Home Furnishings Stocks Q4 Earnings Review: Purple (NASDAQ:PRPL) Shines
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the home furnishings industry, including Purple (NASDAQ:PRPL) and its peers.
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 weak Q4; on average, revenues missed analyst consensus estimates by 1.2%, while next quarter's revenue guidance was 11.4% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and home furnishings stocks have had a rough stretch, with share prices down 12.9% on average since the previous earnings results.
Best Q4: 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 $145.9 million, up 1.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with full-year revenue guidance topping analysts' expectations.
"The fourth quarter represented an encouraging finish to 2023 as sales finished within our guidance range and increased year-over-year for the first time in eight quarters," said Chief Executive Officer Rob DeMartini.
Purple achieved the highest full-year guidance raise of the whole group. The stock is down 28.6% since the results and currently trades at $1.46.
Is now the time to buy Purple? Access our full analysis of the earnings results here, it's free.
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 $2.61 billion, down 1.4% year on year, outperforming analyst expectations by 1.8%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.
Mohawk Industries scored the biggest analyst estimates beat among its peers. The stock is down 0.7% since the results and currently trades at $108.88.
Is now the time to buy Mohawk Industries? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $500.4 million, down 12.6% year on year, falling short of analyst expectations by 4.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
La-Z-Boy had the slowest revenue growth in the group. The stock is down 11.2% since the results and currently trades at $33.53.
Read our full analysis of La-Z-Boy's results here.
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 $1.12 billion, down 6.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations due to ongoing weakness in its Bedding Products and FF&T segments. Management also projects sales volumes to decline in the low to mid-single digits.
The stock is down 20.2% since the results and currently trades at $18.56.
Read our full, actionable report on Leggett & Platt here, it's free.
Tempur Sealy (NYSE:TPX)
Established through the merger of Tempur-Pedic and Sealy in 2012, Tempur Sealy (NYSE:TPX) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products
Tempur Sealy reported revenues of $1.17 billion, down 1.4% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
The stock is down 4.9% since the results and currently trades at $48.76.
Read our full, actionable report on Tempur Sealy here, it's free.
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