4 Furniture Stocks to Buy Despite Decline in Big Purchases

The current earnings season has made reluctance among shoppers to make big-ticket purchases prominent. Higher interest rates, stocky inflation, a stagnant housing market, the gradual depletion of savings and changing consumer preferences toward services over goods have led to thissignificant concern among retailers.

“Furniture is more exposed” to this shift in spending pattern than appliances, Shanton Wilcox, U.S. manufacturing lead at PA Consulting, told Yahoo Finance. The manufacturing costs of furniture are more as these are often made in the United States, where costs are higher as opposed to appliances that are normally manufactured abroad, where costs are lower.

Still, some top-ranked furniture stocks including American Woodmark AMWD, MillerKnoll MLKN, Ethan Allen Interiors ETD and HNI HNI arw set to win despite industry woes.


Business Shutdown and Bankruptcies in Furniture Industry

The impact of reduced consumer spending has been felt acutely by some privately held companies in the furniture sector.

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Will Business Momentum Aid Home Depot (HD) Amid Cost Woes?

Home Depot Inc. HD has been gaining from strong demand for home improvement projects, robust housing market trends and ongoing investments. The company has been benefitting from continued strength in both Pro and DIY categories, as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.

The investments and endeavors have helped deliver consistently strong earnings performances. The company reported sales and earnings beat for the ninth straight quarter in second-quarter fiscal 2022. The top and bottom lines also improved year over year. The company’s results represented the highest-ever sales and earnings in its history.

However, Home Depot reported a soft gross margin in the fiscal second quarter, driven by higher supply-chain investments. Higher inventory levels and interest expenses also remain concerning.

Shares of Home Depot have lost 4% in the past three months

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Central Garden & Pet’s (CENT) Buyouts & E-Commerce Fuel Sales

Central Garden & Pet Company CENT has been reinforcing its position in the pet supplies, and lawn and garden supplies space via prudent buyouts. Management has been developing new products, advancing digital capabilities, optimizing supply chain and focusing on marketing activities for a while. CENT is also on track with its Central to Home strategy. Its Pet segment has also been standing out so far.

Shares of this producer and distributor of lawn and garden products, and pet supplier have gained 2.8% in the past year against the industry’s 25% decline. The stock has a VGM Score of A and a Zacks Rank #3 (Hold) at present. For fiscal 2022, the Zacks Consensus Estimate for Central Garden & Pet’s sales is currently pegged at $3.36 billion, suggesting growth of 1.7% from the year-ago period’s corresponding figure.

Let’s Delve Deeper

Unique packaging, point-of-sale displays, logistic capabilities and a high level of

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