Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at La-Z-Boy (NYSE: LZB) 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 satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1% above.

While some home furnishings stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

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. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We were pleased to deliver sales and margin growth in our Wholesale segment for the quarter, primarily driven by our core North America La-Z-Boy wholesale business. In addition, our Retail segment grew delivered sales and written sales for the quarter. On top of this, during the quarter we announced the acquisition of a 15-store network in the Southeast region, further highlighting the multiple levers we have to grow our business. Investments in our Century Vision strategy to grow our Retail store footprint and expand brand reach, combined with soft industry demand, had a downward impact on our margin performance this quarter, and we are actively taking steps to adjust our near-term operations and prudently navigate the current environment. Our iconic brand, vertically integrated business model, and robust balance sheet are foundational to our continued strategic growth and position us to disproportionately benefit when industry tailwinds reemerge.

Unsurprisingly, the stock is down 17.6% since reporting and currently trades at $32.25.

Read our full report on La-Z-Boy here, it’s free for active Edge members.

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 a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $0.88.

Is now the time to buy Purple? Access our full analysis of the earnings results 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 $1.06 billion, down 6.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a decent beat of analysts’ adjusted operating income estimates.

As expected, the stock is down 4.5% since the results and currently trades at $9.10.

Read our full analysis of Leggett & Platt’s results here.

Lovesac (NASDAQ: LOVE)

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

Lovesac reported revenues of $160.5 million, up 2.5% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Lovesac delivered the highest full-year guidance raise among its peers. The stock is down 29.1% since reporting and currently trades at $14.72.

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

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 number surpassed analysts’ expectations by 2.2%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ organic revenue estimates but EPS guidance for next quarter missing analysts’ expectations.

Mohawk Industries scored the biggest analyst estimates beat among its peers. The stock is up 11.2% since reporting and currently trades at $129.

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

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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.