La-Z-Boy Inc. shares tumbled 17.1% in pre-market trading after the company reported weaker-than-expected fiscal first-quarter results and issued cautious second-quarter guidance.
The furniture manufacturer posted adjusted earnings per share of $0.43 for the quarter ended July 25, missing the Wall Street consensus of $0.49. Revenue totaled $476 million, a 3% year-over-year decline and below the estimated $495 million forecast by analysts. On a GAAP basis, the company swung to a diluted loss per share of $0.06, compared with earnings of $0.44 in the same period last year.
Management provided second-quarter revenue guidance of $500 million to $520 million, with the midpoint of $510 million falling roughly $27 million below the analyst consensus of approximately $537 million. The company cited weakness in the wholesale channel and its Joybird e-commerce segment, though retail performance remained resilient.
Same-store sales in the retail division rose 3%, while total retail written sales increased 16%. Analysts had revised La-Z-Boy's EPS estimates downward twice in the prior 90 days, with no positive revisions recorded during that period.
The broader market showed little movement, with the S&P 500 essentially flat, the Dow Jones Industrial Average edging fractionally higher, and the Nasdaq slipping slightly. Earlier in the week, home-improvement and big-box retailers reported uneven consumer spending, particularly on large-ticket items, signaling a pullback in discretionary purchases.
La-Z-Boy's stock decline reflects concerns over softening demand and the company's conservative outlook amid a challenging retail environment.
