As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the home furnishings industry, including Somnigroup (NYSE: SGI) and its peers.

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 mixed Q3. 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 7.4% on average since the latest earnings results.

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 $2.12 billion, up 63.3% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ Direct revenue estimates and full-year EPS guidance topping analysts’ expectations.

Company Chairman and CEO Scott Thompson commented, "We are pleased to report record sales, profits and operating cash flow in the third quarter, driven by strong operational execution across all of Somnigroup's business units, augmented by progress on our acquisition-related sales and cost synergy initiatives. This quarter's strong results were underpinned by slightly improving bedding industry trends. We are encouraged by our success this quarter and are well positioned to further leverage our leading manufacturing and retailing capabilities, trusted brands and broad omni-channel distribution footprint to capitalize on improvements across markets."

Somnigroup scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 13.1% since reporting and currently trades at $90.06.

Is now the time to buy Somnigroup? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $522.5 million, flat year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 27.8% since reporting. It currently trades at $37.92.

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

Weakest Q3: Lovesac (NASDAQ: LOVE)

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

Lovesac reported revenues of $150.2 million, flat year on year, falling short of analysts’ expectations by 2.5%. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 8.4% since the results and currently trades at $14.89.

Read our full analysis of Lovesac’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 $2.76 billion, up 1.4% year on year. This result beat analysts’ expectations by 1.6%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ revenue estimates but EPS guidance for next quarter missing analysts’ expectations.

The stock is down 15% since reporting and currently trades at $109.56.

Read our full, actionable report on Mohawk Industries here, it’s free for active Edge members.

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 $1.04 billion, down 5.9% year on year. This number topped analysts’ expectations by 1.1%. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Bedding revenue estimates.

Leggett & Platt had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 19.6% since reporting and currently trades at $10.98.

Read our full, actionable report on Leggett & Platt here, it’s free for active Edge members.

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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