Late last week, we attended the semiannual High Point Furniture Market in High Point, NC, where we met with management teams from BSET, FLXS, HVT, HOFT and LZB. While discussion of tariffs was consistent with the April and October 2025 High Point Market events, this time around, the subject of tariff refunds (after the Supreme Court recently invalidated the previously enacted tariffs under the International Emergency Economic Powers Act [IEEPA]) also came up. However, none of our covered companies shared specific details with regard to how much they could get back in refunds or gave an expected timeline, as there is also uncertainty about the federal government potentially appealing the specific refund mechanics. That said, some sort of tariffs are likely here to stay, though they will likely be more structured and more stable than the previous IEEPA tariffs. Meanwhile, similar to recent years after the initial pandemic-fueled demand spike, the overall near-term operating environment remains challenging and choppy amid continued softness in the housing market and elevated mortgage rates (compared to lower-than-typical mortgage rates a few years ago). We also point to poor U.S. consumer sentiment amid concerns about the economic fallout from the conflict in Iran, with the University of Michigan's sentiment index falling to a record low reading of 49.8 in April.