 to 5 years and the company may take advantage of this in its share-repurchase program.