Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Arhaus (NASDAQ:ARHS) and its peers.
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 33.3% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.1%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
John Reed, Co-Founder and Chief Executive Officer, said, “Our third-quarter results demonstrate our team’s commitment to operational excellence in a challenging environment. We remain focused on our long-term growth strategy grounded in our premium, livable luxury offerings and exceptional client experience. With ten new showrooms opened already this year and an eleventh opening tomorrow in Corte Madera, California, we remain committed to expanding our presence in key markets.
The stock is up 45% since reporting and currently trades at $13.22.
Is now the time to buy Arhaus? 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.
Williams-Sonoma achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 52.3% since reporting. It currently trades at $209.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it’s free.
RH (NYSE:RH)
Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of of high-end furniture and home decor.
RH reported revenues of $811.7 million, up 8.1% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
Interestingly, the stock is up 9.6% since the results and currently trades at $417.56.
Read our full analysis of RH’s results here.
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. This print missed analysts’ expectations by 4.3%. Overall, it was a slower quarter as it also recorded full-year EBITDA guidance missing analysts’ expectations significantly.
Sleep Number had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 26.4% since reporting and currently trades at $16.74.
Read our full, actionable report on Sleep Number here, it’s free.
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