The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how home furniture retailer stocks fared in Q3, starting with Williams-Sonoma (NYSE:WSM).
Furniture retailers understand that ‘home is where the heart is’ but that no home is complete without that comfy sofa to kick back on or a dreamy bed to rest in. These stores focus on providing not only what is practically needed in a house but also aesthetics, style, and charm in the form of tables, lamps, and mirrors. Decades ago, it was thought that furniture would resist e-commerce because of the logistical challenges of shipping large furniture, but now you can buy a mattress online and get it in a box a few days later; so just like other retailers, furniture stores need to adapt to new realities and consumer behaviors.
The 4 home furniture retailer stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 8.9% below.
Luckily, home furniture retailer stocks have performed well with share prices up 16.8% on average since the latest earnings results.
Best Q3: Williams-Sonoma (NYSE:WSM)
Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE:WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.
Williams-Sonoma reported revenues of $1.80 billion, down 2.9% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ gross margin and EPS estimates.
“We are pleased with the results of our third quarter, beating both top and bottom-line expectations. The quarter was driven by continued improvement in our sales trend, market-share gains, and strong profit. In Q3, our comp came in at -2.9%, with an operating margin of 17.8%, delivering a 7.1% increase in earnings per share to $1.96. Our operating results reflect the operational improvements that we have been focused on all year, and demonstrate the strength of our margin profile in a difficult environment,” said Laura Alber, President and Chief Executive Officer.
Williams-Sonoma pulled off the biggest analyst estimates beat of the whole group. The stock is up 42.6% since reporting and currently trades at $195.72.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it’s free.
Sleep Number (NASDAQ:SNBR)
Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ:SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.
Sleep Number reported revenues of $426.6 million, down 9.7% year on year, falling short of analysts’ expectations by 4.3%. The business performed better than its peers, but it was unfortunately a slower quarter with full-year EBITDA guidance missing analysts’ expectations.
The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $14.96.
Is now the time to buy Sleep Number? Access our full analysis of the earnings results here, it’s free.
Arhaus (NASDAQ:ARHS)
With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ:ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.
Arhaus reported revenues of $319.1 million, down 2.2% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 22.3% since the results and currently trades at $11.15.
Read our full analysis of Arhaus’s results here.
RH (NYSE:RH)
Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.
RH reported revenues of $811.7 million, up 8.1% year on year. This number was in line with analysts’ expectations. Aside from that, it was a softer quarter as it recorded a significant miss of analysts’ EBITDA estimates.
RH pulled off the fastest revenue growth among its peers. The stock is down 10.8% since reporting and currently trades at $340.
Read our full, actionable report on RH here, it’s free.
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