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Reflecting On Home Furniture Retailer Stocks’ Q4 Earnings: Arhaus (NASDAQ:ARHS)

StockStory - Wed Mar 27, 4:07AM CDT

ARHS Cover Image

Looking back on home furniture retailer stocks' Q4 earnings, we examine this quarter's best and worst performers, including Arhaus (NASDAQ:ARHS) and its peers.

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 solid Q4; on average, revenues beat analyst consensus estimates by 1.5% while next quarter's revenue guidance was 9.4% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but home furniture retailer stocks held their ground better than others, with the share prices up 21.1% on average since the previous earnings results.

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, topping analyst expectations by 2.5%. It was a strong quarter for the company, with an impressive beat of analysts' revenue, operating income, and earnings estimates.

Arhaus Total Revenue

Arhaus achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is up 21.1% since the results and currently trades at $15.5.

Is now the time to buy Arhaus? 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 and EPS estimates. In addition, management increased the company's quarterly dividend by 26% and share repurchase capacity to $1 billion.

Williams-Sonoma Total Revenue

The stock is up 27.3% since the results and currently trades at $307.

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

Weakest 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 $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 had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 2.9% since the results and currently trades at $289.5.

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' revenue estimates. Although Sleep Number missed analysts' EPS estimates from a GAAP perspective, its adjusted EPS beat by a wide margin (loss of $0.58 per share vs estimates of a $0.88 per share loss).

Sleep Number had the slowest revenue growth among its peers. The stock is up 33.2% since the results and currently trades at $14.72.

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

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