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Home Furnishings Stocks Q1 In Review: Mohawk Industries (NYSE:MHK) Vs Peers


Anthony Lee /
2024/07/09 3:39 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Mohawk Industries (NYSE:MHK) and the best and worst performers in the home furnishings industry.

A healthy housing market is good for furniture demand as more consumers are buying, renting, moving, and renovating. On the other hand, periods of economic weakness or high interest rates discourage home sales and can squelch demand. In addition, home furnishing companies must contend with shifting consumer preferences such as the growing propensity to buy goods online, including big things like mattresses and sofas that were once thought to be immune from e-commerce competition.

The 6 home furnishings stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 1.2%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and home furnishings stocks have had a rough stretch, with share prices down 12.8% on average since the previous earnings results.

Mohawk Industries (NYSE:MHK)

Established in 1878, Mohawk Industries (NYSE:MHK) is a leading producer of floor-covering products for both residential and commercial applications.

Mohawk Industries reported revenues of $2.68 billion, down 4.5% year on year, topping analysts' expectations by 1.4%. It was a strong quarter for the company, with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.

Commenting on the Company’s first quarter results, Chairman and CEO Jeff Lorberbaum stated, “Though economic headwinds are impacting industry sales, margins and mix, our first quarter results reflected the positive effect of actions we are taking to enhance our performance. Our earnings per share rose year over year as a result of restructuring, productivity initiatives and benefits from lower cost raw materials and energy, partially offset by weaker pricing and mix.

Mohawk Industries Total Revenue

The stock is up 2.2% since the results and currently trades at $112.67.

Is now the time to buy Mohawk Industries? Access our full analysis of the earnings results here, it's free.

Best Q1: La-Z-Boy (NYSE:LZB)

The prized possession of every mancave, La-Z-Boy (NYSE:LZB) is a furniture company specializing in recliners, sofas, and seats.

La-Z-Boy reported revenues of $553.5 million, down 1.4% year on year, outperforming analysts' expectations by 7.2%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' Wholesale revenue estimates.

La-Z-Boy Total Revenue

La-Z-Boy pulled off the biggest analyst estimates beat among its peers. The stock is up 10.1% since the results and currently trades at $37.51.

Is now the time to buy La-Z-Boy? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Purple (NASDAQ:PRPL)

Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.

Purple reported revenues of $120 million, up 12.5% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.

Purple achieved the fastest revenue growth in the group. The stock is down 34.9% since the results and currently trades at $1.1.

Read our full analysis of Purple's results here.

Lovesac (NASDAQ:LOVE)

Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.

Lovesac reported revenues of $132.6 million, down 6.1% year on year, surpassing analysts' expectations by 3.6%. It was an impressive quarter for the company, with optimistic earnings guidance for the next quarter and full-year revenue guidance exceeding analysts' expectations.

Lovesac achieved the highest full-year guidance raise among its peers. The stock is down 10.2% since the results and currently trades at $23.34.

Read our full, actionable report on Lovesac here, it's free.

Leggett & Platt (NYSE:LEG)

Founded in 1883, Leggett & Platt (NYSE:LEG) is a diversified manufacturer making products for various industries.

Leggett & Platt reported revenues of $1.10 billion, down 9.6% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' FF&T revenue estimates and underwhelming earnings guidance for the full year.

Leggett & Platt had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 38.8% since the results and currently trades at $11.06.

Read our full, actionable report on Leggett & Platt here, it's free.

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