Home Furniture Retailer Stocks Q3 Recap: Benchmarking Arhaus (NASDAQ:ARHS)
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the home furniture retailer stocks have fared in Q3, starting with Arhaus (NASDAQ:ARHS).
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 decent Q3; on average, revenues beat analyst consensus estimates by 5.6% Stocks have faced challenges as investors prioritize near-term cash flows, but home furniture retailer stocks held their ground better than others, with the share prices up 5% on average since the previous earnings results.
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 $326.2 million, up 1.9% year on year, topping analyst expectations by 2.6%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' gross margin estimates.
Arhaus scored the highest full-year guidance raise of the whole group. The stock is up 35.2% since the results and currently trades at $11.07.
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 $2.19 billion, up 7.1% year on year, outperforming analyst expectations by 12.9%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates.
Williams-Sonoma delivered the fastest revenue growth among its peers. The stock is up 24% since the results and currently trades at $200.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $472.6 million, down 12.6% year on year, falling short of analyst expectations by 7.7%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' revenue estimates.
Sleep Number had the weakest performance against analyst estimates in the group. The stock is down 31.2% since the results and currently trades at $11.03.
Read our full analysis of Sleep Number's results here.
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 $869.1 million, down 13.6% year on year, surpassing analyst expectations by 14.6%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
RH delivered the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth among its peers. The stock is down 8.1% since the results and currently trades at $258.5.
Read our full, actionable report on RH here, it's free.
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The author has no position in any of the stocks mentioned
