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Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at RH (NYSE:RH) 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 mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.9% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 38.9% since the latest earnings results.
Weakest Q4: RH (NYSE:RH)
Formerly known as Restoration Hardware, RH (NYSE:RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.
RH reported revenues of $812.4 million, up 10% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
RH achieved the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 21.5% since reporting and currently trades at $148.38.
Read our full report on RH 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 $2.46 billion, up 8% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Williams-Sonoma delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 21.5% since reporting. It currently trades at $135.33.
Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it’s free.