La-Z-Boy Q1 FY27: Retail Momentum Offsets Wholesale Weakness; Adjusted EPS $0.43
LZB sits 22% above its 52-week low of $29.03.
Summary
La-Z-Boy reported mixed Q1 FY27 results: strong retail growth and shareholder returns, but wholesale weakness led to a GAAP loss. Adjusted EPS of $0.43 beat expectations, and Q2 guidance was cautious.
Key Events · Earnings and Guidance · LZB
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Q1 FY27 Results Mixed
Consolidated sales fell 3% to $476 million. GAAP diluted EPS was $(0.06) versus $0.44 a year ago, while adjusted diluted EPS was $0.43 versus $0.47.
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Retail Momentum Strong
Retail delivered sales grew 10% to $229 million. Written same-store sales increased 3%, with growth in design sales, conversion rates, and average ticket.
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Wholesale Weakness
Wholesale segment sales decreased 9% to $323 million due to uneven order patterns. Adjusted operating margin fell to 6.8% from 7.5%.
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Shareholder Returns Up 62%
Returned $35 million to shareholders through $25 million in share repurchases and $10 million in dividends. Declared quarterly dividend of $0.242 per share.
Analysis · LZB · Manufacturing
La-Z-Boy's fiscal Q1 2027 results reveal a stark contrast between its two segments. Retail delivered sales grew 10%, with written same-store sales up 3%, driven by design sales, conversion rates, and average ticket. However, Wholesale sales fell 9% due to uneven order patterns, dragging consolidated sales down 3% to $476 million. GAAP EPS swung to a loss of $(0.06) from $0.44 a year ago, but adjusted EPS of $0.43 beat expectations, excluding one-time charges from plant closures and divestitures. The company returned $35 million to shareholders, up 62%, and declared a $0.242 quarterly dividend. Guidance for Q2 is cautious: sales of $500-$520 million and adjusted operating margin of 4.0-5.5%, reflecting investments in new stores, advertising, and digital transformation. The stock is likely to react to the strong retail momentum and shareholder returns, offset by wholesale weakness and margin pressure.
At the time of this filing, LZB was trading at $35.51 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $29.03 to $44.90. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.