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 the topic of tariffs certainly came up in the conversations we had, we expect the home furnishings industry to show resilience and adaptability in the face of pervasive macroeconomic uncertainties. In response to prior reciprocal tariffs and newly implemented Section 232 tariffs on imported upholstered furniture (25% tariff rate since October 14 and 30% beginning January 1), our covered companies have largely passed on or plan to pass along price increases to offset at least a portion of the effect of tariffs. While the precise effect on unit volumes remains unknown as a result of higher pricing, consumers are still buying furniture, and we think the industry is approaching the start of a replacement cycle for upholstered furniture after more than five years since the outbreak of Covid-19 resulted in a large demand spike for home furniture.