La-Z-Boy Q1 Earnings: Revenue, EPS Beat Despite 'Depressed' Traffic Trends Across Industry, Shares Slide

La-Z-Boy Inc LZB reported financial results for the first quarter of fiscal 2025 Tuesday after the bell. Here’s a rundown of the report.

Q1 Earnings: La-Z-Boy reported first-quarter revenue of $496 million, beating the consensus estimate of $479.77 million, according to Benzinga Pro. The company reported adjusted earnings of 62 cents per share, beating analyst estimates of 60 cents per share.

Consolidated delivered sales were up 3% year-over-year. Wholesale segment sales increased 5%, driven by growth to external customers. Written sales for the Retail segment, represented by company-owned La-Z-Boy Furniture Galleries, increased 4%. Written same-store sales fell 3% on lower traffic and softer industry-wide demand.

“While the Retail business currently continues to wrestle with depressed traffic trends experienced across our industry, we again delivered strong execution. Conversion rates and design average ticket sales both improved again year-over-year and our in-store teams remain laser-focused on providing the highest level of customer service and showcasing our industry-leading product assortment,” said Melinda Whittington, president and CEO of La-Z-Boy.

“Our high-quality offering of comfortable, custom furniture with quick delivery is resonating in a challenging marketplace. And while we expect industry fundamentals to be volatile for the foreseeable future, we remain confident in our ability to outperform the market and gain share longer term.”

Outlook: La-Z-Boy expects second-quarter revenue to be in the range of $495 million to $515 million versus estimates of $479.7 million. The company noted it plans to continue to invest in its Century Vision strategy and focus on building the business for the long term.

Management will hold a conference call to discuss the company’s quarterly results Wednesday morning at 8:30 a.m. E.T.

LZB Price Action: La-Z-Boy shares were down 3.51% after hours at $40.40 at the time of publication Tuesday, according to Benzinga Pro.

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This illustration was generated using artificial intelligence via Midjourney.