Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Leggett & Platt (NYSE:LEG) 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 decent Q1; on average, revenues beat analyst consensus estimates by 1.2%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and home furnishings stocks have had a rough stretch, with share prices down 5.1% on average since the previous earnings results.
Leggett & Platt (NYSE:LEG) Founded in 1883, Leggett & Platt (NYSE:LEG) is a diversified manufacturer making products for various industries.
Leggett & Platt reported revenues of $1.10 billion, down 9.6% year on year, falling short of analysts' expectations by 2%. Overall, it was a weak quarter for the company with a miss of analysts' FF&T revenue estimates and underwhelming earnings guidance for the full year.
President and CEO Mitch Dolloff commented, "First quarter results were in line with our expectations and our full year sales and EPS guidance range remain unchanged. We are making steady progress on the restructuring plan announced in January to optimize our manufacturing and distribution footprint and remain on track to achieve our objectives within our stated timeline.
Leggett & Platt delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. The stock is down 32.7% since reporting and currently trades at $12.17.
Is now the time to buy Leggett & Platt? Find out by reading the original article on StockStory, it's free.
Best Q1: 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 $553.5 million, down 1.4% year on year, outperforming analysts' expectations by 7.2%. It was an exceptional quarter for the company with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' Wholesale revenue estimates.
La-Z-Boy delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $37.72.
Weakest Q1: Purple (NASDAQ:PRPL) Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.
Purple reported revenues of $120 million, up 12.5% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company with a miss of analysts' earnings and revenue estimates.
As expected, the stock is down 37.9% since the results and currently trades at $1.05.
Mohawk Industries (NYSE: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 $2.68 billion, down 4.5% year on year, surpassing analysts' expectations by 1.4%. Taking a step back, it was a strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 2.5% since reporting and currently trades at $112.94.
Lovesac (NASDAQ:LOVE) Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.
Lovesac reported revenues of $132.6 million, down 6.1% year on year, surpassing analysts' expectations by 3.6%. Zooming out, it was an impressive quarter for the company with optimistic earnings guidance for the next quarter and full-year revenue guidance exceeding analysts' expectations.
Lovesac delivered the highest full-year guidance raise among its peers. The stock is down 11.4% since reporting and currently trades at $23.03.
This content was originally published on Stock Story
