The first-quarter financial reports for the home industry in 2026 have all been released, and Furniture China Expo understands that the overall market is facing significant downward pressure.
Data from the National Bureau of Statistics shows that revenue for designated-size furniture manufacturing enterprises reached 126.76 billion yuan in the first quarter, down 9.6% year on year, with total profits plummeting 44.9%. The industry's average profit margin stood at a mere 1.6%. Data from 64 listed home companies revealed that sector revenue fell 10% year on year, with net profits nearly cut in half.
Amid the overall industry chill, various sub-sectors have shown markedly divergent trajectories, with numerous enterprises achieving counter-cyclical breakthroughs through product innovation, channel optimization, and overseas expansion.
Customized home furnishings was the hardest-hit segment in this downturn cycle. All nine listed custom furniture companies saw year-on-year revenue declines, with only two remaining profitable while the other seven slipped into losses. As the industry leader, Oppein Home experienced significant drops in both revenue and net profit in the first quarter, with cash flow turning negative from positive—a clear indicator of mounting operational pressure at the top.
In contrast to the universal struggles of custom furniture, the ready-made home segment showed clear polarization. Upholstered furniture demonstrated strong market resilience, buoyed by replacement demand in the existing housing stock. Kuka Home posted counter-cyclical revenue growth in the first quarter, with only slight profit fluctuations, stable gross margins, and healthy cash flow—maintaining steady operations through the industry winter.
De Rucci achieved revenue growth but fell into a pattern of rising revenue without rising profits, as persistent price wars in the industry continued to erode corporate margins. The mattress segment saw severe polarization: MLILY relied on overseas OEM to drive revenue growth yet plunged into losses due to surging financial expenses; Sleemon experienced a slight revenue decline with significantly contracted gross margins, leaving the company in a difficult adjustment and transformation phase. Overall, upholstered furniture's stronger replacement attributes make it less susceptible to real estate cycles, but intensifying industry competition has pushed overall profitability steadily downward.
In the distribution sector, Red Star Macalline successfully turned a profit in the first quarter. By optimizing store operations, continuously reducing costs and improving efficiency, and lowering financing costs, the company significantly improved operational quality and cash flow. However, from an industry-wide perspective, foot traffic at home furnishing stores remains sluggish, with national building materials and home furnishing store sales showing a noticeable year-on-year decline in the first quarter. The traditional rental-dependent business model is no longer sustainable, and offline stores urgently need to transform and rebuild their traffic attraction and comprehensive service capabilities.
Synthesizing the first-quarter performance, three core trends in the current home industry can be identified. Brand and category barriers continue to widen, with leading brands leveraging mature channels and brand equity demonstrating stronger risk resilience, while survival pressure on small and medium brands intensifies. Industry-wide price wars are escalating, with channel profits being continuously squeezed, officially ushering the industry into an era of meager profits. Refined operations, product upgrades, and cost control have become critical to corporate breakthroughs.
At the same time, overseas markets have emerged as an important new growth engine for home enterprises. China's furniture exports grew steadily in the first quarter, with the overseas expansion track gaining sustained momentum. The industry's international push has also moved beyond the crude inventory-dumping phase, gradually shifting from pure product export to in-depth brand building and localized operations.
Overall, the era of extensive growth driven by real estate dividends has come to an end. In 2026, the home industry is in a critical reshuffling period of squeezing out excess and building internal strength. Going forward, only quality enterprises that deeply cultivate product competitiveness, optimize channel efficiency, fortify brand moats, and exercise prudent cash flow management will be able to stand firm amid industry adjustment and achieve long-term high-quality development.
Source：jiajuguanchazhe
