Bob's Discount Furniture revenue rises 10.3% as store base expands. Comparable sales increased 3.8%, while e-commerce revenue grew 27.8%. The retailer reaffirmed its fiscal 2026 outlook. Nov 7, 2026, 11:12 AM PST Bob's Discount Furniture said its third-quarter revenue rose 10.3% to $680.4 million, as store openings and stronger sales at comparable locations supported growth at the U.S. home-furnishings retailer. The quarter ended Sept. 27 with 11 new store openings. Bob's had 229 stores across 28 states at the end of the period. The company linked the revenue gain to its expanded store base and higher sales at comparable locations. Discover more Business Strategy Consulting Global Economy Forecasts Market Data API Comparable sales rose 3.8% year over year. Larger average purchases and more online traffic helped lift the measure, while fewer visits to physical stores partly offset those gains, according to the company's Form 10-Q. E-commerce revenue increased 27.8%, while the retail channel grew 7.2%. Net income climbed 28.8% to $41.7 million, and diluted earnings per share were 31 cents. Gross profit increased 11.3% to $316 million, the company said in its earnings release. Adjusted gross margin was 45.7%, down from 46% a year earlier after excluding $4.9 million in tariff refunds. Bob's said inventory and fuel-related costs, along with tariffs, weighed on the measure. Product mix, delivery margins and selective pricing changes provided some relief from those pressures. The company reaffirmed its fiscal 2026 outlook, including revenue of $2.6 billion to $2.625 billion and comparable-sales growth of 1.5% to 2.5%. It expects net income of $145 million to $153 million. Bob's also forecasts that the fiscal year's 53rd week will add $46 million in net revenue.

What Bob's Discount Furniture (BOBS) said on its Q3 earnings call. November 6, 2026 Key points. * Q3 sales and adjusted earnings grew: Revenue rose 10.3% to $680 million, comparable sales increased 3.8%, and adjusted EBITDA climbed 18% to $75.5 million. Premium-product purchases and new stores supported results, though traffic remained a headwind. * Higher fuel costs lowered the gross-margin outlook: Bob's now expects full-year gross margin to decline 20-30 basis points, versus its prior forecast of roughly flat performance. It maintained its other 2026 guidance, including revenue of $2.6 billion to $2.63 billion. * Digital sales and store expansion advanced: E-commerce grew about 28% and represented 17.6% of sales; the company opened 11 stores, bringing its total to 229. Bob's continues to target 10% unit growth in 2027. * Five stocks we like better than Bob's Discount Furniture. Bob's Discount Furniture NYSE: BOBS reported higher third-quarter sales and adjusted profit as customers bought more premium furniture and new stores contributed to growth, but the retailer lowered its full-year gross margin outlook because of rising fuel costs. Net revenue rose 10.3% to $680 million, while comparable sales increased 3.8% on top of an adjusted 12.3% gain a year earlier. Adjusted net income rose to $38.8 million from $32.7 million, and adjusted diluted earnings per share were $0.28. Adjusted EBITDA increased 18% to $75.5 million, with the margin expanding to 11.1% from 10.4% a year earlier. Both adjusted EBITDA and adjusted net income excluded a $4.9 million tariff refund benefit. President and CEO Bill Barton said furniture demand appeared to stabilize during the quarter and that Bob's continued to gain market share. But he cautioned during the question-and-answer session that the company was not calling a bottom or forecasting an industry upturn. Fuel costs pressure margin outlook. Adjusted gross margin fell 30 basis points to 45.7%, excluding the tariff refund benefit. CFO Carl Lukach said higher fuel and inventory-related costs more than offset the benefits of targeted price increases and a shift toward premium products. Lukach said diesel prices were up roughly 80% year over year, affecting raw materials, ocean freight surcharges, line haul and delivery expenses. He expects elevated fuel costs to remain a gross margin headwind into the new year. The company now expects full-year gross margin to decline approximately 20 to 30 basis points from the prior year, compared with its previous expectation of roughly flat performance. It maintained the rest of its 2026 outlook, including: * Net revenue of $2.6 billion to $2.63 billion. * Comparable sales growth of 1.5% to 2.5%. * Adjusted net income of $121 million to $129 million. * Adjusted EBITDA of $255 million to $265 million. Lukach said fourth-quarter sales trends so far were tracking in line with the company's long-term framework of low-single-digit comparable sales growth. He also said the implied fourth-quarter gross margin outlook would benefit from comparison with a prior-year quarter affected by an unfavorable shift toward lower-priced products. Bob's took approximately 3.5% in price increases during the third quarter, Lukach said, adding that the resulting customer response was generally in line with expectations. Barton said pricing is the last step in the company's cost-mitigation playbook, after actions involving sourcing and other operations. Discover more Stock Market News Stock Market Holidays Track Stock Market Lukach said the company's line-haul fuel exposure was fully hedged for the rest of 2026, but it had no hedges in place for 2027 or beyond. Premium sales and online growth. Higher average order values drove comparable sales growth, while traffic remained a headwind, Lukach said. Online conversion contributed slightly to growth, while brick-and-mortar conversion was modestly unfavorable. Barton said customers continued to trade up into higher-priced products. Better and best merchandise represented around 60% of the business, Lukach said. Strength in living room furniture, motion products and recliners helped offset softer mattress performance. E-commerce sales grew approximately 28% year over year and accounted for 17.6% of total sales, up roughly 250 basis points. Barton said the company's Omnicart tool, which lets customers continue purchases across stores and online, contributed to that growth. Some customers who visit a store may complete their purchase online rather than return for another visit, Barton said, though he described the evidence as anecdotal and difficult to quantify. Customers shopping across both channels spend nearly 20% more per order than average, he said. Store expansion continues. Bob's opened 11 stores during the quarter, bringing its total to 229 across 28 states. The openings included its first four Nashville-area stores over Labor Day weekend. The company plans to open one more store in the fourth quarter. Barton said stores opened in 2025 and 2026 were generally performing ahead of initial expectations. Lukach said North Carolina locations entering the comparable-sales base contributed an outsized lift during the quarter. The company continues to target 10% unit growth in 2027, with Atlanta among its planned markets. Its distribution center in Macon, Georgia, remains on track to open in spring 2027, Barton said. Bob's ended the quarter with $110 million in cash and cash equivalents, approximately $288 million in total liquidity and no debt. Asked about a potential share buyback, Lukach said growth investment remains the company's highest priority, though it would consider opportunistic returns of excess capital to shareholders at the right time. About Bob's Discount Furniture (NYSE:BOBS). Bob's Discount Furniture is a U.S. furniture retailer that sells a broad selection of furniture and home furnishings at value-oriented prices. Its merchandise includes living room, bedroom, dining room and home office furniture, as well as mattresses, rugs, lighting, décor and other household products. The company was founded in 1991 by Robert "Bob" Kaufman in Newington, Connecticut. Bob's operates an omnichannel retail model that combines a network of showrooms with online shopping and related delivery and service capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Bob's Discount Furniture, you'll want to hear this. 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