Home Furnishing and Improvement Retail Stocks Q4 In Review: Floor And Decor (NYSE:FND) Vs Peers
Let's dig into the relative performance of Floor And Decor (NYSE:FND) and its peers as we unravel the now-completed Q4 home furnishing and improvement retail earnings season.
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. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 21.7% on average since the previous earnings results.
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, topping analyst expectations by 3.8%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates. On the other hand, its full-year earnings and revenue guidance missed Wall Street's estimates.
Tom Taylor, Chief Executive Officer, stated, “We are pleased to deliver better-than-expected fiscal 2023 fourth-quarter diluted earnings per share of $0.34, primarily due to comparable store sales that were better than anticipated. We are proud of how our teams are collaborating to successfully execute our sales-driving initiatives, prudently manage expenses without sacrificing customer service, and strategically grow our gross margin rate. We are particularly proud of accomplishing these results when existing home sales are at record lows, and flooring industry sales continue to contract. As we look to 2024, we remain focused on growing our market share by continuing to capitalize on our everyday low prices and value-driven options, trend-right product assortments, in-stock job lot quantities, and the exceptional customer service provided by our store associates.”
Floor And Decor scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 14.2% since the results and currently trades at $129.62.
Is now the time to buy Floor And Decor? Access our full analysis of the earnings results 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.
The stock is up 27.3% since the results and currently trades at $307.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free.
Slowest Q4: 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.
RH had the weakest performance against analyst estimates in the group. The stock is up 6.4% since the results and currently trades at $316.
Read our full analysis of RH's results here.
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 up 6% since the results and currently trades at $384.
Read our full, actionable report on Home Depot here, it's free.
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 $429.5 million, down 13.7% year on year, surpassing analyst expectations by 2.1%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
The stock is up 33.2% since the results and currently trades at $14.72.
Read our full, actionable report on Sleep Number here, it's free.
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