Furniture/Furnishings Weekly
Earnings reports dominated the furniture/furnishings news for the short four-day work week ended February 23. HNI’s 4Q23 highlighted our coverage universe. Adjusted EPS was $0.98 vs. our estimate of $0.84. Residential Building Products delivered a surprisingly strong operating margin at 22.3%. Workplace Furnishings’ adjusted margins rose 690 bps to 9.5%. Revenue in the segment was slightly soft relative to estimates. Residential retailer Haverty’s Furniture reported 4Q EPS of $0.90, a miss relative to the $0.99 expected. Revenue was $211 million, about $22 million below expectations. Management comments focused on expense control and sustaining gross margin. Internet retailer Wayfair reported ($0.11), better than the ($0.15) expected, and dramatically better than the ($1.71) a year ago. Analysts now forecast a profit of $0.95 in 2024, up from $0.70 a week ago. Wayfair had announced a workforce reorganization. About 1,650 employees will lose their jobs. La-Z-Boy missed EPS at $0.67 versus the $0.72 expected, and revenue at $500 million versus the $523 million expected. Management noted that winter weather affected traffic. It remains positive intermediate to long term, averring that housing activity will pick up. Floor and Décor reported EPS of $0.34 versus the $0.26 expected, and a slight revenue beat. PROG Holdings, a rent-to-own company, reported EPS of $0.72 versus the $0.68 expected, initiated a dividend, and announced a share buyback. Upbound Group, another rent-to-own company, reported EPS of $0.81 versus the $0.77 expected. Sleep Number reported ($0.58) versus the ($0.88) expected. FY24 estimates fell to a loss. In other items, the January existing home sales (seasonally adjusted) ticket slightly higher to 4 million. Existing home sales are tied to residential furniture demand. The chart on page 5 tracks sales for the past five years.
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