Home Furnishings Stocks Q3 Recap: Benchmarking Lovesac (NASDAQ:LOVE)

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the home furnishings stocks, including Lovesac (NASDAQ:LOVE) and its peers.

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 6 home furnishings stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.8% above.

Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.

Weakest Q3: Lovesac (NASDAQ:LOVE)

Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.

Lovesac reported revenues of $150.2 million, flat year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and full-year revenue guidance missing analysts’ expectations.

Shawn Nelson, Chief Executive Officer, stated, “Our focus on secular growth initiatives such as new products and the beginnings of a major evolution in our marketing, enabled slight year-over-year growth in net sales in the third quarter, reflecting market share gains as compared to our category. As we transitioned into our fiscal fourth quarter, we adjusted our marketing strategies and have seen solid growth quarter-to-date, inclusive of the Black Friday and Cyber Monday holiday events. Lovesac is inventing and investing steadily, even through these tough times for our category, while balancing cash flow generation and profitability. Our tall ambitions begin with reaching our goal of three million Lovesac households by 2030: Households that will have ever-more Designed For Life products across ever-more rooms of the house. We are totally focused and committed to this goal that we believe can produce meaningful growth over the next few years—regardless of what happens in the macro environment.”

Interestingly, the stock is up 7.2% since reporting and currently trades at $14.73.

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

Best Q3: 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 $522.5 million, flat year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 25.6% since reporting. It currently trades at $37.27.

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

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 $2.76 billion, up 1.4% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 15.2% since the results and currently trades at $109.30.

Read our full analysis of Mohawk Industries’s results here.

Somnigroup (NYSE:SGI)

Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE:SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products

Somnigroup reported revenues of $2.12 billion, up 63.3% year on year. This result beat analysts’ expectations by 3%. It was a strong quarter as it also produced a solid beat of analysts’ Direct revenue estimates and full-year EPS guidance topping analysts’ expectations.

Somnigroup pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 12.2% since reporting and currently trades at $89.28.

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

Leggett & Platt (NYSE:LEG)

Founded in 1883, Leggett & Platt (NYSE:LEG) is a diversified manufacturer of products and components for various industries.

Leggett & Platt reported revenues of $1.04 billion, down 5.9% year on year. This number surpassed analysts’ expectations by 1.1%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Bedding revenue estimates.

Leggett & Platt had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 19.7% since reporting and currently trades at $10.99.

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

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