La-Z-Boy Incorporated (NYSE:LZB) saw its shares tumble 16% in after‑hours trading after releasing its first‑quarter results. The furniture retailer posted adjusted earnings per share of $0.43 for the quarter ended July 25, 2026, missing the analyst consensus of $0.49. Revenue for the quarter was $476 million, a 3% year‑over‑year decline and below the $495.45 million estimate. On a GAAP basis the company recorded a loss per share of –$0.06, compared with earnings of $0.44 in the same period last year. Excluding the impact of the wholesale casegoods divestiture completed in May, sales declined 1%.
Segment performance showed the Retail segment delivering $229 million in sales, up 10% quarter‑over‑quarter and with same‑store sales growing 3%. In contrast, the Wholesale segment posted $323 million in sales, down 9% due to uneven order patterns. Adjusted operating margin compressed to 3.9% from 4.8% a year earlier, primarily because of expense deleverage on lower Wholesale and Joybird delivered sales.
For the second quarter, La‑Z‑Boy provided revenue guidance of $500 million to $520 million, with a midpoint of $510 million, which is significantly below the analyst consensus of $536.8 million. The company also projected an adjusted operating margin in the range of 4.0% to 5.5%, citing continued investments in new stores, advertising, strategic pricing, and digital transformation.
"During our first quarter, we continued to gain share and drive momentum in our Retail segment, where we control the full end‑to‑end consumer experience," said Melinda D. Whittington, Board Chair, President and Chief Executive Officer.
Shareholder returns amounted to $35 million, comprising $25 million in share repurchases and $10 million in dividends, representing a 62% increase over the prior year. The company ended the quarter with $267 million in cash and reported no external debt.