Business of Home Podcast Episode: Studio Four's Stacy Waggoner on What Tariffs Have Revealed About High-End Fabric
Host: Dennis Scully
Guest: Stacy Waggoner, Studio Four
Date: January 5, 2026

Episode Overview

This episode features a deep-dive conversation between Dennis Scully and Stacy Waggoner, the founder of Studio Four, a renowned New York fabric showroom. Their talk spans Stacy’s storied career in textiles, the evolution and acceptance of digitally printed textiles, the realities of launching and running a multiline showroom, and the multifaceted impact of international tariffs and global supply chain changes on the high-end fabric and rug business. Stacy’s firsthand insights into working with celebrated icons, starting a business during the financial crisis, and adapting to industry changes make this episode essential listening for anyone interested in the inner workings of the design fabric world.

Key Topics and Insights

1. Early Career Influences & Textiles Legacy

• Working with Jack Lenor Larsen ([03:29]–[07:05])

  • Stacy recounts a decade with the textile luminary Jack Lenor Larsen, describing it as "like being in a textile master's program."
  • She details the rigors and atmosphere of annual product launches, how each new collection demanded both technical understanding and creative storytelling.
  • Quote:
    “I worked for him for 10 years... it was like being in a textile master’s program. Every year we would have a big fall launch... and then you'd start in on, okay, here are the technical aspects of it. This is what you need to know.” (Stacy, [03:39])

• Passion for How Things Are Made

  • Stacy expresses her love for the production side: "I love a factory; I love seeing just the inner stuff." ([05:01])

2. Launching Studio Four in the Wake of Crisis

• From the 2008 Crash to a Fresh Start ([08:16]–[10:00])

  • The collapse of AM Collections and the 2008 financial crisis precipitated the founding of Studio Four.
  • Stacy humorously recounts cashing in her depleted 401k:
    “I cashed in the rest of my 401k, which is something I do not recommend, but it worked.” (Stacy, [09:13])

• Humble Beginnings and Building a Distinctive Collection

  • They started with a select few lines—rugs, textiles, and wallpaper with a unique angle (notably Florence Broadhurst’s collection, which brought cachet and international relationships).

3. The Digital Printing Revolution

• Industry Skepticism Turns into Innovation ([13:21]–[16:57])

  • Early digital printing was treated with suspicion and dismissed as “novelty.” But pioneers like Eskayel (Shannon) proved its creative power.
  • Stacy, self-described "textile snob," admits, “Oh my gosh, I'm a textile snob from way back..." ([13:39])

• Digital vs. Traditional Printing ([15:31])

  • Digital’s low setup costs encourage experimentation, but production costs can be higher than screen printing.
  • Digital allows for complexity that traditional methods can’t easily replicate, but there’s a tendency for market oversaturation:
    “The ability to produce became so widespread that everybody could do it... But... producing wallpapers and marketing them and selling them—it’s a business.” (Stacy, [16:57])

• Aesthetics and Curation

  • Noted the risk of digital making it “too easy” to create generic or uninspired patterns. Curation and quality still matter.

4. Sampling: U.S. vs. Europe

• Sampling Demands in the U.S. ([17:43]–[19:37])

  • The American model requires voluminous, generous textile samples—unlike in Europe where purchasing decisions are made in store.
  • Quote: “It is impossible to overestimate the need for samples in the US market.” (Stacy, [17:44])

• Guidance for Small Lines

  • Studio Four specializes in helping emerging lines understand the U.S. market’s unique demands and pacing. Success often takes longer than expected; setting expectations is key.

5. Managing Expectation and Nurturing New Lines

• Supporting Emerging Designers ([20:57]–[22:16])

  • Stacy outlines how lines take time to gain traction and why patience is essential.
  • New lines are often eager for quick results, but she notes “lines take a little while to hit... managing the expectations of that” is an ongoing process.

• Print-to-Order as a Business Model ([22:16]–[23:23])

  • Digital printing allows for low-inventory, on-demand production, increasing flexibility and reducing waste.

6. Tariffs, Supply Chain Realities, and Globalization

• Import Challenges: Even ‘Domestic’ Production Relies on Imports ([30:38]–[31:29])

  • Even U.S.-produced goods rely on imported raw materials like Belgian linen.
  • “Virtually every fabric line... that produces in the U.S. is produced on imported goods.” (Stacy, [30:38])

• The Big Tariff Squeeze ([31:29]–[34:47])

  • Recent changes removed the “de minimis” exemption, making small shipments from overseas subject to hefty tariffs (25–50% for some countries).
  • Tariff costs are sometimes line-itemed or rolled into prices—something Stacy dislikes as it hides true costs and makes price increases "sticky."
  • Quote: “World geopolitics really get involved with my little business here.” (Stacy, [32:28])

• Rugs: The Biggest Piece of Business ([32:35]–[33:44])

  • Rugs now account for over half of Studio Four’s revenue due to their high ticket prices, despite long production times and now-unpredictable import duties.

• Adaptation and Resiliency ([34:47]–[38:57])

  • Despite increased costs, customers remain remarkably resilient:
    “There’s less price sensitivity than there might be in other sectors...” (Stacy, [34:48])
  • The industry, Stacy suggests, may now be “numb” (“Stockholm syndrome”) to tariffs ([37:47]).

• Mixing High and Low, Navigating Shifts

  • Studio Four aims for a range—luxury hand-knotted Nepalese rugs and more accessible broadlooms—balancing exclusivity with wider appeal.

7. Curatorial Approach and What Defines Studio Four

• Studio Four’s Signature ([39:23]–[42:13])
  • Every collection must have “something compelling”—an originality and a strong designer’s hand.
  • Quote: “There is a personality behind every line that we have...There has to be something in common that we both like...that gets us into the people behind the lines.” (Stacy, [39:23])

8. Wallpaper: Timeless Appeal

• Wallpaper "Trends" & British Influence ([42:47]–[44:36])
  • The supposed ebb and flow in wallpaper’s popularity is overblown: “Is wallpaper back in? I’m like, still? Yeah, it’s still here.” ([42:47])
  • The U.K. makes wallpaper more accessible; DIY allure may make wallpaper seem more democratic, but installation is best left to pros.

9. On Pantone, Bouclé, and Embracing Color

• Pantone’s Color of the Year, White Walls & Bouclé ([45:02]–[47:56])
  • Stacy quips: “Paint those walls with Cloud Dancer and then cover them up with wallpaper.” ([45:30])
  • She resists minimalist, all-white trends, advocating for layered color and eclecticism:
    “I want layers and layers and layers of design and color and it all goes together and it’s all weird and wonderful.” ([47:44])

10. What Has Really Changed in the Industry?

• AI, Retail, and the End Consumer ([48:37]–[53:53])

  • Stacy sees limited, if any, impact of AI on design and curation, though she acknowledges room for systems and marketing improvements.
  • She describes Studio Four’s cautious approach to retail—protecting trade relationships, offering select ready-made items (pillows), but focusing mainly on B2B trade.
  • Quote: “I don’t see [AI] yet. I don’t know... I think it’s still such an old-fashioned thing.” ([48:37])

• Retail Expansion and Consumer Engagement (Pillows, Small Goods)

  • The “cash and carry” challenge: Studio Four’s focus is on serious, long-term sales over high-volume small items.

Notable Quotes & Memorable Moments

• On Digital Printing Skepticism:
  “Don’t worry about being tactful here, Stacy.” (Dennis, [14:15])
  “Garbage in and garbage out. There you go.” (Stacy, [14:17])

• On Tariffs and Geopolitics:
  “World geopolitics really get involved with my little business here, you know.” (Stacy, [32:28])

• On Wallpaper’s Staying Power:
  “People always say to me, oh, is wallpaper back in? I’m like, still? Yeah, it’s still here.” (Stacy, [42:48])

• On Personal Taste vs. Minimalism:
  “I would like to think that I could be this minimalist person... but yeah, it’s not me. I want layers and layers and layers of design and color and it all goes together and it’s all weird and wonderful. Someone... said my apartment looked like an explosion at the souk. I took it as a compliment.” (Stacy, [47:44])

Timestamps for Important Sections

• [03:29] — Working for Jack Lenor Larsen: Education by immersion, technical and creative sales mastery.
• [09:13] — Starting Studio Four post-2008, scraping together capital, scrappy beginnings.
• [13:21] — The emergence of digital printing and early industry skepticism.
• [17:44] — The critical (and often misunderstood) importance of sampling in the U.S. market.
• [22:16] — Print-to-order as a flexible, efficient business model.
• [30:38] — Tariffs and their consequences, even for “domestic” production.
• [32:35] — “Rugs are over 50% of our business.”
• [39:23] — Curating Studio Four: What makes a line stand out.
• [42:48] — The myth of wallpaper’s cyclical popularity.
• [45:30] — Pantone’s color of the year and irreverent advice.
• [47:44] — Color, pattern, and Stacy’s “explosion at the souk” aesthetic.
• [48:37] — AI, retail, changes (or lack thereof) in the industry.
• [53:53] — Final thoughts: Studio Four’s retail approach, trade loyalty.

Tone and Style

• Warm, candid, and generous: Stacy shares both expertise and personal anecdotes.
• Humorous, insightful, and practical: Both speakers enjoy poking fun at trends ("cloud dancer as primer"; "explosion at the souk") and don’t shy away from real business challenges.
• Instructional for both industry veterans and newcomers, blending history, commerce, and creativity.

For anyone interested in high-end fabrics, interior design entrepreneurship, and the realities behind the beauty, this episode is an illuminating, down-to-earth masterclass.