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 Home Depot (NYSE:HD) and the best and worst performers in the home furnishing and improvement retail industry.
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. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 8.9% below.
Luckily, home furnishing and improvement retail stocks have performed well with share prices up 19% on average since the latest 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 $40.22 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates but a slight miss of analysts’ gross margin estimates.
"While macroeconomic uncertainty remains, our third quarter performance exceeded our expectations," said Ted Decker, chair, president and CEO.
Home Depot pulled off the biggest analyst estimates beat of the whole group. The stock is up 1.5% since reporting and currently trades at $415.
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 $1.80 billion, down 2.9% year on year, outperforming analysts’ expectations by 1.1%. The business had a strong quarter with a decent beat of analysts’ gross margin and EPS estimates.
The market seems happy with the results as the stock is up 52.8% since reporting. It currently trades at $209.68.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: 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.
Arhaus delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 45% since the results and currently trades at $13.22.
Read our full analysis of Arhaus’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 $1.12 billion, flat year on year. This result missed analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is up 4.5% since reporting and currently trades at $105.49.
Read our full, actionable report on Floor And Decor here, it’s free.
Lowe's (NYSE:LOW)
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Lowe's reported revenues of $20.17 billion, down 1.5% year on year. This print beat analysts’ expectations by 1.4%. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
Lowe's pulled off the highest full-year guidance raise among its peers. The stock is down 5.3% since reporting and currently trades at $257.40.
Read our full, actionable report on Lowe's here, it’s free.
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