La-Z-Boy Shares Tumble Nearly 20% on Earnings Miss, Weak Outlook
Furniture maker's stock plunges after Q1 results fall short of estimates and it forecasts a challenging quarter ahead.
Shares of La-Z-Boy Incorporated (LZB) plummeted nearly 20% in after-hours trading Tuesday after the iconic furniture maker reported first-quarter earnings and revenue that missed Wall Street expectations and issued a soft forecast for the upcoming quarter, citing a difficult economic climate.
The Monroe, Michigan-based company announced adjusted earnings of 47 cents per share for the first quarter of fiscal 2026, falling short of analyst estimates of 55 cents. Revenue for the period was $492.22 million, just below the consensus estimate of $494 million and representing a 1% decrease from the same period last year.
La-Z-Boy's results painted a picture of a strained consumer. While total written sales for its retail segment grew by 5%, written same-store sales declined by 4%, a metric the company attributed to an "increasingly challenged consumer."
In a statement, Chair, President and CEO Melinda Whittington acknowledged the headwinds. "Investments in our Century Vision strategy to grow our Retail store footprint and expand brand reach, combined with soft industry demand, had a downward impact on our margin performance this quarter," she said. Whittington added that the company is "actively taking steps to adjust our near-term operations and prudently navigate the current environment."
Looking ahead, La-Z-Boy projected second-quarter revenue to be between $510 million and $530 million, below the analyst consensus of $531.67 million. The company stated its guidance reflects a "continued challenging consumer and macroeconomic environment."
Following the release, the company's shares were down 19.82% to $31.36 in after-hours trading, erasing a significant portion of their recent gains.