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Morgan Stanley's Home Furnishing Survey: Overall Healthy Trends Continue, Mixed Results For Retailers

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Simeon Gutman of Morgan Stanley released his findings from a Home Furnishing Survey and found that the segment's trends are “healthy.”

According to the findings, overall spending among consumers within the home furnishing segment over the last three months is $134 per shopper. Intention to spend over the next three months was found to be $113 per shopper.

Thirty-four percent of consumers plan on starting their shopping earlier this year.

Below are some of the company specific findings:

  • Pier 1 Imports Inc (NYSE: PIR) was observed to be slightly less promotional and respondents ranked the retailer as the fourth-highest in intent to spend over the next three months. Gutman notes that the findings bodes well for shorter-term investors. The analyst adds that he expects the company to report “healthy” third-quarter comps of at least 4 percent to 5 percent with a “directional improvement” in gross margin.
  • Bed Bath & Beyond Inc. (NASDAQ: BBBY) saw its market share decline to 15 percent from 16 percent in August. The analyst notes that while this is a marginal drop, market share does have a +0.83 correlation to the company's comps.
  • Amazon.com, Inc. (NASDAQ: AMZN) saw its market share within housewares growing although the perception of the company's pricing advantage fell.
  • Target Corporation's (NYSE: TGT) perception of its brands, price matching and overall pricing declined.
  • Williams-Sonoma, Inc. (NYSE: WSM) was singled out as an “online winner” with 29 percent of respondents shopping through the retailer online, more than any other Hardline retailer.

Latest Ratings for AMZN

DateFirmActionFromTo
Sep 2019MaintainsOutperform
Aug 2019AssumesBuy
Jul 2019MaintainsOutperform

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Posted-In: Home Furnishing Morgan Stanley Simeon GutmanAnalyst Color Long Ideas Analyst Ratings Trading Ideas

 

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