Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Leggett & Platt (NYSE:LEG) and the best and worst performers in the home furnishings industry.
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. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and home furnishings stocks have had a rough stretch, with share prices down 9.6% on average since the previous earnings results.
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 mixed quarter for the company, with revenuenarrowly topping analysts' expectations. On the other hand, its full-year 2024 revenue and EPS guidance missed 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.
President and CEO Mitch Dolloff commented, "2023 was another challenging year for residential end markets as our Bedding Products and Furniture, Flooring & Textile Products segments faced ongoing weak market demand. Encouragingly, our Specialized Products segment benefited from sustained demand strength as industrial end markets continue to recover post-pandemic.
Leggett & Platt achieved the highest full-year guidance raise of the whole group. The stock is down 23% since the results and currently trades at $17.92.
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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 estimates.
Mohawk Industries pulled off 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.
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.
La-Z-Boy had the slowest revenue growth in the group. The stock is down 10% since the results and currently trades at $33.97.
Read our full analysis of La-Z-Boy'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 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, with full-year revenue guidance missing analysts' 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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