La-Z-Boy Shares Fall 3.2% Amid Q1 Guidance Cut Due to Challenging Consumer and Macro Environment.

La-Z-Boy shares fell 3.2% after the furniture company warned of a challenging consumer and macro environment, cutting its Q1 sales guidance to the low end of its range. The company cited an increasingly tough consumer and macro environment for the revised forecast. La-Z-Boy is acquiring 15 independently owned stores and four warehouses in the southeastern US, adding $80 million in annual sales. The stock has declined 12.8% YTD and is trading 21.6% below its 52-week high.

La-Z-Boy Incorporated (NYSE: LZB) shares fell 3.2% in Monday's postmarket session following the company's warning that fiscal Q1 sales and adjusted operating margin will land near the low end of its recent guidance range. The company cited an increasingly tough consumer and macro environment for the revised forecast. La-Z-Boy is also acquiring 15 independently owned stores and four warehouses in the southeastern US, adding $80 million in annual sales. The stock has declined 12.8% year-to-date (YTD) and is trading 21.6% below its 52-week high.

In its fiscal Q4 results reported last month, La-Z-Boy had forecasted sales to be down 1.2% to up 2.8%, while adjusted operating margin was expected to be within a range of 5.5% to 7%. The revised outlook overshadowed the company’s other news that it had acquired 15 independently owned La-Z-Boy Furniture Galleries and four warehouses from Atlanta Furniture Galleries, LLC. The newly acquired stores are located in Georgia, Florida, and Tennessee, representing ~$80M in annual sales. The transaction is expected to close at the end of October and will increase the number of company-owned stores to 220, or 60% of the total La-Z-Boy network [1].

The acquisition is expected to contribute approximately $40 million of additional sales annually to the company on a consolidated basis. The transaction is expected to be funded with cash on hand, and additional terms of the deal were not disclosed. La-Z-Boy Incorporated will provide additional financial information relating to the transaction in its fiscal year 2026 second-quarter results in November 2025 [2].

Separately, in light of the increasingly challenging consumer and macro environment, the company now expects its fiscal first quarter sales and adjusted operating margin to be around the low end of the ranges in the previously-issued outlook for the period ending July 26, 2025. The company has been navigating an increasingly challenging macro environment and has signaled its intent to create momentum despite current headwinds [2].

La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers. The Retail segment consists of over 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with La-Z-Boy.com, serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 13 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home [2].

References:
[1] https://seekingalpha.com/news/4467272-la-z-boy-warns-q1-sales-likely-at-low-end-of-guidance-acquires-15-independently-owned-stores-across-the-south
[2] https://finance.yahoo.com/news/la-z-boy-incorporated-acquire-201500311.html