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 Q1. Today, we are looking at home furnishings stocks, starting with La-Z-Boy (NYSE: LZB).

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 satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.8% above.

Thankfully, share prices of the companies have been resilient as they are up 8.9% on average since the latest earnings results.

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 $570.9 million, up 3.1% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ EPS estimates.

La-Z-Boy scored the biggest analyst estimates beat of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 0.5% since reporting and currently trades at $37.64.

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

Best 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 $104.2 million, down 13.2% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.

Purple achieved the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $0.76.

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

Weakest Q1: 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 $1.60 billion, up 34.9% year on year, falling short of analysts’ expectations by 1.8%. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a miss of analysts’ Direct revenue estimates.

Somnigroup delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 21.8% since the results and currently trades at $73.84.

Read our full analysis of Somnigroup’s results here.

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 $2.53 billion, down 5.7% year on year. This number came in 0.9% below analysts' expectations. Overall, it was a slower quarter as it also recorded EPS guidance for next quarter missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.

The stock is up 2.6% since reporting and currently trades at $109.38.

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

Lovesac (NASDAQ: LOVE)

Known for its oversized, premium beanbags, Lovesac (NASDAQ: LOVE) is a specialty furniture brand selling modular furniture.

Lovesac reported revenues of $138.4 million, up 4.3% year on year. This print topped analysts’ expectations by 0.7%. It was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 5.1% since reporting and currently trades at $19.51.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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

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