Spotting Winners: Leggett & Platt (NYSE:LEG) And Home Furnishings Stocks In Q3

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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at home furnishings stocks, starting with Leggett & Platt .

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 5 home furnishings stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 9.6% on average since the latest earnings results.

Leggett & Platt

Founded in 1883, Leggett & Platt 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 print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Bedding revenue estimates.

President and CEO Karl Glassman commented, "We are pleased to report solid results for the quarter, achieved amid ongoing macroeconomic challenges. Our performance reflects continued progress on strategic priorities and disciplined execution across the company. During the quarter, we successfully completed the sale of our Aerospace business, further sharpening our focus on core operations.

Leggett & Platt delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Interestingly, the stock is up 10.5% since reporting and currently trades at $10.14.

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

Best Q3: La-Z-Boy

The prized possession of every mancave, La-Z-Boy 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 31.8% since reporting. It currently trades at $39.10.

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: Mohawk Industries

Established in 1878, Mohawk Industries 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, exceeding analysts’ expectations by 1.6%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 10.4% since the results and currently trades at $115.50.

Read our full analysis of Mohawk Industries’s results here.

Purple

Founded by two brothers, Purple creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.

Purple reported revenues of $118.8 million, flat year on year. This number lagged analysts' expectations by 3.6%. More broadly, it was actually a strong quarter as it recorded a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Purple pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 2% since reporting and currently trades at $0.83.

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

Somnigroup

Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup 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 result topped analysts’ expectations by 3%. It was a strong quarter as it also logged a solid beat of analysts’ Direct revenue estimates and full-year EPS guidance topping analysts’ expectations.

Somnigroup achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 13.9% since reporting and currently trades at $90.70.

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

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Nyse Order Imbalance 155982.0 Shares On Sell Side

Reuters

Leggett & Platt

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Dj Holder Helen Registers 635 Of Mohawk Industries Inc >Mhk

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'Dupes' Are Just Latest Woe for Home Furnishing Stocks — Barrons.com

Dow Jones Newswires

By Teresa Rivas

In one of my friend's first apartments after college she had an imitation Noguchi coffee table we called the Fauxguchi. She got hers from a flea market, but it has becoming ever easier to buy knockoff furniture and home goods online.

That is at the center of a lawsuit that retailer Williams-Sonoma is bringing against digitally native brand Quince: The former says the latter is selling dupes — or inferior products that bear a suspiciously similar appearance to their own but sell for much less. Quince, which is privately held, didn't return requests for comment.

In one sense it's no surprise that this issue is cropping up in the home goods sphere given that dupes have become increasingly common across a variety of categories online, as Barron's reported last year. Yet they are just the latest in a series of headwinds that has hurt the furnishings and home improvement industry, as evidenced by cratering stock prices across the category.

Home improvement and furnishings retailers surged during the stay-at-home days of the pandemic, but that boom time didn't last. People don't need to replace many kinds of home goods frequently, and inflation makes it even less likely for them to spend on redecorating or remodeling. A stagnant housing market plagued by unaffordability has further depressed demand, as moving is a big reason why consumers spend on this category.

Those factors have weighed on the stocks this year, as a quick tour of the industry shows. While the S&P 500 has soared double-digits again in 2025, Williams-Sonoma is down about 2% since the start of the year. RH has sunk roughly 60% year to date; Lovesac has tumbled more than 40%; and even after a recent pop La-Z-Boy is off about 10%. Arhaus is the only stock in the black, but it is badly trailing the broader market, up just 6%. The same holds for the major home improvement retailers Home Depot and Lowe's, both of which are firmly in the red for 2025.

This lackluster performance comes despite a massive winnowing of the field in recent years, as chains including Noble House, Mitchell Gold, Klaussner Home Furnishings, and Z Gallerie have closed up shop. The company formerly known as Overstock purchased the intellectual property of Bed Bath and Beyond after its bankruptcy, and is slightly ahead of the S&P 500, although it sells apparel and accessories as well.

In fact, Wayfair, another digitally native brand, is the only real outperformer of the group, surging 150% since the start of the year.

In short, Williams-Sonoma and others can hardly afford the incursion of cheaper rivals at a time when inflation-weary consumers are laser focused on value and getting more comfortable with buying even big-ticket home items online.

Relief may not be on the way for upper-end retailers. Any effective housing emergency plan has to address the high cost of buying a home and the continuing shortage of housing stock. Even ongoing interest rate cuts don't guarantee lower mortgage rates.

That means dupes are just one of many issues facing home furnishing and improvement stocks that may leave investors feeling like suckers.

Write to Teresa Rivas at teresa.rivas@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Germany stocks higher at close of trade; DAX up 0.95%

Investing.com

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Investing.com – Germany stocks were higher after the close on Tuesday, as gains in the Technology, Telecoms and Pharmaceuticals & Healthcare sectors led shares higher.

At the close in Frankfurt, the DAX rose 0.95%, while the MDAX index climbed 1.32%, and the TecDAX index climbed 1.00%.

The best performers of the session on the DAX were Heidelberg Materials AG (ETR:HEIG), which rose 6.64% or 13.80 points to trade at 221.60 at the close. Meanwhile, Continental AG O.N. (ETR:CONG) added 3.03% or 1.90 points to end at 64.64 and Daimler Truck Holding AG (ETR:DTGGe) was up 2.97% or 1.07 points to 37.15 in late trade.

The worst performers of the session were Scout24 AG (ETR:G24n), which fell 2.08% or 1.85 points to trade at 87.15 at the close. RWE AG ST O.N. (ETR:RWEG) declined 1.52% or 0.67 points to end at 43.41 and SAP SE (ETR:SAPG) was down 1.28% or 2.65 points to 204.85.

The top performers on the MDAX were Sartorius AG VZO O.N. (ETR:SATG_p) which rose 5.05% to 243.20, RENK Group AG (ETR:R3NK) which was up 4.68% to settle at 50.91 and K+S AG (ETR:SDFGn) which gained 3.98% to close at 11.49.

The worst performers were IONOS Group SE (ETR:IOSn) which was down 1.97% to 27.40 in late trade, LEG Immobilien AG (ETR:LEGn) which lost 1.15% to settle at 64.25 and Tag Immobilien AG (ETR:TEGG) which was down 0.97% to 14.23 at the close.

The top performers on the TecDAX were Sartorius AG VZO O.N. (ETR:SATG_p) which rose 5.05% to 243.20, Evotec AG O.N. (ETR:EVTG) which was up 3.96% to settle at 5.51 and Bechtle AG (ETR:BC8G) which gained 2.84% to close at 39.80.

The worst performers were SMA Solar Technology AG (ETR:S92G) which was down 3.84% to 31.56 in late trade, PNE Wind AG (ETR:PNEGn) which lost 3.19% to settle at 9.72 and IONOS Group SE (ETR:IOSn) which was down 1.97% to 27.40 at the close.

Rising stocks outnumbered declining ones on the Frankfurt Stock Exchange by 410 to 226 and 15 ended unchanged.

Shares in Heidelberg Materials AG (ETR:HEIG) rose to all time highs; up 6.64% or 13.80 to 221.60. Shares in SAP SE (ETR:SAPG) fell to 52-week lows; falling 1.28% or 2.65 to 204.85. Shares in PNE Wind AG (ETR:PNEGn) fell to 3-years lows; falling 3.19% or 0.32 to 9.72.

The DAX volatility index, which measures the implied volatility of DAX options, was up 8.48% to 23.43 a new 3-months high.

Gold Futures for February delivery was up 0.25% or 10.50 to $4,180.50 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January fell 1.87% or 1.10 to hit $57.82 a barrel, while the February Brent oil contract fell 1.69% or 1.06 to trade at $61.66 a barrel.

EUR/USD was unchanged 0.35% to 1.16, while EUR/GBP unchanged 0.25% to 0.88.

The US Dollar Index Futures was down 0.27% at 99.80.

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The Top 5 Analyst Questions From La-Z-Boy’s Q3 Earnings Call

Stock Story

La-Z-Boy

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La-Z-Boy’s third quarter results were well received by investors, with the market responding positively to a combination of strategic portfolio moves and disciplined cost management. Management attributed the steady performance to growth in its core North American upholstery business, operational improvements in its wholesale segment, and ongoing transformation of its distribution and home delivery network. CEO Melinda Whittington noted that new store openings and the acquisition of a 15-store network in the Southeast U.S. added momentum, while a focus on supply chain efficiency contributed to improved inventory management and cash flow.

Is now the time to buy LZB? Find out in our full research report (it’s free for active Edge members).

La-Z-Boy (LZB) Q3 CY2025 Highlights:

Revenue: $522.5 million vs analyst estimates of $516.5 million (flat year on year, 1.2% beat)
Adjusted EPS: $0.71 vs analyst estimates of $0.54 (31.5% beat)
Adjusted EBITDA: $48.92 million vs analyst estimates of $39.35 million (9.4% margin, 24.3% beat)
Revenue Guidance for Q4 CY2025 is $535 million at the midpoint, above analyst estimates of $529.4 million
Operating Margin: 6.9%, in line with the same quarter last year
Locations: 912 at quarter end, up from 895 in the same quarter last year
Market Capitalization: $1.52 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From La-Z-Boy’s Q3 Earnings Call

Anthony Lebiedzinski (Sidoti & Company) asked about geographic differences in sales. CEO Melinda Whittington replied that apart from some volatility in Canada due to tariffs, trends were broadly consistent across regions.
Lebiedzinski also inquired about pricing actions and unit volumes. CFO Taylor Luebke explained that nominal pricing was taken to offset tariffs, with flat North American volumes indicating market acceptance.
Lebiedzinski asked for clarity on friction costs from supply chain and portfolio changes. Luebke clarified these are short-term, tied to the ongoing transformation, and should ease once the transitions are completed.
Robert Griffin (Raymond James) questioned the net sales impact of the 15-store acquisition and business exits. Luebke confirmed a net decrease of $30 million in sales, with corresponding step-up in margins from efficiency gains.
Taylor Zick (KeyBanc Capital Markets) probed demand trends and promotional intensity. Whittington described demand as “choppy” and noted that sharper promotions are being used to drive traffic in a value-sensitive market.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will closely monitor (1) the pace and impact of La-Z-Boy’s supply chain and distribution center consolidation, (2) integration progress and sales performance from the newly acquired 15-store network, and (3) execution on exiting noncore segments and the associated margin improvements. The effectiveness of new retail partnerships and evolving consumer demand patterns will also be key indicators of future performance.

La-Z-Boy currently trades at $36.87, up from $29.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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