Home Furnishing and Improvement Retail Stocks Q1 In Review: Home Depot (NYSE:HD) Vs Peers
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Home Depot (NYSE:HD) and the rest of the home furnishing and improvement retail stocks fared in Q1.
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 6 home furnishing and improvement retail stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 1.8%. while next quarter's revenue guidance was 4.7% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and home furnishing and improvement retail stocks have held roughly steady amidst all this, with share prices up 1.4% 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 $36.42 billion, down 2.3% year on year, falling short of analysts' expectations by 0.6%. It was a mixed quarter for the company, with a narrow beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
"The team executed at a high level in the quarter, and we continued to grow market share," said Ted Decker, chair, president and CEO.
The stock is down 4.6% since the results and currently trades at $325.39.
Read our full report on Home Depot here, it's free.
Best Q1: 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 $1.66 billion, down 5.4% year on year, in line with analysts' expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 8.4% since the results and currently trades at $287.79.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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 $470.4 million, down 10.7% year on year, falling short of analysts' expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
Sleep Number had the slowest revenue growth in the group. The stock is down 2.4% since the results and currently trades at $13.25.
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 $1.10 billion, down 2.2% year on year, falling short of analysts' expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and underwhelming earnings guidance for the full year.
Floor And Decor achieved the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates among its peers. The stock is up 1.1% since the results and currently trades at $114.04.
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 $295.2 million, down 3.1% year on year, surpassing analysts' expectations by 11.7%. It was a strong quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Arhaus scored the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 29% since the results and currently trades at $17.01.
Read our full, actionable report on Arhaus here, it's free.
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