Research from Water Tower Research, Water Tower Research

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

Thematic (Sector/Industry)

<ul><li>A rough week for smaller-cap stocks without AI exposure.</li><li>The WTR Commercial/Contract Furniture Index (-6.9%), Residential Manufacturers &amp; Suppliers Index (-1.4%), and Home Goods Retailers Index (-1.3%) underperformed the Dow (+1.2%), S&amp;P 500 (+1.2%), and Mass Retailers Index (+1.9%), all of which benefited from the growing AI hype this week.</li><li>This performance seems to be partly due to the overall weakness of small caps, with the Russell 2000 clocking in (-1.7%).</li></ul>

A rough week for smaller-cap stocks without AI exposure.The WTR Commercial/Contract Furniture Index (-6.9%), Residential Manufacturers &amp; Suppliers Index (-1.4%), and Home Goods Retailers Index (-1.3%) underperformed the Dow (+1.2%), S&amp;P 500 (+1.2%), and Mass Retailers Index (+1.9%), all of which benefited from the growing AI hype this week.This performance seems to be partly due to the overall weakness of small caps, with the Russell 2000 clocking in (-1.7%).

Furniture/Furnishings Weekly - June 10, 2024

<ul><li>A good week for furniture and furnishings stocks. The Water Tower Research Commercial/Contract Index (+3.5%) and Home Goods Retailers Index (+2.5%) posted strong returns relative to the market (-0.5% to +0.1%) and the Mass Retailers Index (-0.6%).</li><li>Our Residential Manufacturers &amp; Suppliers Index (-0.5%) was in line with the broader market.</li><li>The China price is now the highest in Asia. According to Science Is Strategic (citing Haver Analytics), unit labor rates in China are now ~2.5x to 4x higher than other Asian countries (see Figure 1). </li></ul>

A good week for furniture and furnishings stocks. The Water Tower Research Commercial/Contract Index (+3.5%) and Home Goods Retailers Index (+2.5%) posted strong returns relative to the market (-0.5% to +0.1%) and the Mass Retailers Index (-0.6%).Our Residential Manufacturers &amp; Suppliers Index (-0.5%) was in line with the broader market.The China price is now the highest in Asia. According to Science Is Strategic (citing Haver Analytics), unit labor rates in China are now ~2.5x to 4x higher than other Asian countries (see Figure 1). 

Furniture/Furnishings Weekly - June 3, 2024

<ul><li>A tough week for our indexes. It was a down week in the market for Water Tower Research’s Residential Manufacturers &amp; Suppliers Index (-6.4%) and Home Goods Retailers Index (- 6.7%) relative to the broader market indexes (-0.1% to -1.5%) and the Mass Retailers Index (-1.6%).</li><li>On a relative basis, the Commercial/Contract Furniture Index (-1.0%) outperformed.</li><li>Leggett reappointed Karl Glassman as CEO. Amidst the ongoing mattress industry recession/depression, Glassman, who served as Leggett’s CEO from 2016 to 2021 and Board Chair since 2020, was again appointed President and CEO, succeeding CEO Mitch Dolloff, who resigned.</li></ul>

A tough week for our indexes. It was a down week in the market for Water Tower Research’s Residential Manufacturers &amp; Suppliers Index (-6.4%) and Home Goods Retailers Index (- 6.7%) relative to the broader market indexes (-0.1% to -1.5%) and the Mass Retailers Index (-1.6%).On a relative basis, the Commercial/Contract Furniture Index (-1.0%) outperformed.Leggett reappointed Karl Glassman as CEO. Amidst the ongoing mattress industry recession/depression, Glassman, who served as Leggett’s CEO from 2016 to 2021 and Board Chair since 2020, was again appointed President and CEO, succeeding CEO Mitch Dolloff, who resigned.

Furniture/Furnishings Weekly - May 28, 2024

<ul><li>Furniture and furnishing stocks performed well last week. All three of the WTR indexes outperformed the broader market, led by Residential Manufacturers &amp; Suppliers (+3.3%), Commercial/Contract Furniture (+3.2%) and Home Goods Retailers (+2.7%), which outperformed the broader markets (- 0.1% to +0.8%) and the Mass Retailers Index (+0.1%).</li><li>Mattress demand remains weak. Tempur Sealy International (TPX) CEO Scott Thompson noted in his 1Q24 remarks, “You’d have to say the bedding industry is in a depression and has been in one for a number of quarters” , with demand down an estimated 15% industry-wide in the first three months of the year.</li><li>For TPX, sequentially, demand was weakest in January and improved (though erratically) through April, where it was ‘flattish’. Higher- end price points were a bright spot.</li></ul>

Furniture and furnishing stocks performed well last week. All three of the WTR indexes outperformed the broader market, led by Residential Manufacturers &amp; Suppliers (+3.3%), Commercial/Contract Furniture (+3.2%) and Home Goods Retailers (+2.7%), which outperformed the broader markets (- 0.1% to +0.8%) and the Mass Retailers Index (+0.1%).Mattress demand remains weak. Tempur Sealy International (TPX) CEO Scott Thompson noted in his 1Q24 remarks, “You’d have to say the bedding industry is in a depression and has been in one for a number of quarters” , with demand down an estimated 15% industry-wide in the first three months of the year.For TPX, sequentially, demand was weakest in January and improved (though erratically) through April, where it was ‘flattish’. Higher- end price points were a bright spot.

Furniture/Furnishings Weekly - May 13, 2024

<ul><li>It was a mixed week in stocks, with most Water Tower Research furniture/furnishings indexes outperforming (with Residential the weak spot following LEG’s dividend cut).</li><li>Our Home Goods Retailers Index (+6.0%) significantly outperformed the broader market (+0.2% to +1.0%) as well as our Mass Retailers Index (+1.8%) and our Commercial/Contract Furniture Index (+1.6%).</li><li>Our Residential Manufacturers &amp; Suppliers Index declined 0.9%, driven in part by Leggett &amp; Platt’s steep 23.9% sell-off following its 1Q24 earnings release and investor call.</li></ul>

It was a mixed week in stocks, with most Water Tower Research furniture/furnishings indexes outperforming (with Residential the weak spot following LEG’s dividend cut).Our Home Goods Retailers Index (+6.0%) significantly outperformed the broader market (+0.2% to +1.0%) as well as our Mass Retailers Index (+1.8%) and our Commercial/Contract Furniture Index (+1.6%).Our Residential Manufacturers &amp; Suppliers Index declined 0.9%, driven in part by Leggett &amp; Platt’s steep 23.9% sell-off following its 1Q24 earnings release and investor call.

Furniture/Furnishings Weekly - May 6, 2024

United States

Flexsteel Industries, Inc. manufactures and sells wooden and upholstered furniture for the retail, contract, and recreational vehicle (RV) furniture markets. The Company's products are sold to furniture dealers, department stores, and RV manufacturers throughout the United States. Flexsteel also sells its products to several national chains that sell on a private label basis.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Flexsteel Inds (FLXS US)

Furniture/Furnishings Weekly - June 10, 2024

The WTR Commercial/Contract Furniture Index (-6.9%), Residential Manufacturers & Suppliers Index (-1.4%), and Home Goods Retailers Index (-1.3%)...

Water Tower Research

Furniture/Furnishings Weekly - June 3, 2024

The Water Tower Research Commercial/Contract Index (+3.5%) and Home Goods Retailers Index (+2.5%) posted strong returns relative to the market (...

Water Tower Research

Furniture/Furnishings Weekly - May 28, 2024

It was a down week in the market for Water Tower Research’s Residential Manufacturers & Suppliers Index (-6.4%) and Home Goods Retailers Index (-...

Water Tower Research

Furniture/Furnishings Weekly - May 13, 2024

Furniture and furnishing stocks performed well last week. All three of the WTR indexes outperformed the broader market, led by Residential...

Water Tower Research

Furniture/Furnishings Weekly - May 6, 2024

It was a mixed week in stocks, with most Water Tower Research furniture/furnishings indexes outperforming (with Residential the weak spot following...

Water Tower Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)