Shares of La-Z-Boy Incorporated (NYSE: LZB) surged 5.62% in after-hours trading on Tuesday following the release of the company's second-quarter fiscal 2026 earnings report, which exceeded analyst expectations and provided an optimistic outlook for the third quarter.
The furniture retailer reported adjusted earnings per share of $0.71 for the quarter, significantly beating the analyst consensus estimate of $0.61. This strong performance was matched by a slight increase in sales, which reached $522.48 million, marginally surpassing the expected $522.41 million. The company's wholesale segment was a particular bright spot, with sales increasing by 2% and operating margin expanding to 8.1% on an adjusted basis.
Investors were also encouraged by La-Z-Boy's forward-looking statements. The company expects fiscal third-quarter sales to be in the range of $525-545 million, representing a growth of 1-4% year-over-year. Additionally, La-Z-Boy anticipates an adjusted operating margin between 5.0-6.5% for the upcoming quarter. These projections, coupled with the company's strategic initiatives, including the completion of a 15-store acquisition in the southeast U.S. and ongoing efforts to optimize its portfolio, appear to have bolstered investor confidence in La-Z-Boy's growth trajectory.
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