La-Z-Boy Q4 Earnings Beat and Share Surge
La-Z-Boy Incorporated (NYSE:LZB) reported fourth‑quarter results that exceeded analyst expectations. Adjusted earnings per share were $1.26, beating the consensus estimate of $0.82 by $0.44. Revenue for the quarter was $570.34 million, slightly above the $569.23 million forecast and essentially flat compared with the same period a year earlier.
The retailer’s adjusted operating margin expanded to 9.9%, up from 9.4% in the prior‑year quarter, while GAAP operating margin improved by 200 basis points to 7.2%. In the retail segment, written sales grew 11% and delivered sales rose 9% to $270 million, driven by acquisitions and new store openings, although same‑store sales declined 2%—a sequential improvement.
Following the release, La‑Z‑Boy’s shares jumped 12.69% in after‑hours trading, reversing a 7.2% decline in the prior session’s close. The company’s Board Chair, President and CEO, Melinda D. Whittington, said the firm was “pleased with the strong finish to the fiscal year” and highlighted the margin performance.
Guidance for the upcoming first quarter was provided, with sales expected between $490 million and $510 million; the midpoint of $500 million reflects organic growth of up to 4%. Adjusted operating margin for the quarter is projected to be in the 4.0%–5.5% range, acknowledging that the first quarter is typically the lowest sales and margin period due to seasonal industry softness and an annual week‑long plant shutdown.
Strategic actions disclosed include the exit from the American Drew and Kincaid wholesale casegoods businesses in May and the completion of a United Kingdom supply‑chain restructuring in April. Post‑restructuring, La‑Z‑Boy’s store network comprises 230 company‑owned locations, representing 61% of its total 378 stores.