Home Furniture Retailer Stocks Q4 Results: Benchmarking RH (NYSE:RH)

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at RH (NYSE:RH) and its peers.

Furniture retailers understand that ‘home is where the heart is’ but that no home is complete without that comfy sofa to kick back on or a dreamy bed to rest in. These stores focus on providing not only what is practically needed in a house but also aesthetics, style, and charm in the form of tables, lamps, and mirrors. Decades ago, it was thought that furniture would resist e-commerce because of the logistical challenges of shipping large furniture, but now you can buy a mattress online and get it in a box a few days later; so just like other retailers, furniture stores need to adapt to new realities and consumer behaviors.

The 4 home furniture retailer stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.9% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 38.9% since the latest earnings results.

Weakest Q4: 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 $812.4 million, up 10% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Home Furniture Retailer Stocks Q4 Results: Benchmarking RH (NYSE:RH)

RH achieved the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 21.5% since reporting and currently trades at $148.38.

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

Best Q4: 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 $2.46 billion, up 8% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Home Furniture Retailer Stocks Q4 Results: Benchmarking RH (NYSE:RH)

Williams-Sonoma delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 21.5% since reporting. It currently trades at $135.33.

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

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