La-Z-Boy Incorporated (LZB) shares rebounded sharply in after-hours trading on Tuesday, gaining nearly 17% to $40.99, after the furniture maker reported fourth-quarter profit that significantly exceeded Wall Street forecasts. The surge reversed a 7.2% decline during the regular session, when the stock closed at $35.06.
The company posted net income of $33.3 million, or 81 cents per share, for the quarter ended April 25. On an adjusted basis, which excludes certain one-time items, earnings came in at $1.26 per share, well above the 82 cents expected by analysts surveyed by Zacks Investment Research. Revenue of $570.3 million also edged past the $569.2 million consensus estimate.
The results were bolstered by La-Z-Boy's ongoing retail expansion and a newly announced $300 million share buyback program, which helped offset persistent weakness in same-store sales and at its Joybird unit. The company's store count reached 230 company-owned locations, representing 61% of its total 378-store network.
Chief Executive Melinda Whittington characterized the quarter as a “strong finish to the fiscal year,” noting that the company was “playing offense” through new store openings and acquisitions. Chief Financial Officer Taylor Luebke, however, struck a cautious note, saying the company maintains a “measured view” of the external environment.
Retail written sales, a key metric of customer orders, rose 11% year over year, while delivered sales increased 9%. However, written same-store sales, which exclude new and acquired locations, fell 2%, underscoring the challenging demand environment for big-ticket home goods. Wholesale sales declined 2% to $393 million, and Joybird delivered sales dropped 10% to $32 million. The company also recorded a $20 million goodwill impairment charge related to the Joybird business.
La-Z-Boy provided first-quarter guidance calling for revenue between $490 million and $510 million and an adjusted operating margin of 4.0% to 5.5%. Luebke noted that normal seasonality, including lower summer demand and an annual one-week plant shutdown, would weigh on the July quarter.
The broader furniture market remains under pressure from higher interest rates, subdued housing turnover, and cautious consumer spending. La-Z-Boy’s own filings acknowledge that demand for its products can be delayed when consumers pull back. Tariff-related costs and lower store traffic also pose risks to margins, even as the company adds stores and buys back stock.
Other home-furnishing stocks were mixed in late trading. Ethan Allen fell about 1.7%, Bassett Furniture edged lower, and Hooker Furnishings dropped more than 5%, while the SPDR S&P 500 ETF (SPY) was down about 0.6%.