As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the home furnishings industry, including Somnigroup (NYSE:SGI) 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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
While some home furnishings stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.
Somnigroup (NYSE:SGI)
Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE:SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products
Somnigroup reported revenues of $1.21 billion, up 3.2% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
Unsurprisingly, the stock is down 8% since reporting and currently trades at $61.32.
Read our full report on Somnigroup here, it’s free.
Best Q4: Lovesac (NASDAQ:LOVE)
Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.
Lovesac reported revenues of $241.5 million, down 3.6% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
Lovesac delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 30.4% since reporting. It currently trades at $20.75.
Is now the time to buy Lovesac? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Leggett & Platt (NYSE:LEG)
Founded in 1883, Leggett & Platt (NYSE:LEG) is a diversified manufacturer of products and components for various industries.
Leggett & Platt reported revenues of $1.06 billion, down 5.3% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 26.3% since the results and currently trades at $7.37.
Read our full analysis of Leggett & Platt’s results here.
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 $521.8 million, up 4.3% year on year. This result beat analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts’ Retail revenue estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
La-Z-Boy scored the fastest revenue growth among its peers. The stock is down 13.1% since reporting and currently trades at $39.32.
Read our full, actionable report on La-Z-Boy 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 $2.64 billion, flat year on year. This number surpassed analysts’ expectations by 4.1%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ organic revenue estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is down 9.8% since reporting and currently trades at $110.09.
Read our full, actionable report on Mohawk Industries here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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