Home Furnishings Stocks Q3 Highlights: Lovesac (NASDAQ:LOVE)

Looking back on home furnishings stocks’ Q3 earnings, we examine this quarter’s best and worst performers, 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 missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

While some home furnishings stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results.

Lovesac (NASDAQ:LOVE)

Lovesac reported revenues of $149.9 million, down 2.7% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

Shawn Nelson, Chief Executive Officer, stated, “Near-term headwinds for our category clearly persisted through the pre-election period. However, we gained market share and strengthened our competitive position through our relentless focus on product innovation and operational excellence.”

Lovesac delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 32.1% since reporting and currently trades at $25.54.

Is now the time to buy Lovesac? Find out by reading the original article on StockStory, it’s free.

Best Q3: La-Z-Boy (NYSE:LZB)

La-Z-Boy reported revenues of $521 million, up 1.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a strong quarter with an impressive beat of analysts’ adjusted operating income estimates.

La-Z-Boy scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $45.23.

Slowest Q3: Leggett & Platt (NYSE:LEG)

Leggett & Platt reported revenues of $1.10 billion, down 6.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 16.5% since the results and currently trades at $10.15.

Mohawk Industries (NYSE:MHK)

Mohawk Industries reported revenues of $2.72 billion, down 1.7% year on year. This number met analysts’ expectations. More broadly, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations significantly and organic revenue in line with analysts’ estimates.

The stock is down 21.6% since reporting and currently trades at $119.05.

Tempur Sealy (NYSE:TPX)

Tempur Sealy reported revenues of $1.3 billion, up 1.8% year on year. This print topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.

The stock is up 35.3% since reporting and currently trades at $67.48.

Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

This content was originally published on Stock Story