As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at home furnishings stocks, starting with Mohawk Industries (NYSE: MHK).
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 5 home furnishings stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% above.
Luckily, home furnishings stocks have performed well with share prices up 11.4% on average since the latest earnings results.
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 $2.80 billion, flat year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations.
Commenting on the Company’s second quarter, Chairman and CEO Jeff Lorberbaum stated, “In challenging conditions across our regions, our results reflect the impact of our ongoing operational improvements, cost containment actions and market development initiatives."
Mohawk Industries achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 16.7% since reporting and currently trades at $135.42.
Is now the time to buy Mohawk Industries? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $105.1 million, down 12.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Purple delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 26.8% since reporting. It currently trades at $1.08.
Is now the time to buy Purple? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $492.2 million, flat year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 7.5% since the results and currently trades at $36.18.
Read our full analysis of La-Z-Boy’s results here.
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 $1.06 billion, down 6.3% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but .
Leggett & Platt had the weakest full-year guidance update among its peers. The stock is up 3.6% since reporting and currently trades at $9.87.
Read our full, actionable report on Leggett & Platt here, it’s free.
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 $1.88 billion, up 52.5% year on year. This result came in 0.6% below analysts' expectations. Zooming out, it was a mixed quarter as it also logged but .
Somnigroup delivered the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 17.6% since reporting and currently trades at $86.52.
Read our full, actionable report on Somnigroup here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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