
Spotting Winners: Somnigroup (NYSE:SGI) And Home Furnishings Stocks In Q4
As the Q4 earnings season comes to a close, it’s time to take stock of 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 Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
While some home furnishings stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% 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 $1.21 billion, up 3.2% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

Unsurprisingly, the stock is down 8% since reporting and currently trades at $61.32.
Read our full report on Somnigroup here, it’s free .
Best Q4: Lovesac (NASDAQ:LOVE)
Known for its oversized, premium beanbags, Lovesac (NASDAQ:LOVE) is a specialty furniture brand selling modular furniture.
Lovesac reported revenues of $241.5 million, down 3.6% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.

Lovesac delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 30.4% since reporting. It currently trades at $20.75.
Is now the time to buy Lovesac? Access our full analysis of the earnings results here, it’s free .
Slowest Q4: 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 5.3% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.