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 furnishing and improvement retail stocks fared in Q4, starting with Lowe's (NYSE:LOW).

Home furnishing and improvement retailers understand that ‘home is where the heart is’ but that a home is only right when it’s in livable condition and furnished just right. These stores therefore focus on providing what is needed for both the upkeep of a house as well as what is desired for the aesthetics of a home. Decades ago, it was thought that furniture and home improvement would resist e-commerce because of the logistical challenges of shipping a sofa or lawn mower, but now you can buy both online; so just like other retailers, these stores need to adapt to new realities and consumer behaviors.

The 7 home furnishing and improvement retail 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 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 26% since the latest earnings results.

Lowe's (NYSE:LOW)

Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.

Lowe's reported revenues of $18.55 billion, flat year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates.

"Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives," said Marvin R. Ellison, Lowe's chairman, president and CEO.

Lowe's delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 8.8% since reporting and currently trades at $221.25.

Read our full report on Lowe's 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.

Williams-Sonoma achieved the biggest analyst estimates beat among its peers. The stock is down 14.4% since reporting. It currently trades at $147.45.

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

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, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.

As expected, the stock is down 31% since the results and currently trades at $172.55.

Read our full analysis of RH’s results here.

Home Depot (NYSE:HD)

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Home Depot reported revenues of $39.7 billion, up 14.1% year on year. This result topped analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.

Home Depot pulled off the fastest revenue growth among its peers. The stock is down 7.8% since reporting and currently trades at $353.

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

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 $376.8 million, down 12.3% year on year. This number lagged analysts' expectations by 3.3%. It was a slower quarter as it also recorded a significant miss of analysts’ EBITDA estimates.

Sleep Number had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 59.1% since reporting and currently trades at $5.28.

Read our full, actionable report on Sleep Number 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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