La-Z-Boy slides after earnings and guidance disappoint amid 'uneven' consumer demand

[LaZBoy Furniture Gallery Store]
KenWiedemann

La-Z-Boy Incorporated (NYSE:LZB [https://seekingalpha.com/symbol/LZB]) fell in postmarket trading on Tuesday after setting guidance below expectations.

The Michigan-based furniture manufacturer reported mixed results for its fiscal first quarter of 2026, with total sales declining 1% year-over-year to $492 million. While the company’s retail segment drove growth, posting a 5% increase in written sales and a 2% gain in delivered sales, the wholesale segment improved by just 1%. In the wholesale segment, growth in the core North America La-Z-Boy (NYSE:LZB [https://seekingalpha.com/symbol/LZB]) wholesale business and casegoods business was partially offset by the continued impact of a significant customer transition in the international wholesale business that began in the second quarter of fiscal 2025.

Adjusted operating margin narrowed to 4.8% from 6.6% a year ago, and adjusted earnings per share dropped 24% to $0.47 vs. $0.53 consensus. Cash flow from operations totaled $36 million, and $22 million was returned to shareholders through dividends and buybacks.

The company highlighted a planned acquisition of 15 stores in the Southeast, which is expected to close in October, and a successful transition of its Arizona distribution center to a new West Coast hub. Looking ahead, La-Z-Boy forecasts Q2 sales between $510 million and $530 million (midpoint $520 million) to fall short of the consensus expectation of $532 million. Adjusted operating margin is expected to land in the 4.5% to 6.0% range for the period.

"While continuing to advance our Century Vision strategy and drive long-term shareholder value, we are balancing our optimism in the long-term industry fundamentals and our competitive positioning with a pragmatic approach to current uneven consumer demand. In addition to strengthening our core business, we are also evaluating all alternatives to address financial pressure from non-core parts of our enterprise," CEO Melinda Whittington commented.

Shares of La-Z-Boy (LZB [https://seekingalpha.com/symbol/LZB]) fell 17.9% in postmarket trading to a new 52-week low of $32.12.

MORE ON LA-Z-BOY

* La-Z-Boy Incorporated (LZB) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4795744-la-z-boy-incorporated-lzb-q4-2025-earnings-call-transcript]
* La-Z-Boy: Well-Positioned To Conquer Industry Challenges [https://seekingalpha.com/article/4795664-la-z-boy-well-positioned-to-conquer-industry-challenges]
* La-Z-Boy Q1 2026 Earnings Preview [https://seekingalpha.com/news/4486632-la-z-boy-q1-2026-earnings-preview]
* La-Z-Boy unveils a rebranding and strategy shift ahead of its 100th anniversary next year [https://seekingalpha.com/news/4477310-la-z-boy-unveils-a-rebranding-and-strategy-shift-ahead-of-its-100th-anniversary-next-year]
* Seeking Alpha’s Quant Rating on La-Z-Boy [https://seekingalpha.com/symbol/LZB/ratings/quant-ratings]