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Wrapping up Q4 earnings, we look at the numbers and key takeaways for the home furnishings stocks, including La-Z-Boy (NYSE:LZB) 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 5 home furnishings stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.5% below.
While some home furnishings stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% since the latest earnings results.
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 print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ Retail revenue estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our third quarter results reflect the steady progress we have made to build a more agile business, create our own momentum, and drive growth in what is still a challenged environment."
La-Z-Boy scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 32.6% since reporting and currently trades at $38.58.
Is now the time to buy La-Z-Boy? Access our full analysis of the earnings results here, it’s free.
Best Q4: Purple (NASDAQ:PRPL)
Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.
Purple reported revenues of $129 million, down 11.6% year on year, in line with analysts’ expectations. The business performed better than its peers, with EBITDA guidance for the full year ahead of analysts’ expectations.
The market seems happy with the results as the stock is up 32.6% since reporting. It currently trades at $0.88.
Is now the time to buy Purple? Access our full analysis of the earnings results here, it’s free.