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Q4 Rundown: La-Z-Boy (NYSE:LZB) Vs Other Home Furnishings Stocks

StockStory - Thu Apr 18, 2:35AM CDT

LZB Cover Image

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 weak Q4; on average, revenues missed analyst consensus estimates by 1.5%, while next quarter's revenue guidance was 11.4% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and home furnishings stocks have had a rough stretch, with share prices down 11.5% on average since the previous earnings results.

Weakest Q4: 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 $500.4 million, down 12.6% year on year, falling short of analyst expectations by 4.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We remain optimistic about the mid-to-long-term growth potential for our industry, given structural housing shortages and the expectation of improvements in interest rates and housing affordability, and our ability to disproportionately grow with the consumer. In the near term, despite the furniture and home furnishings industry being in a sustained slowdown, our La-Z-Boy Furniture Galleries® network is executing well. Results in January, the third month of our quarter, were negatively impacted by winter weather events, which caused reduced store traffic throughout much of the central U.S. and delivery and production delays at our U.S.-based assembly facilities, the source of the majority of our customized upholstery finished product. After January’s weather disruptions, production and deliveries are now back to normal as we focus on servicing our customers and consumers with the high quality, comfortable products they expect from us.”

La-Z-Boy Total Revenue

La-Z-Boy delivered the slowest revenue growth of the whole group. The stock is down 10% since the results and currently trades at $33.97.

Read our full report on La-Z-Boy here, it's free.

Best Q4: Mohawk Industries (NYSE:MHK)

Established in 1878, Mohawk Industries (NYSE:MHK) is a leading producer of floor-covering products for both residential and commercial applications.

Mohawk Industries reported revenues of $2.61 billion, down 1.4% year on year, outperforming analyst expectations by 1.8%. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.

Mohawk Industries Total Revenue

Mohawk Industries scored the biggest analyst estimates beat among its peers. The stock is up 3.2% since the results and currently trades at $113.17.

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

Leggett & Platt (NYSE:LEG)

Founded in 1883, Leggett & Platt (NYSE:LEG) is a diversified manufacturer making products for various industries.

Leggett & Platt reported revenues of $1.12 billion, down 6.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations due to ongoing weakness in its Bedding Products and FF&T segments. Management also projects sales volumes to decline in the low to mid-single digits.

Leggett & Platt delivered the highest full-year guidance raise in the group. The stock is down 23% since the results and currently trades at $17.92.

Read our full analysis of Leggett & Platt's results here.

Tempur Sealy (NYSE:TPX)

Established through the merger of Tempur-Pedic and Sealy in 2012, Tempur Sealy (NYSE:TPX) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products

Tempur Sealy reported revenues of $1.17 billion, down 1.4% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

The stock is down 1.9% since the results and currently trades at $50.34.

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

Lovesac (NASDAQ:LOVE)

Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.

Lovesac reported revenues of $250.5 million, up 5% year on year, falling short of analyst expectations by 5.6%. It was a weak quarter for the company: Revenue and EPS both missed. Guidance wasn't much better. Next quarter's revenue and EPS guidance, as well as the full year outlook for revenue and EPS, missed expectations.

Lovesac scored the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 17.1% since the results and currently trades at $19.33.

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

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