Q3 Earnings Roundup: Home Depot (NYSE:HD) And The Rest Of The Home Furnishing and Improvement Retail Segment

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how home furnishing and improvement retail stocks fared in Q3, starting with Home Depot (NYSE:HD).

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 slower Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, home furnishing and improvement retail stocks have performed well with share prices up 26.8% on average 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 $41.35 billion, up 2.8% 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 and EPS estimates.

"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories. Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand," said Ted Decker, chair, president and CEO.

Interestingly, the stock is up 8% since reporting and currently trades at $386.82.

Read our full report on Home Depot here, it’s free.

Best Q3: 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 $1.88 billion, up 4.6% year on year, outperforming analysts’ expectations by 0.6%. The business had a strong quarter with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $204.67.

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

Weakest Q3: 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 $342.9 million, down 19.6% year on year, falling short of analysts’ expectations by 5.4%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue 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. Interestingly, the stock is up 82% since the results and currently trades at $10.01.

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 $883.8 million, up 8.9% year on year. This number was in line with analysts’ expectations. Zooming out, it was a softer quarter as it produced a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

RH achieved the fastest revenue growth among its peers. The stock is up 43.3% since reporting and currently trades at $219.65.

Read our full, actionable report on RH here, it’s free.

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 $1.18 billion, up 5.5% year on year. This print met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

The stock is up 9.1% since reporting and currently trades at $70.95.

Read our full, actionable report on Floor And Decor here, it’s free.

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