Reflecting On Home Furniture Retailer Stocks’ Q4 Earnings: Arhaus (NASDAQ:ARHS)
Looking back on home furniture retailer stocks' Q4 earnings, we examine this quarter's best and worst performers, including Arhaus (NASDAQ:ARHS) and its peers.
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 solid Q4; on average, revenues beat analyst consensus estimates by 1.5% 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 furniture retailer stocks held their ground better than others, with the share prices up 21.1% 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 $344 million, down 3.5% year on year, topping analyst expectations by 2.5%. It was a strong quarter for the company, with an impressive beat of analysts' revenue, operating income, and earnings estimates.
Arhaus achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is up 21.1% since the results and currently trades at $15.5.
Is now the time to buy Arhaus? 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 and EPS estimates. In addition, management increased the company's quarterly dividend by 26% and share repurchase capacity to $1 billion.
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.
Weakest 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 $751.2 million, down 13.6% year on year, falling short of analyst expectations by 0.9%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.
RH had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 2.9% since the results and currently trades at $289.5.
Read our full analysis of RH's results here.
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' revenue estimates. Although Sleep Number missed analysts' EPS estimates from a GAAP perspective, its adjusted EPS beat by a wide margin (loss of $0.58 per share vs estimates of a $0.88 per share loss).
Sleep Number had the slowest revenue growth among its peers. 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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