Furniture industry sees growth through digital transformation with promising outlook for Sleep Number and Virco

From Zacks Investment Research: 2025-06-27 05:32:00

The Zacks Furniture industry is experiencing growth through digital transformation, with companies investing in e-commerce, AR, and AI to enhance customer experiences. Demand for multifunctional furniture is rising, especially among millennials and Gen Z. Despite economic uncertainties, the industry’s focus on technology and market diversification offers a promising outlook. Companies like Sleep Number Corp. and Virco Mfg. Corp. are innovating, focusing on digital marketing, and making strategic acquisitions to expand their product portfolios. The industry is expected to benefit from infrastructure modernization trends.

Two promising furniture stocks to consider are Virco, with improving gross margins and investments in manufacturing flexibility, and Sleep Number, focused on strategic cost-cutting initiatives and restructuring marketing efforts. Virco is a Zacks Rank #1 (Strong Buy) stock, while Sleep Number is a Zacks Rank #2 (Buy) stock. Both companies have seen positive earnings estimates for the future, despite recent declines in stock performance. The Zacks Furniture industry is ranked #72 out of over 250 industries, indicating positive near-term prospects.



Read more at Zacks Investment Research: Zacks Industry Outlook Highlights Sleep Number and Virco – June 27, 2025