06:28 AM EDT, 06/18/2025 (MT Newswires) -- La-Z-Boy ( LZB ) projected lower fiscal first-quarter sales compared with the prior three-month period, as the furniture manufacturer expects industry volatility to persist amid elevated macroeconomic uncertainty.

Sales are anticipated to come in between $490 million and $510 million for the ongoing quarter, "reflecting modest growth in a challenged consumer environment," Chief Financial Officer Taylor Luebke said in a late Tuesday statement. The company recorded a 3% sales increase in the fourth quarter of fiscal 2025 to $570.8 million, while three analysts polled by FactSet expected $557.4 million.

"Given higher levels of uncertainty in the broader economic climate, we expect the industry outlook to continue to be volatile and we are planning prudently to navigate the year ahead," according to Luebke. "Our first quarter is generally the lowest sales and margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown."

La-Z-Boy ( LZB ) expects its adjusted operating margin to be in a range of 5.5% to 7% for the first quarter, including the impact of transitory pressure from its UK and Joybird businesses, Luebke said. The metric remained flat year over year at 9.4% in the fourth quarter.

Revenue in the fourth quarter was buoyed by acquisitions and new stores in the group's retail segment, as well as continued momentum in its North American wholesale business, the company said. Retail sales advanced 8% to $246.8 million, while written same-store sales fell 5% amid continued traffic weakness in the industry. In the wholesale segment, sales inclined 2% to $402 million.

Adjusted earnings declined to $0.92 from $0.95 in the prior-year quarter, including a $0.10 headwind from unfavorable foreign tax discrete items. Three analysts surveyed by FactSet had estimated non-GAAP EPS of $0.93.

"We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty," Chief Executive Melinda Whittington said. "We are controlling what we can control with distinct strategies and initiatives across each of our businesses."

High mortgage rates and increased global economic volatility weighed on consumer sentiment and negatively impacted the housing market in the quarter, La-Z-Boy ( LZB ) said. On Tuesday, data from the National Association of Home Builders and Wells Fargo showed that US homebuilder confidence in June reached its lowest level since December 2022 amid affordability headwinds and macro uncertainty.