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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

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<ul><li>It was a mixed week for furniture and furnishings stocks, as earnings results and company-specific factors seemed to dominate trading for several issuers (LOVE, RH, BYON) while the market waits for the Fed’s next move.</li><li>The WTR Commercial/Contract Furniture Index was down 3.7%, the Residential Manufacturers &amp; Suppliers Index was down 4.8%, the Home Goods Retailers Index was up 1.3%, and the Mass Retailers Index was down 0.1% for the week, while the large-cap indexes were flat and the R2K was down 2.0%.</li><li>RH up big after demonstrating market share gains in its latest quarter and accelerating demand trends in the core business. </li></ul>

It was a mixed week for furniture and furnishings stocks, as earnings results and company-specific factors seemed to dominate trading for several issuers (LOVE, RH, BYON) while the market waits for the Fed’s next move.The WTR Commercial/Contract Furniture Index was down 3.7%, the Residential Manufacturers &amp; Suppliers Index was down 4.8%, the Home Goods Retailers Index was up 1.3%, and the Mass Retailers Index was down 0.1% for the week, while the large-cap indexes were flat and the R2K was down 2.0%.RH up big after demonstrating market share gains in its latest quarter and accelerating demand trends in the core business. 

Furniture/Furnishings Weekly - December 16, 2024

<ul><li>The market was of two minds the past week, with big caps outperforming small caps and furniture and furnishings retailers outperforming manufacturers.</li><li>The WTR Commercial/Contract Furniture Index was down 2.6% and the Residential Manufacturers &amp; Suppliers Index was down 0.2%, while the Home Goods Retailers Index was up 2.9% and the Mass Retailers Index was up 5.4%.</li><li>The S&amp;P 500 and DJ30 were both up 0.7%, while the R2K fell 1.2%.</li></ul>

The market was of two minds the past week, with big caps outperforming small caps and furniture and furnishings retailers outperforming manufacturers.The WTR Commercial/Contract Furniture Index was down 2.6% and the Residential Manufacturers &amp; Suppliers Index was down 0.2%, while the Home Goods Retailers Index was up 2.9% and the Mass Retailers Index was up 5.4%.The S&amp;P 500 and DJ30 were both up 0.7%, while the R2K fell 1.2%.

Furniture/Furnishings Weekly Black Friday; Furniture Demand Still Weak

Equity Bottom-Up

<ul><li>Persistent macro headwinds during 2QFY25 affected revenue and earnings as management continues to execute against its restructuring plan to restore profitability at lower revenue thresholds.</li><li>Adjusted EPS of ($0.28) was $0.10 lower than our estimate and $0.09 lower than the prior year, mainly on lower-than-expected revenue in upholstery as tough industry conditions persist.</li><li>The weak revenue picture in upholstery was unexpected, but not surprising; it remains tough out there.</li></ul>

Persistent macro headwinds during 2QFY25 affected revenue and earnings as management continues to execute against its restructuring plan to restore profitability at lower revenue thresholds.Adjusted EPS of ($0.28) was $0.10 lower than our estimate and $0.09 lower than the prior year, mainly on lower-than-expected revenue in upholstery as tough industry conditions persist.The weak revenue picture in upholstery was unexpected, but not surprising; it remains tough out there.

Culp, Inc. - 2QFY25 Adjusted EPS Of ($0.28) As Macro Headwinds Persist

<ul><li>As earnings season drew to a close, it was the Home Goods Retailers, led by WSM, that grabbed investors’ attention.</li><li>The Water Tower Research Commercial/Contract Furniture Index was up 2.2%, the Residential Manufacturers &amp; Suppliers Index was up 0.7%, the Home Goods Retailers Index was up 16.5%, and the Mass Retailers Index was down 0.1% for the week.</li><li>The S&amp;P 500 and DJ30 were both up 1.3%, while the R2K was up 4.3%.</li></ul>

As earnings season drew to a close, it was the Home Goods Retailers, led by WSM, that grabbed investors’ attention.The Water Tower Research Commercial/Contract Furniture Index was up 2.2%, the Residential Manufacturers &amp; Suppliers Index was up 0.7%, the Home Goods Retailers Index was up 16.5%, and the Mass Retailers Index was down 0.1% for the week.The S&amp;P 500 and DJ30 were both up 1.3%, while the R2K was up 4.3%.

Furniture/Furnishings Weekly - November 25, 2024

<ul><li>Furniture and furnishing stocks retrenched last week, in line with the broader market.</li><li>The Water Tower Research Commercial/Contract Furniture Index declined 3.1%, the Residential Manufacturers &amp; Suppliers Index dipped 3.0%, the Home Goods Retailers Index fell 1.0%, while the Mass Retailers Index was down 1.3%.</li><li>The S&amp;P 500 and DJ30 were both down 2.2% during the week, while the R2K declined 5.5%. </li></ul>

Furniture and furnishing stocks retrenched last week, in line with the broader market.The Water Tower Research Commercial/Contract Furniture Index declined 3.1%, the Residential Manufacturers &amp; Suppliers Index dipped 3.0%, the Home Goods Retailers Index fell 1.0%, while the Mass Retailers Index was down 1.3%.The S&amp;P 500 and DJ30 were both down 2.2% during the week, while the R2K declined 5.5%. 

Furniture/Furnishings Weekly - November 18, 2024

United States

Culp, Inc. manufactures and markets upholstery fabrics and mattress tickings for use in furniture and bedding industries. The Company's fabrics are used in the production of residential and commercial furniture and bedding products, including sofas, recliners, chairs, loveseats, sectionals, sofa-beds, office seating, panel systems, and mattress sets.

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Culp Inc (CULP US)

Furniture/Furnishings Weekly - December 16, 2024

It was a mixed week for furniture and furnishings stocks, as earnings results and company-specific factors seemed to dominate trading for several...

Water Tower Research

Furniture/Furnishings Weekly Black Friday; Furniture Demand Still Weak

The market was of two minds the past week, with big caps outperforming small caps and furniture and furnishings retailers outperforming manufacturers.

Water Tower Research

Culp, Inc. - 2QFY25 Adjusted EPS Of ($0.28) As Macro Headwinds Persist

Persistent macro headwinds during 2QFY25 affected revenue and earnings as management continues to execute against its restructuring plan to restore...

Water Tower Research

Furniture/Furnishings Weekly - November 25, 2024

The Water Tower Research Commercial/Contract Furniture Index was up 2.2%, the Residential Manufacturers & Suppliers Index was up 0.7%

Water Tower Research

Furniture/Furnishings Weekly - November 18, 2024

The Water Tower Research Commercial/Contract Furniture Index declined 3.1%, the Residential Manufacturers & Suppliers Index dipped 3.0%,

Water Tower Research

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