Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Home Depot (NYSE:HD) and its peers.

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 mixed Q4; on average, revenues beat analyst consensus estimates by 1% while next quarter's revenue guidance was 9.4% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 13.2% on average since the previous earnings results.

Home Depot (NYSE:HD)

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Home Depot reported revenues of $34.79 billion, down 2.9% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue estimates. EPS also beat slightly, showing that the company is staying on track.

"After three years of exceptional growth for our business, 2023 was a year of moderation," said Ted Decker, chair, president, and CEO.

The stock is down 0.2% since the results and currently trades at $361.6.

Is now the time to buy Home Depot? 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 estimates.

The stock is up 28.5% since the results and currently trades at $309.88.

Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it's free.

Slowest 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 $738.3 million, down 4.4% year on year, falling short of analyst expectations by 5.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

RH had the weakest performance against analyst estimates in the group. The stock is up 4.7% since the results and currently trades at $311.

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' earnings and revenue estimates.

The stock is up 28.1% since the results and currently trades at $14.16.

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

Lowe's (NYSE:LOW)

Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.

Lowe's reported revenues of $18.6 billion, down 17.1% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the full year.

Lowe's had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 5.3% since the results and currently trades at $243.44.

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

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