As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the home furnishing and improvement retail industry, including Home Depot (NYSE:HD) and its peers.

Home furnishing and improvement retailers understand that ‘home is where the heart is’ but that a home is only right when it’s in livable condition and furnished just right. These stores therefore focus on providing what is needed for both the upkeep of a house as well as what is desired for the aesthetics of a home. Decades ago, it was thought that furniture and home improvement would resist e-commerce because of the logistical challenges of shipping a sofa or lawn mower, but now you can buy both online; so just like other retailers, these stores need to adapt to new realities and consumer behaviors.

The 7 home furnishing and improvement retail stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 7.2% below.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Luckily, home furnishing and improvement retail stocks have performed well with share prices up 14.4% on average since the latest earnings results.

Home Depot (NYSE:HD)

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Home Depot reported revenues of $43.18 billion, flat year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.

"The underlying long-term fundamentals supporting home improvement demand are strong," said Ted Decker, chair, president and CEO.

Home Depot achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 10.4% since reporting and currently trades at $382.06.

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

Best Q2: 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 $408.4 million, down 11% year on year, falling short of analysts’ expectations by 1.9%. However, the business still had a strong quarter with an impressive beat of analysts’ earnings estimates and a solid beat of analysts’ gross margin estimates.