The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how home furniture retailer stocks fared in Q1, starting with Arhaus (NASDAQ: ARHS).

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 slower Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, home furniture retailer stocks have performed well with share prices up 12.9% on average since the latest earnings results.

Arhaus (NASDAQ: ARHS)

With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ: ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.

Arhaus reported revenues of $311.4 million, up 5.5% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

Interestingly, the stock is up 13% since reporting and currently trades at $9.46.

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

Best Q1: 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 $1.73 billion, up 4.2% year on year, outperforming analysts’ expectations by 4%. The business had a strong quarter with a decent beat of analysts’ EBITDA estimates.

Williams-Sonoma achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.7% since reporting. It currently trades at $180.54.

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

Slowest Q1: Sleep Number (NASDAQ: SNBR)

Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ: SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Sleep Number reported revenues of $393.3 million, down 16.4% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Sleep Number delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 9.9% since the results and currently trades at $8.56.

Read our full analysis of Sleep Number’s results here.

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 $814 million, up 12% year on year. This result missed analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

RH delivered the fastest revenue growth among its peers. The stock is up 21% since reporting and currently trades at $214.33.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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