La-Z-Boy reported adjusted earnings per share of $0.43 for the first fiscal quarter of 2027, missing the consensus estimate of $0.49 by 12.2%. The company’s GAAP diluted EPS stood at negative $0.06, reflecting one-time plant exit charges. Revenue totaled $476 million, falling short of the $495.45 million estimate by nearly 4%, while consolidated sales declined 3% year-over-year and 1% after adjusting for the wholesale case goods divestiture.
Adjusted operating income reached $19 million, down from $27 million in the prior-year period, with an adjusted operating margin of 3.9%, compared to 4.8% a year earlier. GAAP operating income turned negative at a loss of $2 million, with a margin of -0.4%. The company maintained a strong balance sheet with $267 million in cash and equivalents and no external debt. Key financial ratios included a current ratio of 1.8 and a debt-to-equity ratio of 0.54.
Segment performance showed mixed trends. Retail sales rose 10% to $229 million, driven by new and acquired stores, though same-store sales declined slightly. Written sales increased 16%, with written same-store sales up 3%, marking a sequential improvement from the fourth quarter. The company added four company-owned stores during the quarter, bringing its total to 234, representing 62% of its North American network. The total store count stands at approximately 380, with a long-term target of 450 locations. The Wholesale segment reported a 9% year-over-year decline in delivered sales to $323 million, while Joybird, part of the corporate segment, saw delivered sales fall 4% to $27 million.
Shares of La-Z-Boy dropped 16.97% in premarket trading to $33.90, down from the previous close of $40.83, and have traded within a 52-week range of $29.03 to $44.90. The company’s dividend yield stands at 2.37%, supported by 15 consecutive years of payouts and five years of increases.
For the second fiscal quarter of 2027, La-Z-Boy expects sales of $500 million to $520 million and an adjusted operating margin of 4% to 5.5%. Management outlined strategic initiatives, including the opening of about 10 new stores during the fiscal year, completion of two of three centralized distribution hubs by year-end, and finalization of two plant consolidations. Joybird’s manufacturing will transition into the U.S. plant network by the end of the fiscal year, while the company plans to close an acquisition of two independent La-Z-Boy stores in Louisiana in October. The company’s pipeline includes nearly 40 independent dealers and approximately 150 independent stores.
