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 Lowe’s (NYSE:LOW) 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 mixed Q4; on average, revenues beat analyst consensus estimates by 1%. while next quarter’s revenue guidance was 9.4% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 12% on average since the previous earnings results.
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 $18.6 billion, down 17.1% year on year, in line with analyst expectations. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
“This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.
Lowe’s delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The stock is up 4.4% since the results and currently trades at $241.51.
Read our full report on Lowe’s here, it’s free.
Best Q4: 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 $2.28 billion, down 7.1% year on year, outperforming analyst expectations by 2.4%. It was a very strong quarter for the company, with a solid beat of analysts’ revenue estimates, driven by better-than-expected same-store sales at its flagship Williams Sonoma brand (1.6% growth vs estimates of negative 0.5%) and Pottery Barn (negative 9.6% vs estimates of negative 10.3%).
The stock is up 27.5% since the results and currently trades at $307.28.
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 $738.3 million, down 4.4% year on year, falling short of analyst expectations by 5.1%. It was a weak quarter for the company, with a miss of analysts’ revenue estimates. However, revenue guidance for the full year was more encouraging. The company stated that they “expect demand trends to accelerate throughout fiscal 2024″ despite a challenging backdrop due to a weak US housing market.”
RH had the weakest performance against analyst estimates in the group. The stock is down 7% since the results and currently trades at $276.2.
Read our full analysis of RH’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 $1.05 billion, flat year on year, surpassing analyst expectations by 3.8%. It was a decent quarter for the company, with an impressive beat of analysts’ revenue estimates but underwhelming sales guidance for the full year.
Floor And Decor achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 7.1% since the results and currently trades at $121.61.
Read our full, actionable report on Floor And Decor here, it’s free.
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 $34.79 billion, down 2.9% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts’ revenue estimates.
The stock is flat since the results and currently trades at $362.33.
Read our full, actionable report on Home Depot here, it’s free.
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