La-Z-Boy shares plunged 23.55% after hours as weak first-quarter earnings and falling sales missed expectations, driven by a sharp drop in Joybird performance.
Furniture company La-Z-Boy (NYSE:LZB) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $492.2 million. On the other hand, next quarter’s revenue guidance of $520 million was less impressive, coming in 1.6% below analysts’ estimates. Its non-GAAP profit of $0.47 per share was 10.8% below analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
The performance of consumer discretionary businesses is closely linked to economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 6.1% over the past six months. This drawdown is a far cry from the S&P 500’s 5.3% ascent.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at home furnishings stocks, starting with La-Z-Boy (NYSE:LZB).
Shares of furniture company La-Z-Boy (NYSE:LZB)
fell 3.2% in the afternoon session after the company warned that its first-quarter results would likely be at the low end of its prior guidance.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Furniture company La-Z-Boy (NYSE:LZB) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 3.1% year on year to $570.9 million. The company expects next quarter’s revenue to be around $500 million, close to analysts’ estimates. Its non-GAAP profit of $0.92 per share was 1.1% below analysts’ consensus estimates.
Furniture company La-Z-Boy (NYSE:LZB) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 3.1% year on year to $570.9 million. The company expects next quarter’s revenue to be around $500 million, close to analysts’ estimates. Its non-GAAP profit of $0.92 per share was 1.1% below analysts’ consensus estimates.
