Homefurnishing Retail

RH announced the opening of RH Estates, The Gallery on Greenwich Avenue, marking the North American debut of its RH Estates concept and the brand's first freestanding Gallery in the world. The concept was previewed at RH Milan during Salone del Mobile and introduced with the opening of RH London. RH said RH Estates will significantly expand its retail presence across the globe this year, followed by a second freestanding RH Estates Gallery on Melrose Avenue in Los Angeles opening in 2027. RH operates across the United States, Canada, the United Kingdom and Europe, offering collections through its retail galleries, sourcebooks and online at RH.com, with integrated hospitality experiences in galleries throughout the United States and internationally.

Arhaus reported second quarter results on August 6 that beat its own guidance on nearly every line, with net revenue for the quarter ended June 30 climbing 7.4% to $385 million. Comparable Written Sales, which track new orders rather than completed deliveries, jumped 12.5%, a sharp reversal from a 5.7% decline in the first quarter of 2026, pushing the year-to-date figure positive at 2.8%, while client deposits grew 11.8% from the end of 2025 to $264 million as of June 30. A large piece of the quarter's profit growth came from a one-time tariff recovery rather than improved operations: of the $23.8 million tariff benefit that flowed through cost of goods sold, $15.5 million was tied to inventory already sold before April 2026, and the company has now collected the full $37.8 million it sought in tariff refunds plus $1.3 million in interest as of August 6. Selling, general and administrative expenses grew 16.1% to $118 million, more than double the pace of revenue growth, and free cash flow for the first six months of 2026 fell to $22.9 million from $39.8 million a year earlier, even as reported net income rose. Arhaus carries no long-term debt, completed four showroom projects in the quarter including new locations in Ashburn, Virginia, and Ontario, California, and still expects 10 to 14 total showroom projects in 2026, while Comparable Delivered Sales are up just 1.4% for the year with third-quarter guidance ranging from negative 1% to positive 5%.

RH reported second-quarter GAAP net revenues of $922.2 million, up 2.6% year over year and above the high end of its guidance, with a normalized adjusted EBITDA margin of 13.4% that also exceeded the high end of guidance. The company generated $72.3 million in cash for the quarter, including free cash flow and a $42 million distribution from Aspen joint ventures, and recognized a $55.1 million tariff benefit in Q2 with an additional $13.9 million expected in the second half. For fiscal 2026, RH guided to revenue growth of 5.5% to 7%, an adjusted EBITDA margin of 15% to 16.2%, and free cash flow, asset sales, and distributions of $300 million to $400 million, while Q3 revenue growth is expected at 5% to 6% and Q4 growth at 16.1% to 21.2%. The company said its international expansion drag should fall from 450 basis points in the first half of 2026 to 250 basis points in the second half, or 340 basis points for the full year, before dropping to 150 basis points in 2027. RH also highlighted the launch of RH Estates, whose average price point is 45% higher than the existing assortment and which is expected to represent 50% of the offering within five years, and said its London design pipeline reached almost $7 million in the first eight weeks. Adjusted capex is expected to decline from $240 million to $260 million in 2026 to $175 million to $200 million in 2027, while new gallery opening costs fall from $48 million in 2026 to $18 million in 2027.

Kroger trimmed its annual sales guidance amid fierce competition for grocery spending. Oracle shares moved higher after the software company's results featured better-than-expected cloud revenue on strong AI demand. Restoration Hardware shares were also on the move after the home furnishing retailer's quarterly earnings beat despite a weaker housing market and consumer spending environment.

RH reported GAAP net revenues of $922.2 million for its second quarter, exceeding the high end of its guidance with growth of 2.6% versus last year, and issued an updated fiscal 2026 outlook calling for revenue growth of 5.5% to 7% and an adjusted EBITDA margin of 15% to 16.2%. Chairman and CEO Gary Friedman said the company recognized a tariff benefit of $55.1 million in the second quarter and expects an additional $13.9 million in the second half, which it plans to use to offset $50 million of unplanned supply chain cost increases tied to a sustained spike in oil prices from the conflict in the Middle East. For the third quarter, RH guided to revenue growth of 5% to 6% and an adjusted EBITDA margin of 12.5% to 13.5%, while the fourth quarter outlook calls for revenue growth of 16.1% to 21.2% and an adjusted EBITDA margin of 19.7% to 22.9%, including an approximate negative 340 basis point adjusted EBITDA margin impact from preopening and start-up costs for international expansion. Friedman said the introduction of RH Estates has the potential to double the total addressable market of the RH brand, and that the company predicts it will represent 50% of its offering at that time. Chief Financial Officer Jack Preston said demand is in excess of revenue growth as the Estates business builds and ramps, and that RH has no more European openings in 2027.

RH reported quarterly earnings of $2.7 per share, beating the Zacks Consensus Estimate of $0.42 per share, though that compares to earnings of $2.93 per share a year ago. The result marked an earnings surprise of +542.86%, and the furniture and housewares company posted revenues of $922.15 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.97% and up from year-ago revenues of $899.15 million. RH has now topped consensus revenue estimates three times over the last four quarters and surpassed consensus EPS estimates two times over that same span. Ahead of the release, the estimate revisions trend for RH was mixed, translating into a Zacks Rank #3 (Hold), and the current consensus stands at $2.89 per share on $964 million in revenues for the coming quarter and $4.66 on $3.62 billion in revenues for the current fiscal year. RH shares have lost about 22.2% since the beginning of the year versus the S&P 500's gain of 11.6%.

RH reported second-quarter revenue of $922.2M, up 2.6% and $5.9M above the consensus estimate, sending shares up 8.2% in postmarket trading to $145.00. Adjusted EBITDA came in at $178.5M, including a $55.1M tariff benefit, and the company said it expects to recognize an additional $13.9M tariff benefit in the second half of the year to offset $50M of unplanned supply-chain cost increases tied to the spike in oil prices from the conflict in the Middle East. For the third quarter, RH guided to revenue growth of 5.0% to 6.0%, and for the full year it expects growth of 5.5% to 7.0%. The company also said adjusted capital expenditures are expected to fall from $240M to $260M in 2026 to $175M to $200M in 2027, and outlined a new real estate strategy led by RH Compound, a multi-building shopping experience under construction in Naples, Florida, scheduled to open at the end of 2026 or beginning of 2027, with another planned in Aventura, Florida, for 2027. Short interest in RH stands at 26.3% of the total float, against a 52-week range of $106.30 to $248.44.

Wayfair shares have fallen 12.1% since its second-quarter earnings report, underperforming the S&P 500. The company beat estimates with earnings of 95 cents per share versus the 94-cent consensus, and revenue rose 7.5% year over year to $3.52 billion, driven by U.S. demand and market share gains. Adjusted EBITDA margin expanded 60 basis points to 6.9%, the best since 2021. For the third quarter, Wayfair expects high single-digit revenue growth and an adjusted EBITDA margin of 6% to 7%. Analysts have revised estimates upward, and the stock holds a Zacks Rank #1 (Strong Buy).

Williams-Sonoma reported a strong second quarter, with comparable brand revenue growth of 6.2% and total revenue growth of 6.7%, prompting the company to raise its full-year outlook. The company also received $200 million in tariff refunds, of which $174 million was recognized as income in the quarter, and it plans to reimburse vendors and contribute to employee 401(k)s. For fiscal 2026, Williams-Sonoma now expects comparable brand revenue growth of 4% to 6.5% and an operating margin of 17.8% to 18.2%. The company's CEO, Laura Alber, highlighted broad-based strength across all brands, including a 5.1% comp at Pottery Barn, a 7.6% comp at Williams Sonoma, and a 6.4% comp at West Elm, as well as double-digit growth in emerging brands and a 14.5% increase in B2B sales.

Williams-Sonoma reported stronger demand across all major brands in fiscal 2026's second quarter, with comparable brand revenue up 6.2% and net revenue up 6.7% to $1.96 billion, but its non-GAAP operating margin fell 60 basis points to 17.3%. The company adjusted for $167.8 million in tariff-refund income, a $47.5 million provision for vendor reimbursements, and a $10 million employee recognition cost to arrive at that margin. Pottery Barn comparable revenue grew 5.1%, West Elm rose 6.4%, Williams Sonoma increased 7.6%, and Pottery Barn Kids and Teen advanced 3.5%. Williams-Sonoma raised its fiscal 2026 guidance to net-revenue growth of 4.7% to 7.2% and comparable brand revenue growth of 4.0% to 6.5%, while expecting a non-GAAP operating margin of 17.8% to 18.2% for the full year. The company ended the quarter with about $1.03 billion in cash and generated $696 million in operating cash flow during the first half.

Shares of Abercrombie & Fitch Co. surged 35.7% after the company reported second-quarter fiscal 2026 earnings of $2.42 per share, beating the Zacks Consensus Estimate of $1.95 per share. Kohl's Corporation's shares rose 1.5% after it reported second-quarter fiscal 2026 earnings of $1.28 per share, surpassing the Zacks Consensus Estimate of $0.55 per share. Shares of The J. M. Smucker Company jumped 4.3% after the company reported first-quarter fiscal 2027 earnings of $3.24 per share, outpacing the Zacks Consensus Estimate of $2.21 per share. Williams-Sonoma, Inc.'s shares gained 1.2% after the company reported second-quarter fiscal 2026 earnings of $2.1 per share, beating the Zacks Consensus Estimate of $2.05 per share.

Williams-Sonoma (NYSE:WSM) beat Wall Street's revenue expectations in Q2 CY2026, with sales up 6.7% year on year to $1.96 billion, and non-GAAP profit of $2.10 per share, 1.2% above consensus. The company raised its annual outlook, citing broad-based growth across all brands and channels, successful product collaborations, and supply chain improvements. CEO Laura Alber highlighted strength in both DTC and retail, with positive comps in furniture and non-furniture, and noted the company is gaining market share in a flat industry. Management also pointed to AI-driven tools like the Otto shopping assistant for Pottery Barn and Oliver for Williams Sonoma, which boosted engagement and conversion, with Oliver generating a 620% increase in revenue from assisted interactions. The B2B segment grew 14.5%, and all major banners posted positive comparable sales. The company's operating margin expanded to 22.9% from 17.9% a year ago, and it ended the quarter with 508 locations.

Williams-Sonoma raised its full-year guidance after reporting strong second-quarter results, with comparable brand revenue growth accelerating to 6.2% from 4.8% in Q1 and total revenue up 6.7% to $1.96 billion. The company now expects comparable brand revenue growth of 4% to 6.5% and an operating margin of 17.8% to 18.2% for fiscal 2026. Diluted EPS rose 5% to $2.10, while gross margin declined 160 basis points to 45.5% due to tariff impacts, which also pressured merchandise margins down 230 basis points. All brands posted positive comps, including Pottery Barn at 5.1%, Williams-Sonoma at 7.6%, West Elm at 6.4%, and children's businesses at 3.5%, with B2B growing 14.5% on record demand. The company received $200 million in IEPA tariff refunds, recognizing $174 million into income, and paid $90 million in dividends, a 15% increase year-over-year.

Williams-Sonoma reported second-quarter 2026 results with sales rising to US$1,959.76 million and net income to US$338.11 million, alongside higher earnings per share versus a year earlier, and raised its full-year guidance on the back of broad-based comparable brand revenue growth. The company now expects 4% to 6.5% comparable brand revenue growth and a non-GAAP operating margin of 17.8% to 18.2% for the full year, even as management flagged tariff-driven margin pressures and elevated cost headwinds. This earnings beat and outlook upgrade support the investment thesis that Williams-Sonoma can continue gaining share in home goods while protecting margins, but they also sharpen the tension between pricing power and supply-chain efficiency versus rising input and tariff costs. The raised guidance shows confidence that cost headwinds can be absorbed without derailing earnings, though prolonged tariffs and elevated costs remain key risks. The company's narrative projects $9.1 billion revenue and $1.3 billion earnings by 2029, requiring 4.8% yearly revenue growth and an earnings increase of about $0.2 billion from $1.1 billion today, with a fair value estimate of $212.63, implying a 9% downside to the current price.

Williams-Sonoma, Inc. raised its full-year guidance after reporting broad-based growth in the second quarter of fiscal 2026, with every brand delivering positive comparable sales. The company now expects comparable brand revenue growth of 4% to 6.5% and operating margin of 17.8% to 18.2%, up from previous guidance. B2B sales surged 14.5% to a record, while Williams-Sonoma and West Elm posted comps of 7.6% and 6.4%, respectively, and Pottery Barn accelerated to 5.1%. The company recognized $174 million in tariff refunds, reimbursed $47 million to vendors, and made a $10 million contribution to employee 401(k) accounts. Management plans to transition to 1% to 3% annual store unit growth starting in fiscal 2027, and reiterated a path to $2 billion in B2B revenue.

Williams-Sonoma reported accelerating second-quarter fiscal 2026 sales growth and raised its full-year revenue and operating-margin outlook, citing market-share gains in a flat home furnishings industry. Comparable brand revenue rose 6.2%, accelerating from 4.8% in the first quarter, while net revenue increased 6.7% to $1.96 billion, with every brand posting positive comparable sales and B2B revenue growing 14.5%. Gross margin fell 160 basis points to 45.5% due to tariffs, but the company received $200 million in tariff refunds, resulting in a net $117 million benefit to GAAP pretax results. Management expects tariff pressure to moderate in the second half. The company now expects comparable revenue growth of 4% to 6.5%, total revenue growth of 4.7% to 7.2%, and an operating margin of 17.8% to 18.2%. CEO Laura Alber highlighted strong performance across brands, with Pottery Barn comparable sales up 5.1%, Williams Sonoma up 7.6%, West Elm up 6.4%, and Pottery Barn kids up 3.5%. The company also noted that its AI shopping assistant Olive saw engagement rise 700% and revenue associated with it increase 620%.

Arhaus is making strategic investments in technology licensing and other costs to support its broader business transformation, totaling approximately $3 million in the second quarter. The company successfully launched its Transportation Management System during the quarter, while its Enterprise Resource Planning and Order Management System implementations remain on track for a February 2027 go-live. Arhaus is also pulling forward the implementation of its new modern point-of-sale platform into the fourth quarter of 2026, ahead of its original timeline. Management expects TMS benefits to contribute to its margin outlook during the balance of the year, projecting approximately $4 million to $5 million of annualized run-rate savings once the system is fully operational. The company expects $4 million to $6 million of incremental technology spending versus its initial digital transformation plans, with the accelerated POS rollout adding $2 million to $3 million to this year's P&L and another $2 million to $3 million deployed toward additional IT resources.

Wayfair reported second-quarter net revenue of $3.5 billion, up 7.5% from a year earlier, while U.S. revenue jumped 8.7%, even as the broader furniture industry barely returned to growth. Orders increased 6%, active customers rose 3.3%, and the online furniture retailer generated $301 million in free cash flow. CEO Niraj Shah said the company has maintained a high-single-digit spread between its U.S. growth and the broader category since last fall, with demand disproportionately coming from higher-income consumers. Bank of America raised its price target on Wayfair to $140 from $105 and increased its estimated 2027 revenue to $14.8 billion from $14.2 billion. Meanwhile, luxury home-furnishings retailer RH reported first-quarter revenue fell 1.7% to $800.3 million, while Williams-Sonoma's comparable brand revenue increased 4.8% in its first quarter.

Haverty Furniture reported second-quarter 2026 earnings per share of $0.32, doubling the $0.16 from a year ago, as net sales rose 7.7% to $194.9 million with comparable store sales up 8%. Total written sales increased 12.6%, with comps up 12.3%, and gross margin expanded 60 basis points to 61.4%. The company received $2.1 million in IEEPA tariff refunds, of which $1.5 million reduced cost of goods sold, and expects potential future refunds from third-party suppliers to help offset cost pressures from fuel increases and new Section 301 tariffs. Haverty opened two new stores during the quarter, plans six more in the second half of the year, and reaffirmed full-year gross margin guidance of 60.5% to 61%.

Wayfair reported 7.5% year-over-year revenue growth in the second quarter of 2026, driven by an 8.7% increase in its U.S. segment. CEO Niraj Shah said orders rose 6% from a year earlier and more than 12% sequentially, marking the strongest second-quarter sequential order growth since 2020. The company posted a 30.0% gross margin, $242 million in adjusted EBITDA, and $301 million in free cash flow, its best quarterly cash generation since Q2 2020. Wayfair's luxury platform Perigold grew more than 35% year over year and now generates slightly more than $400 million in annual sales. For the third quarter, Wayfair forecast high-single-digit revenue growth and an adjusted EBITDA margin of 6% to 7%.

Arhaus reported record second-quarter net revenue of approximately $385 million, up 7.4% from a year earlier, and raised its full-year adjusted EBITDA guidance to $160 million to $171 million. The luxury furniture retailer recognized a $23.8 million tariff-recovery benefit, which lifted gross margin to 44.7% and adjusted EBITDA to $70 million. Excluding the $15.5 million portion of the benefit tied to inventory sold before April 2026, adjusted EBITDA would have declined 8.9% year over year. The company maintained its 2026 revenue outlook of $1.43 billion to $1.47 billion and cited strong demand for larger home projects, upholstery, and outdoor products. Arhaus also plans to open four to six new showrooms and accelerate its point-of-sale rollout while pursuing cost savings to offset tariffs and higher shipping expenses.

Arhaus reported second quarter 2026 net revenue of $385 million, a 7.4% increase year-over-year and above the high end of its guidance range. Net and comprehensive income rose 13.1% to $40 million, while adjusted EBITDA increased 16.8% to $70 million, both figures including a $23.8 million benefit from IEEPA tariff recoveries. Comparable Delivered Sales grew 4.0% and Comparable Written Sales jumped 12.5% in the quarter. The company ended the period with 109 showrooms across 31 states, no long-term debt, and cash and cash equivalents of $226 million. For the full year 2026, Arhaus maintained its net revenue outlook of $1.43 billion to $1.47 billion and raised its net income and adjusted EBITDA guidance to reflect the tariff recovery benefit.

Wayfair shares rose 11% on Friday after the home-furnishing e-commerce company announced it is cutting 13% of its global workforce. CEO Niraj Shah said the company went overboard in hiring during a strong economic period, noting that revenue jumped from $9.1 billion to $14.1 billion in 2020. This is the third round of layoffs, following a 5% cut in August 2022 and a 10% cut in January 2023. Wayfair expects to incur $70 million to $80 million in costs in the first quarter of 2024 but anticipates annualized savings of at least $280 million. The company is aiming for a 10% adjusted EBITDA margin, up from about 1% on a trailing-12-month basis, as growth has largely stalled.

Wayfair guided for high single-digit revenue growth in the third quarter with an adjusted EBITDA margin in the 6% to 7% range. CFO Kate Gulliver said the guidance does not contemplate a change in the macro environment and expects gross margin at the lower end of the 29.5% to 30.5% range as the company invests in customer experience. CEO Niraj Shah highlighted second-quarter net revenue growth of 7.5%, driven by a 6% increase in orders and nearly 9% U.S. revenue growth, while specialty retail brands grew nearly 20% and luxury brand Perigold grew more than 35% to over $400 million in annual sales. The company generated $242 million of EBITDA in the second quarter for a 6.9% margin, the best since 2021, and reported $301 million of free cash flow. Management expressed confidence in reaching double-digit margins over time and noted plans to shift toward share repurchases after redeeming convertible bonds.

Maisons du Monde shareholders overwhelmingly approved the resolutions relating to the restructuring transactions contemplated by the conciliation agreement at the combined general meeting on 27 July 2026. Shareholders representing 73.519% of the company's share capital were present or represented. The approved resolutions include the delegation of authority to the Board of Directors to decide on a capital increase reserved for a consortium of new investors comprising Alteri Investors and Eicos Investment Group, as well as the appointment of Alteri Investors and Eicos Investment Group as directors subject to the completion of the reserved capital increase. The resolution relating to capital increases reserved for employees was not approved.

RH has appointed Ryan Hassanein as its new Chief Legal and Compliance Officer. He will oversee all legal and compliance functions, including product safety and vendor compliance, and will report to Chairman and CEO Gary Friedman as a member of the Executive Leadership Team. Hassanein joins from McKesson Corporation, where he spent over ten years and served on the Chief Legal Officer's leadership team, handling litigation, regulatory, compliance, government relations, supply chain, and technology matters. Friedman stated that Hassanein's experience at one of the world's largest and most sophisticated companies from a legal and compliance perspective makes him an outstanding addition as RH continues to optimize its business and expand internationally.

Vega announced that its counterparty banks will purchase e&'s entire Vodafone stake of 3.94 billion shares, representing 16.21% of Vodafone's share capital and 17.13% of its voting rights, at £1.104792 per share for hedging purposes, with settlement expected soon. Separately, Vega has entered into an additional financial instrument relating to an additional 2.74% of Vodafone's voting rights. Subject to regulatory approvals, the financial instruments are expected to physically settle, giving Vega approximately 18.80% of Vodafone's share capital and 19.87% of its voting rights, likely by year-end. Vega described its investment as a long-term, strategic minority shareholding and reiterated it does not intend to make an offer for Vodafone, remaining bound by Rule 2.8 of the City Code on Takeovers and Mergers.

Zacks Investment Research highlights Ford Motor, Wayfair, and Cisco Systems as Zacks Rank #1 Strong Buy stocks heading into the second-quarter earnings season. S&P 500 earnings are expected to jump 24% year-over-year on 11.3% revenue growth. Ford, reporting July 28, 2026, trades at a forward P/E of 8.2 with a 4.4% dividend yield and expected 50.5% earnings growth in 2026. Wayfair, expanding into physical stores, has seen two estimate increases in 60 days and expects 11.9% earnings growth in 2026, with shares up 26.6% in the past month. Cisco, up 53.6% in 2026, has nine estimate increases for fiscal 2026 and expects 12.3% earnings growth, though it trades at a forward P/E of 26.6 and a PEG ratio of 2.4.

A $1000 investment in Williams-Sonoma made in June 2016 would be worth $9,110.26 as of June 29, 2026, representing an 811.03% gain excluding dividends but including price increases. Over the same period, the S&P 500 gained 260.95% and gold rose 196.91%. The company's performance has been supported by broad-based comparable growth across brands and channels, with comparable brand revenues up 4.8% year over year in the first quarter of fiscal 2026. Analysts note that Williams-Sonoma continues to benefit from its digital-first model, proprietary product portfolio, and AI-enabled customer engagement tools, though margins remain sensitive to tariff flow-through and macro volatility.