Earnings call transcript: La-Z-Boy misses Q1 2027 estimates as shares slide
La-Z-Boy released its fiscal first-quarter 2027 earnings, reporting adjusted earnings per share of $0.43 on revenue of $476 million, falling short of analysts' expectations of $0.49 per share and $495.45 million in revenue. The decline was primarily due to weaker wholesale and Joybird segments, along with higher costs from major supply-chain projects.
Shares of La-Z-Boy plunged 16.97% in premarket trading, reaching $33.90 from the previous close of $40.83. Despite a 3% decline in consolidated sales year-over-year, the company's core retail segment continued to show momentum, fueled by acquisitions and new stores. La-Z-Boy's financial health score, as per InvestingPro analysis, stands at 2.61 out of 5, indicating a good standing with strong cash flow management.
The company maintains a cash position of $267 million with no external debt. La-Z-Boy's adjusted operating margin decreased year-over-year, and higher SG&A costs impacted margins. The company's vertically integrated model, with over 90% of production domestically, provides a competitive advantage. The earnings miss overshadowed the positive retail trends, leading investors to focus on the weaker-than-expected bottom line and the company's near-term cost burden.
La-Z-Boy expects sales of $500 million to $520 million and an adjusted operating margin of 4% to 5.5% for the fiscal second quarter.
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