Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 now behind us, let’s have a look at Home Depot (NYSE:HD) and its peers.
Home furnishing and improvement retailers understand that ‘home is where the heart is’ but that a home is only right when it’s in livable condition and furnished just right. These stores therefore focus on providing what is needed for both the upkeep of a house as well as what is desired for the aesthetics of a home. Decades ago, it was thought that furniture and home improvement would resist e-commerce because of the logistical challenges of shipping a sofa or lawn mower, but now you can buy both online; so just like other retailers, these stores need to adapt to new realities and consumer behaviors.
The 7 home furnishing and improvement retail stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 1.9% Stocks have faced challenges as investors prioritize near-term cash flows, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 14.4% on average since the previous earnings results.
Home Depot (NYSE:HD)
Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances.
Home Depot reported revenues of $37.71 billion, down 3% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue estimates.
"Our quarterly performance was in line with our expectations," said Ted Decker, chair, president and CEO.
The stock is up 22.2% since the results and currently trades at $351.65.
Is now the time to buy Home Depot? Access our full analysis of the earnings results here, it's free.
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 $1.85 billion, down 15.5% year on year, falling short of analyst expectations by 4.5%. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
Williams-Sonoma had the slowest revenue growth among its peers. The stock is up 30.6% since the results and currently trades at $210.59.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $472.6 million, down 12.6% year on year, falling short of analyst expectations by 7.7%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' revenue estimates.
Sleep Number had the weakest performance against analyst estimates in the group. The stock is down 27% since the results and currently trades at $11.7.
Read our full analysis of Sleep Number's results here.
Floor And Decor (NYSE:FND)
Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.
Floor And Decor reported revenues of $1.11 billion, flat year on year, falling short of analyst expectations by 1.4%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.
Floor And Decor had the weakest full-year guidance update among its peers. The stock is up 27.7% since the results and currently trades at $108.5.
Read our full, actionable report on Floor And Decor 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 $326.2 million, up 1.9% year on year, surpassing analyst expectations by 2.6%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.
Arhaus pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 46.7% since the results and currently trades at $12.01.
Read our full, actionable report on Arhaus here, it's free.
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The author has no position in any of the stocks mentioned