Overview

* La-Z-Boy ( LZB ) fiscal Q2 sales slightly beat analyst expectations

* Adjusted EPS for fiscal Q2 beats analyst expectations

* The furniture retailer completed 15-store acquisition, plans to exit non-core businesses

Outlook

* Company expects fiscal Q3 sales between $525 mln and $545 mln

* La-Z-Boy ( LZB ) anticipates Q3 adjusted operating margin of 5.0-6.5%

* Company cites uncertain macroeconomic backdrop affecting Q3 outlook

Result Drivers

* RETAIL SALES GROWTH - Co reports 4% increase in Retail segment written sales, driven by new and acquired stores

* WHOLESALE MARGIN EXPANSION - Co attributes Wholesale segment margin improvement to lower warranty expenses and increased advertising

* STRATEGIC INITIATIVES - Co completed acquisition of 15-store network in southeast U.S., contributing to Retail segment growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Slight $522.48 $522.41

Beat* mln mln (3

Analysts

)

Q2 Beat $0.71 $0.61 (3

Adjusted Analysts

EPS )

Q2 EPS $0.70

Q2 7.10%

Adjusted

Operatin

g Margin

Q2 6.90%

Operatin

g Margin

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the home furnishings peer group is "hold"

* Wall Street's median 12-month price target for La-Z-Boy Inc ( LZB ) is $41.00, about 28.4% above its November 17 closing price of $29.34

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)