Q2 Rundown: Home Depot (NYSE:HD) Vs Other Home Furnishing and Improvement Retail Stocks

Looking back on home furnishing and improvement retail stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including 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 mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.7% since the latest 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 $45.28 billion, up 4.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

"Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects," said Ted Decker, chair, president and CEO.

Unsurprisingly, the stock is down 4.7% since reporting and currently trades at $375.99.

Read our full report on Home Depot here, it’s free for active Edge members.

Best Q2: 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 $358.4 million, up 15.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Arhaus achieved the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $9.79.

Is now the time to buy Arhaus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: 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 $327.9 million, down 19.7% year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Sleep Number delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 27.7% since the results and currently trades at $5.90.

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

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 $899.2 million, up 8.4% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and revenue guidance for next quarter missing analysts’ expectations.

The stock is down 24.2% since reporting and currently trades at $173.45.

Read our full, actionable report on RH here, it’s free for active Edge members.

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 $1.84 billion, up 2.7% year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also produced an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 8.7% since reporting and currently trades at $180.55.

Read our full, actionable report on Williams-Sonoma here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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