New York – For the first time, Home Textiles Today is presenting an easy-to-scan review of home trends, data and guidance from major home textiles accounts.
The information was culled from retailers’ Q1 investor calls and filings with the Securities and Exchange Commission.
This report has 4 components:
- Commentary on home trends and break-out data, where available
- A quick list of common themes presented by retailers
- A look at which retailers raised or lowered their guidance for the year after Q1 closed
- Total sales and comps for 25 retailer nameplates that rank on HTT’s Top 50 U.S. retailers of home textiles.
Home Business Performance
Big Lots
Soft home sales down 17% to $135 million. Soft home accounted for 12% of total sales, on par with last year’s Q1.
Product shortages in furniture had “an attachment impact on adjacent categories such as soft home.” Furniture sales were down 27% for the quarter.
Bloomingdale’s
Home business described by CEO as “quite robust.”
Dollar General
Home sales down 1.6% to $531 million.
Dillard’s
Home not called out among either the best-performing or the weakest performing categories.
Family Dollar
Home sales up 7.1% to $239.5 million.
HomeGoods
Sales were “depressed” during Q1, but began to pick up toward the end of the period and going into early Q2. Traffic also began to improve.
Kohl’s
Home identified as its biggest opportunity to capture additional category market share. Several locations have begun showcasing seasonal gift and home décor at the front of the store.
Within the home department, Kohl’s is expanding home décor, outdoor and pet offerings. Areas of opportunity here includes a greater selection of wall art, seasonal merchandise, patio furniture, camping & outdoor gear and tabletop.
Macy’s division
Home textiles making “a real turnaround” as Macy’s home department sees “a comeback” in textiles, housewares and tabletop. In Q4, Macy’s will add the UGG soft home brand to the assortment. UGG had previously been exclusive to Bed Bath & Beyond.
Macy’s Inc.
Combined Macy’s and Bloomingdale’s “home + other” sales fell 11.3% to $780 million. [Note: “Other” primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards.]
Marmaxx
Home remained “relatively depressed” as the TJX Cos. division continues to cycle past the outsized sales it saw during the pandemic.
Pottery Barn
Textiles and decorative categories performed well, including pattern print pillows, table linens, bedding (especially quilts) and bath textiles.
Pottery Barn Teen
Pottery Barn Teen is angling for a bigger share of the Back-to-College business with its recently launched dorm assortment of extra-long twin bedding and storage. Customers can shop online and have their orders shipped to a store near campus.
Target
Home segment sales down 9.74% to $3.855 billion. Home contribution fell to 15.45% of total sales in Q1 vs. 17.20% in year-ago Q1.
Target sees “some upside” for home in the back half, especially during Back-to-College in home textiles and appliances.
Walmart
General merchandise comped down low single digits, with home named among the most sluggish categories.
West Elm
To offset sluggish sales of furniture, West Elm will expand its assortment of textiles, decorating, accessories, entertaining and seasonal offerings.
Through lines
Business fell off in mid-March
Business impacted by lower tax refunds
Business impacted by reduced SNAP benefits
Business impacted by unseasonably cool weather
Sales environment expected to become more promotional
Retailers conserving open-to-buy to jump on trends
Fiscal Year Guidance Changes
RAISED
RH: Raised revenue outlook for fiscal 2023 to a range of $3.0 to $3.1 billion. Lowered outlook for adjusted operating margin to a range of 14.5% to 15.5.
Ross: Raised its annual earnings forecast. The company now expects earnings per share of $4.77 to $4.99, up a notch from its prior forecast of $4.65 to $4.95. Annual comp-store sales are still forecast to be flat.
Walmart: Now expects total net sales will increase 3.5%. Raised EPS guidance approx. 2.5%.
LOWERED
Dollar Tree Inc.: Lowered full-year EPS of $5.73 to $6.13. Standing pat on its guidance of consolidated net sales in the range of $30.0 billion to $30.5 billion, with a low- to mid-single-digit comparable store sales increase for the year.
Home Depot. Now expects Sales and comparable sales to decline between 2% and 5% compared to fiscal 2022.
MAINTAINED
Burlington: Expects sales to increase in the range of 12% to 14%. Comps to increase in the range of 3% to 5%.
Kohl’s: Expects a net sales decrease between 2% to 4%.
Target: Expects comp sales in a wide range from a low-single digit decline to a low-single digit increase, operating income growth of more than $1 billion.
Williams-Sonoma Inc.: Expects full-year guidance of net revenue growth in the range of -3% to +3% with an operating margin between 14% to 15%.
Figures are net sales or retail sales rather than total revenues for Burlington, Costco, Dillard’s, Kohl’s, Nordstrom and Target.
NA = Not available
Footnotes:
* Costco is fiscal Q3. Comp is U.S. only, excluding fuel.
* Dollar Tree Inc. comp figure is for consolidated same-store sales. Dollar Tree stores comp up 3.4%. Family Dollar stores comp up 6.6%.
* Home Depot comp is U.S. only.
* Macy’s Inc. sales include Macy’s, Bloomingdale’s and Blue Mercury. Comp is consolidated on an owned basis. Macy’s banner comp was down 8.7% on an owned basis. Bloomingdale’s comp was down 3.9% on an owned basis.
* Sam’s Club comp excludes the impact of fuel sales.
* Wayfair revenue is U.S. only.
Source: Quarterly company filings.
