La-Z-Boy warns Q1 sales likely at low end of guidance; acquires 15 independently owned stores across the south
La-Z-Boy's stock price declined after the company projected that its fiscal first-quarter sales and adjusted operating margin would be at the lower end of guidance due to a challenging consumer and macro environment.
The company expects sales to decrease by 1.2% to increase by 2.8% and anticipates an adjusted operating margin between 5.5% and 7% for the upcoming period.
La-Z-Boy recently announced the acquisition of 15 furniture galleries and four warehouses, anticipated to finalize by the end of October, which will increase its total company-owned stores to 220, comprising 60% of its network.
Following the announcement and revised forecasts, La-Z-Boy shares fell by 2.6% in the latest trading session.
Recommendation Rating: Cautiously Watch
La-Z-Boy (NYSE:LZB) experienced a decline in its stock price during Monday's after-hours trading following the company's announcement that its fiscal first-quarter sales and adjusted operating margin are projected to fall towards the lower end of its previously issued guidance. This adjustment is attributed to a "challenging consumer and macro environment."
In the financial report for fiscal Q4 released last month, La-Z-Boy indicated expectations for sales to decrease by 1.2% to increase by 2.8%. Additionally, the adjusted operating margin was anticipated to be between 5.5% and 7%.
This downgraded forecast overshadowed La-Z-Boy's recent acquisition of 15 independently operated La-Z-Boy Furniture Galleries and four warehouses from Atlanta Furniture Galleries, LLC. The newly acquired locations are based in Georgia, Florida, and Tennessee, collectively generating approximately $80 million in annual sales. The acquisition is expected to finalize by the end of October, resulting in a total of 220 company-owned stores, which will account for 60% of the entire La-Z-Boy network.
In the most recent trading session, shares of La-Z-Boy fell by 2.6%.
Source: Press Release