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Furniture sellers are preparing for a sharp downturn in consumer spending this year as mortgage rates rise and people pull back on purchases of goods such as sofas and beds.
RH the high-end furniture seller formerly known as Restoration Hardware, on Wednesday became the latest retailer to cut its financial targets, citing a weaker-than-expected economic environment. The company said it expects sales to decline between 2% and 5% in the current fiscal year, a change from the flat to 2% growth forecast earlier in the month. Chief Executive Gary Friedman said a decline in luxury home sales and the prospects of the Federal Reserve further raising the federal-funds rate will contribute to cooling sales.