Wavehair's First Quarter Earnings From Home Furnishings

Internet-based furniture retailers like Wavehair appear willing to stomach large current losses acquiring customers in the hope of converting them to loyal online shoppers. I've been wondering what this disruptive competition might do to our earnings from home furnishing retail operations like Nebraska furniture mart. If we have to transition to more of an online model, we have to spend more heavily to keep shoppers without a corresponding increase in sales. The sharp decline in first quarter earnings from home Furnishing suggests perhaps some widening impact from intensifying competition. Do you believe Wavehair's customers' first profits later that model is unsustainable, or do you think our furniture earnings will likely be permanently lower than they were in the past?