The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Floor And Decor (NYSE:FND) and the rest of the home furnishing and improvement retail stocks fared in Q3.

Home furnishing and improvement retailers understand that ‘home is where the heart is’ but that a home is only right when it’s in livable condition and furnished just right. These stores therefore focus on providing what is needed for both the upkeep of a house as well as what is desired for the aesthetics of a home. Decades ago, it was thought that furniture and home improvement would resist e-commerce because of the logistical challenges of shipping a sofa or lawn mower, but now you can buy both online; so just like other retailers, these stores need to adapt to new realities and consumer behaviors.

The 7 home furnishing and improvement retail stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 1.9% Inflation (despite slowing) has investors prioritizing near-term cash flows, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 12.4% on average since the previous earnings results.

Floor And Decor (NYSE:FND)

Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.

Floor And Decor reported revenues of $1.11 billion, flat year on year, falling short of analyst expectations by 1.4%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' revenue estimates.

Tom Taylor, Chief Executive Officer, stated, “Amidst the continuing economic challenges posed by rising mortgage interest rates, near-record-low existing home sales, ongoing pressure on housing affordability, and slowing sales of large ticket discretionary products, we are pleased to deliver third-quarter diluted earnings per share of $0.61. Our fiscal 2023 third-quarter results are a testament to our company’s agility and unwavering commitment to executing our key growth and customer engagement strategies at an exceptional level. We remain focused on continuing to grow our market share by capitalizing on our everyday low prices and value-driven options, trend-right product assortments, in-stock job lot quantities, and the exceptional customer service provided by our store associates. We believe that our execution and new warehouse store openings will position us for accelerating sales and earnings growth when industry growth returns.”

Floor And Decor delivered the weakest full-year guidance update of the whole group. The stock is up 24.6% since the results and currently trades at $105.85.

Read our full report on Floor And Decor 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 $1.85 billion, down 15.5% year on year, falling short of analyst expectations by 4.5%. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.

Williams-Sonoma had the slowest revenue growth among its peers. The stock is up 22.8% since the results and currently trades at $198.08.

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 24.8% since the results and currently trades at $12.06.

Read our full analysis of Sleep Number's results here.

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, surpassing analyst expectations by 2.6%. It was a mixed quarter for the company, with a solid beat of analysts' revenue estimates but a miss of analysts' gross margin estimates.

Arhaus scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 34.4% since the results and currently trades at $11.

Read our full, actionable report on Arhaus here, it's free.

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.

The stock is down 2.9% since the results and currently trades at $273.12.

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