Furniture maker La-Z-Boy Q1 sales miss estimates

Overview

• La-Z-Boy fiscal Q1 sales fall 1%, missing analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q1 misses consensus, per LSEG data

Outlook

• La-Z-Boy expects Q2 sales between $510 mln and $530 mln

• Company projects Q2 adjusted operating margin of 4.5% to 6.0%

Result Drivers

• RETAIL GROWTH - Retail segment written sales increased 5% driven by new and acquired stores, while delivered sales rose 2%

• WHOLESALE PERFORMANCE - Wholesale segment delivered sales grew 1%, driven by core North America La-Z-Boy wholesale business

• JOYBIRD DECLINE - Joybird sales decreased due to lower delivered sales and a significant customer transition in international wholesale business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "hold"

• Wall Street's median 12-month price target for La-Z-Boy Inc is $46.00, about 16.7% above its August 18 closing price of $38.34

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX9jXLNj