La-Z-Boy Misses Q1 Estimates, Guides Q2 Below Street; Shares Drop 16%
LZB sits 15% above its 52-week low of $29.03.
Summary
La-Z-Boy swung to a fiscal Q1 loss of $2.29 million, or 6 cents a share, from a profit of $18.2 million a year earlier. Adjusted EPS of 43 cents missed the 49-cent consensus, and sales fell 3% to $475.7 million versus expectations for $501 million. The company guided Q2 sales to $500-$520 million, below the $537 million Street estimate, and forecast adjusted operating margin of 4% to 5.5% as investments in stores, advertising, and digital transformation weigh on profitability. Shares slid 16% to $34.34 in late trading. This follows the earlier Q1 report that highlighted retail same-store sales growth of 3%, but the new details on the earnings miss and weak guidance are materially worse than the initial headline suggested.
At the time of this announcement, LZB was trading at $33.40 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 news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.