The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Floor And Decor (NYSE:FND) and the rest of the home furnishing and improvement retail stocks fared in Q4.
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 mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 24% since the latest earnings results.
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, up 5.7% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Tom Taylor, Chief Executive Officer, stated, “We are extremely proud of our store and store support teams for executing our sales and customer service initiatives and diligently managing our costs during the fourth quarter and full-year. Their hard work enabled us to report fourth quarter comparable store sales, earnings flow-through, and earnings per share that were better-than-expected despite the macroeconomic challenges affecting our category. Our fourth quarter and full-year results demonstrate the resiliency of our business model and the potential earnings power we believe we can unlock over time as industry fundamentals improve.”
The stock is down 16.5% since reporting and currently trades at $77.50.
Is now the time to buy Floor And Decor? 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 $2.46 billion, up 8% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Williams-Sonoma achieved the biggest analyst estimates beat among its peers. The stock is down 9.9% since reporting. It currently trades at $155.23.
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 high-end furniture and home decor.
RH reported revenues of $812.4 million, up 10% year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
As expected, the stock is down 26.1% since the results and currently trades at $184.88.
Read our full analysis of RH’s results here.
Lowe's (NYSE:LOW)
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Lowe's reported revenues of $18.55 billion, flat year on year. This number beat analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations.
Lowe's had the weakest full-year guidance update among its peers. The stock is down 8.9% since reporting and currently trades at $220.79.
Read our full, actionable report on Lowe's here, it’s free.
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 $39.7 billion, up 14.1% year on year. This print topped analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
Home Depot achieved the fastest revenue growth among its peers. The stock is down 8.5% since reporting and currently trades at $350.43.
Read our full, actionable report on Home Depot here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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