La-Z-Boy Q2 EPS beats estimates on wholesale segment margin expansion

Overview

• La-Z-Boy fiscal Q2 sales slightly beat analyst expectations

• Adjusted EPS for fiscal Q2 beats analyst expectations

• The furniture retailer completed 15-store acquisition, plans to exit non-core businesses

Outlook

• Company expects fiscal Q3 sales between $525 mln and $545 mln

• La-Z-Boy anticipates Q3 adjusted operating margin of 5.0-6.5%

• Company cites uncertain macroeconomic backdrop affecting Q3 outlook

Result Drivers

• RETAIL SALES GROWTH - Co reports 4% increase in Retail segment written sales, driven by new and acquired stores

• WHOLESALE MARGIN EXPANSION - Co attributes Wholesale segment margin improvement to lower warranty expenses and increased advertising

• STRATEGIC INITIATIVES - Co completed acquisition of 15-store network in southeast U.S., contributing to Retail segment growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "hold"

• Wall Street's median 12-month price target for La-Z-Boy Inc is $41.00, about 28.4% above its November 17 closing price of $29.34

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX1MBcNX

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)