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Q3 Earnings Highs And Lows: Home Depot (NYSE:HD) Vs The Rest Of The Home Furnishing and Improvement Retail Stocks

StockStory - Wed Jan 24, 4:22AM CST

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Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 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 slower Q3; on average, revenues missed analyst consensus estimates by 1.9% Stocks have faced challenges as investors prioritize near-term cash flows, but home furnishing and improvement retail stocks held their ground better than others, with the share prices up 14.4% 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 $37.71 billion, down 3% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue estimates.

"Our quarterly performance was in line with our expectations," said Ted Decker, chair, president and CEO.

Home Depot Total Revenue

The stock is up 22.2% since the results and currently trades at $351.65.

Is now the time to buy Home Depot? Access our full analysis of the earnings results 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 30.6% since the results and currently trades at $210.59.

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 27% since the results and currently trades at $11.7.

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

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.

Floor And Decor had the weakest full-year guidance update among its peers. The stock is up 27.7% since the results and currently trades at $108.5.

Read our full, actionable report on Floor And Decor here, it's free.

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 decent quarter for the company, with an impressive beat of analysts' earnings 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 46.7% since the results and currently trades at $12.01.

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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