La-Z-Boy earnings beat drives 20% jump, $300m buyback
La-Z-Boy Incorporated shares surged 19.6% in pre-market trading after the company reported fiscal fourth-quarter earnings per share of $1.26, significantly beating analyst estimates. Revenue reached $570.34 million, and the company announced a new $300 million share repurchase program alongside a strong balance sheet with $303 million in cash. For the full fiscal year, consolidated sales hit $2.1 billion, driven by a 6% increase in retail sales and a record number of new store openings.
*this image is generated using AI for illustrative purposes only.
La-Z-Boy Incorporated shares jumped 19.6% to $41.94 in pre-market trading after the furniture maker reported fiscal fourth-quarter results that topped analyst estimates and announced a $300 million share buyback. The company projects first quarter fiscal 2027 sales between $490 million and $510 million, exceeding the analyst consensus estimate of $495.449 million.
Earnings per share for the quarter came in at $1.26, crushing the analyst estimate of $0.82 by 53.7%. This marked a 36.96% increase over earnings of $0.92 per share from the same period last year. The company posted a revenue of $570.34 million, surpassing the estimate of $569.23 million by 0.20%, despite a 0.12% decrease compared to the prior year's sales of $571.00 million.
Operational Performance
La-Z-Boy reported a GAAP operating margin of 7.2% and an adjusted operating margin of 9.9%, up 50 basis points versus the prior year. Its retail segment written sales rose 11% versus a year ago. Company-owned locations reached an all-time high of 230 across North America, representing 61% of the total network.
For the full fiscal year, consolidated sales reached $2.1 billion, with a 6% increase in retail sales and the opening of 15 net new stores. The company maintained a strong balance sheet with $303 million in cash and no external debt, returning $85 million to shareholders through dividends and share repurchases.
Strategic Outlook
CEO Melinda D. Whittington said the company is "playing offense, led by our Retail business expansion through new stores, acquisition of independent stores, and delighting consumers across our network." CFO Taylor Luebke guided first quarter fiscal 2027 sales in the range of $490–$510 million with adjusted operating margin of 4.0–5.5%, adding that "our first quarter is generally the lowest sales and operating margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown."
| Metric | Q4 Value | Estimate | Change |
|---|---|---|---|
| Earnings Per Share | $1.26 | $0.82 | +53.7% |
| Revenue | $570.34 million | $569.23 million | +0.20% |
| Adjusted Operating Margin | 9.9% | N/A | +50 bps |
The stock has traded between a 52-week high of $41.06 and a 52-week low of $29.03. LZB closed the regular session on Tuesday down 7.20% at $35.06.
How will La-Z-Boy utilize its debt-free balance sheet and $303 million in cash to accelerate the acquisition of independent stores?
Can the company sustain its retail segment growth momentum beyond the first quarter despite the projected dip in operating margins?
What specific strategic initiatives will management implement to mitigate the seasonal impact of the annual plant shutdown on Q1 profitability?
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