What Happened?
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.
The company cited an "increasingly challenging consumer and macro environment" for the downwardly revised forecast. La-Z-Boy now anticipates that sales for the quarter ending July 26, 2025, will be near the bottom of its previously announced range of $490 million to $510 million. This guidance cut points to persistent headwinds in the home furnishings market, as shoppers remain cautious about making large, discretionary purchases amid ongoing economic uncertainty. The negative outlook overshadowed a separate announcement that La-Z-Boy is acquiring 15 independently owned stores and four warehouses in the southeastern U.S. While the deal is expected to add about $80 million in annual sales and increase the company-owned store count to 220, the near-term concerns about consumer spending weighed more heavily on investor sentiment.
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What Is The Market Telling Us
La-Z-Boy’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
La-Z-Boy is down 12.8% since the beginning of the year, and at $37.65 per share, it is trading 21.6% below its 52-week high of $48.02 from January 2025. Investors who bought $1,000 worth of La-Z-Boy’s shares 5 years ago would now be looking at an investment worth $1,318.
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