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Q4 Earnings Highs And Lows: Sleep Number (NASDAQ:SNBR) Vs The Rest Of The Home Furniture Retailer Stocks

StockStory - Thu Apr 18, 2:43AM CDT

SNBR Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sleep Number (NASDAQ:SNBR) and the rest of the home furniture retailer stocks fared in Q4.

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; on average, revenues were in line with analyst consensus estimates, while next quarter's revenue guidance was 9.4% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, but home furniture retailer stocks have shown resilience, with share prices up 7.9% on average since the previous earnings results.

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, topping analyst expectations by 2.1%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' revenue estimates.

“While the consumer environment remains challenging for the mattress industry, our swift actions to improve demand and reduce costs allowed us to make better progress in the fourth quarter than we expected,” said Shelly Ibach, Chair, President and CEO.

Sleep Number Total Revenue

Sleep Number delivered the slowest revenue growth of the whole group. The stock is up 22.5% since the results and currently trades at $13.54.

Is now the time to buy Sleep Number? 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.

Williams-Sonoma Total Revenue

The stock is up 16.8% since the results and currently trades at $281.7.

Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results 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 $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 down 17.7% since the results and currently trades at $244.5.

Read our full analysis of RH'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 $344 million, down 3.5% year on year, surpassing analyst expectations by 2.5%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Arhaus achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.8% since the results and currently trades at $14.06.

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

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