Despite rising input rises and supply chain disruptions, growing demand for quality furniture and rising consumer spending should help prominent furniture stocks RH (NYSE:RH) and Ethan Allen (NYSE:ETD) to offset production costs and profit substantially this holiday season. But which of these stocks is a better buy now? Read more to find out.RH (RH) and Ethan Allen Interiors Inc . (ETD) are two well-established residential furniture retailers in the United States. RH offers furniture, lighting, textiles, bath-ware, décor, outdoor and garden, and child and teen furnishing products. ETD operates as an interior design company, and manufactures and retails case goods items, upholstery items, home accent items, and home and garden furnishings. Both companies distribute their products primarily through retail stores and websites.
Continuation of remote working structures amid the resurgence of COVID-19 cases and rising consumer spending this holiday season is creating the demand for quality home furnishings lately. This trend will likely continue due to the growing demand for quality furniture this holiday season. The global furniture market is expected to grow at 4% CAGR and reach $113.61 billion by 2024. So, both RH and ETD should benefit this holiday season.
While RH lost 13.9% over the past three months, ETD has surged 3.6%. ETD is a clear winner with 2.9% gains versus RH’s negative returns in terms of their past month’s performance. But which of these stocks is a better pick now? Let us find out.