The furniture industry is starting to take on the look of a college dorm room. Earnings reports and earnings warnings are crammed in from every angle, but without a whole lot of feng shui. Here's a quick rundown of the last few days' worth of news -- in chronological order, so that there will be at least some order.
Bed Bath & Beyond
Last week, home furnishings star Bed Bath & Beyond
The same day as Bed Bath issued its earnings warning, furniture retailer Haverty
As I described on Monday, Hooker Furniture's
On Tuesday, Santeramo-based sofa-maker Natuzzi
Furniture Brands International
In contrast, Furniture Brands
What does it all mean?
But does the fact that the most recent news is the most optimistic mean that the furniture industry has finally turned the corner? The continued housing slump says otherwise. And of course, a 12% sales decline is still a decline. No, I'm afraid all we saw yesterday was a variation on the sage old advice: "Hope for the best, but prepare for the worst." One month ago, FBI prepared us for the worst. Yesterday, it gave us a little hope that the worst, at least, may be avoided.
Viewed in the context of the 5% haircut that Bed Bath shares received in the wake of its earnings warning, and the 15% hit that Hooker took after reporting its earnings news, FBI appears to have made the right decision -- at least from a PR perspective -- and saw its shares rise about 3% in after-market trading in reward. But we're not out of the woods yet.
Follow FBI's progress in:
- Furniture Branded
- Faded Furniture Brands: Fool by Numbers
- Furniture Brands Struggles
- Furniture Brands Feels the Pain: Fool by Numbers