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Q3 Earnings Highs And Lows: RH (NYSE:RH) Vs The Rest Of The Home Furniture Retailer Stocks

StockStory - Thu Jan 18, 11:41PM CST

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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at RH (NYSE:RH), and the best and worst performers in the home furniture retailer group.

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 weaker Q3; on average, revenues missed analyst consensus estimates by 2.6% Stocks have faced challenges as investors prioritize near-term cash flows, but home furniture retailer stocks held their ground better than others, with the share prices up 6.4% on average since the previous earnings results.

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.

RH Total Revenue

RH delivered the weakest full-year guidance update of the whole group. The stock is down 9.3% since the results and currently trades at $255.02.

Read our full report on RH 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 Total Revenue

Williams-Sonoma had the slowest revenue growth among its peers. The stock is up 28.3% since the results and currently trades at $207.

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 32.7% since the results and currently trades at $10.79.

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 an impressive beat of analysts' earnings estimates but a miss of analysts' gross margin estimates.

Arhaus pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 39.2% since the results and currently trades at $11.39.

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

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The author has no position in any of the stocks mentioned

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