Key Stats for La-Z-Boy Stock
- Price Change for La-Z-Boy stock: 7.5%
- $LZB Share Price as of Nov. 18: $29.60
- 52-Week High: $48.31
- $LZB Stock Price Target: $41
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What Happened?
La-Z-Boy (LZB) stock is up nearly 8% in pre-market after the furniture maker reported second-quarter earnings that crushed Wall Street expectations.
The company posted adjusted earnings of $0.71 per share, blowing past the $0.54 consensus estimate by 31%. Revenue came in at $522.5 million, topping forecasts of $517.6 million.
Beyond the earnings beat, La-Z-Boy delivered several strategic wins.
- It opened five new stores during the quarter and completed a 15-store acquisition in the Southeast that will add roughly $80 million in annual retail sales.
- Written sales for company-owned stores grew 4% year over year, demonstrating momentum despite a challenging consumer environment.
- Management announced plans to exit non-core businesses, including Kincaid and American Drew casegoods, and to close its UK manufacturing facility.
These moves are expected to boost margins by 75 to 100 basis points once completed. Notably, La-Z-Boy generated $50 million in operating cash flow for the quarter, triple the prior year period, and raised its quarterly dividend by 10% to $0.242 per share.
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What the Market Is Telling Us About LZB Stock
The jump in LZB stock indicates that the company is executing on its growth strategy even as the furniture industry struggles with weak demand.
Same-store sales were down 2%, but that represented sequential improvement from recent quarters. More importantly, the wholesale segment delivered a 2% sales increase with expanding margins, suggesting La-Z-Boy is gaining share.
CEO Melinda Whittington emphasized that roughly 90% of the company’s finished goods are produced in the U.S., positioning La-Z-Boy to navigate current tariff volatility more effectively than competitors that rely heavily on imports.
This manufacturing advantage matters in an environment where trade policy remains unpredictable.
The company ended the quarter with $339 million in cash and zero external debt, giving it financial flexibility to pursue acquisitions and weather any economic slowdown.
Management’s third-quarter guidance calls for sales between $525 million and $545 million with adjusted operating margins of 5.0% to 6.5%, reflecting friction costs from portfolio optimization and a cautious view on consumer spending.
LZB stock has now climbed more than 12% year-to-date, significantly outperforming many retail peers.
The dividend increase marks the fifth consecutive year of double-digit growth, signaling management’s confidence in the business model.
With 222 company-owned stores now in the network following recent acquisitions, La-Z-Boy is building scale advantages that should drive profitability as industry demand eventually recovers.
Investors buying LZB stock today are betting the company’s Century Vision strategy to expand its retail footprint will pay off over the long term.
The earnings beat and strong cash generation suggest that the thesis is playing out, even if the near-term consumer backdrop remains choppy.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
