La-Z-Boy (LZB) Stock Jumps 17% After Q4 Earnings Blow Past Estimates

TLDR

• La-Z-Boy reported Q4 adjusted EPS of $1.26, crushing the $0.82 analyst estimate by $0.44
• Revenue came in at $570 million, roughly in line with the $569 million consensus
• The stock jumped as much as 17% in pre-market trading after closing down 7.2% on Tuesday
• Adjusted operating margin expanded to 9.9% from 9.4% in the prior year quarter
• Q1 guidance calls for sales of $490–$510 million, with the midpoint slightly above Wall Street’s $495 million estimate

La-Z-Boy (LZB) stock surged in pre-market trading Wednesday, climbing as much as 17% to $40.69 after the furniture maker posted a strong fourth quarter that blew past analyst expectations.

La-Z-Boy Incorporated, LZB

Adjusted earnings came in at $1.26 per share, well ahead of the $0.82 consensus estimate. Revenue reached $570 million, roughly matching the $569 million Wall Street was looking for.

The earnings beat landed after the stock had already taken a hit. LZB closed Tuesday down 7.2%, meaning Wednesday’s bounce was in part a recovery from those losses. For the year through Tuesday, the stock was still down about 5.9%.

KeyBanc analyst Bradley B. Thomas, who rates LZB at Overweight with a $46 price target, said the results were a relief after earlier concerns about weather hurting sales.

Margin Expansion and Retail Growth

Adjusted operating margin expanded to 9.9% from 9.4% in the prior year quarter. GAAP operating margin improved 200 basis points to 7.2%.

The retail segment was a bright spot, with written sales up 11% and delivered sales rising 9% to $270 million, driven by acquired and new stores. Same-store sales did dip 2%, though that was an improvement from the prior quarter.

La-Z-Boy now operates 230 company-owned stores across North America, representing 61% of its 378-store total network. That expansion has been a deliberate push — the company has been buying up independent dealer locations to grow its own footprint.

Strategic Moves Wrapped Up

La-Z-Boy completed its exit from the American Drew and Kincaid wholesale casegoods businesses in May. It also finalized a U.K. supply chain restructuring in April. Both moves had been flagged as part of a broader effort to streamline operations.

For Q1, the company guided for sales of $490–$510 million. The midpoint of $500 million sits just above the $495 million Wall Street was expecting.

Adjusted operating margin for Q1 is expected to land between 4.0% and 5.5%. The company noted that Q1 is typically its weakest quarter due to seasonal patterns and an annual plant shutdown.

Futures tracking the S&P 500 were up 0.1% ahead of Wednesday’s open.

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