The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Williams-Sonoma (NYSE: WSM) and the rest of the home furniture retailer stocks fared in Q3.

Furniture retailers understand that ‘home is where the heart is’ but that no home is complete without that comfy sofa to kick back on or a dreamy bed to rest in. These stores focus on providing not only what is practically needed in a house but also aesthetics, style, and charm in the form of tables, lamps, and mirrors. Decades ago, it was thought that furniture would resist e-commerce because of the logistical challenges of shipping large furniture, but now you can buy a mattress online and get it in a box a few days later; so just like other retailers, furniture stores need to adapt to new realities and consumer behaviors.

The 4 home furniture retailer stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Luckily, home furniture retailer stocks have performed well with share prices up 20.7% on average since the latest earnings results.

Best Q3: Williams-Sonoma (NYSE: WSM)

Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE: WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.

Williams-Sonoma reported revenues of $1.88 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ EBITDA estimates.

“We are proud to deliver strong results in the third quarter of 2025 with an accelerating positive top-line comp and continued outperformance in profitability. In Q3, our comp came in above expectations at 4.0%, with another quarter of positive comps in all brands. Operating margin came in at 17.0%, expanding 10 basis points, with earnings per share of $1.96, growing 4.8% year-over-year. We are encouraged by our continued strong performance, and are confident in our outlook for Q4. We are reiterating full year comparable brand revenue growth to be in the range of 2% to 5%, and we are raising our bottom-line guidance to an operating margin of 17.8% to 18.1%,” said Laura Alber, President and Chief Executive Officer.

Interestingly, the stock is up 11.8% since reporting and currently trades at $202.17.

Is now the time to buy Williams-Sonoma? Access our full analysis of the earnings results here, it’s free.

Arhaus (NASDAQ: ARHS)

With an aesthetic that features natural materials such as reclaimed wood, Arhaus (NASDAQ: ARHS) is a high-end furniture retailer that sells everything from sofas to rugs to bookcases.

Arhaus reported revenues of $344.6 million, up 8% year on year, outperforming analysts’ expectations by 2%. The business had a satisfactory quarter with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

Arhaus pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.4% since reporting. It currently trades at $8.55.

Is now the time to buy Arhaus? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Sleep Number (NASDAQ: SNBR)

Known for mattresses that can be adjusted with regards to firmness, Sleep Number (NASDAQ: SNBR) manufactures and sells its own brand of bedding products such as mattresses, bed frames, and pillows.

Sleep Number reported revenues of $342.9 million, down 19.6% year on year, falling short of analysts’ expectations by 5.4%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Sleep Number delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 59.8% since the results and currently trades at $8.79.

Read our full analysis of Sleep Number’s results here.

RH (NYSE: RH)

Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.

RH reported revenues of $883.8 million, up 8.9% year on year. This print met analysts’ expectations. However, it was a softer quarter as it recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

RH delivered the fastest revenue growth among its peers. The stock is up 23.6% since reporting and currently trades at $189.45.

Read our full, actionable report on RH here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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