La-Z-Boy stock pops on Q4 earnings, expansion forecast

Shares of La-Z-Boy (LZB) are trading higher after reporting a fiscal fourth-quarter earnings beat. On the heels of the report, the furniture company also issued an upbeat sales forecast for its first quarter of 2025 as it looks into expansion to keep up with demand.

Yahoo Finance's Seana Smith and Brad Smith break down La-Z-Boy's earnings and guidance figures.

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This post was written by Angel Smith

Video transcript

Let's take a look at a trending ticker here today.

A lazy boy moving to the upside chairs of just about 18% on the company posting better than expected earnings in the fourth quarter.

Also forecasted upbeat sales for its fiscal Q one.

The maker of recliners also expecting modest sales growth for the year ahead as it plans to open more than 10 new furniture stores.

And when we talk about consumer spending, seeing a pull back there, it actually looks like people are maybe still spending on lazy boy.

When you take a look at what demand is relative to expectations, we're seeing this bit of a jump here of just around 18%.

Also the fact that they are looking to expand their footprint is relatively significant here in order to capitalize on that demand that they're seeing.

I don't know what the lazy boy replenishment rate is like.

But obviously there are some things that investors are looking at within this report and saying, ok, clearly there's some more demand perhaps driven by some of either the new furniture galleries, uh the three additional stores that they're adding on here.

So uh one of the major things though too, for investors to consider, especially within this sales environment here.

Was it actually kind of mirrors what we were talking about within that census bureau data from retail sales just a little bit earlier.

You look at the same comp for the five month period compared to last year sales, furniture stores were higher.

Now you compare that to last year, not everybody needed to replenish the same couch or lazy boy or single chair, whatever it was because they had probably already done all of that either when they were purchasing new homes at low interest rates just coming out of or during the pandemic or when they said we were gonna be spending more time at home anyway.

And so let me just make sure that I stock up on that new lazy boy stock up on that new lazy boy uh maybe for a new part of the house that is being renovated.

So all of these things considered the industry they're saying continues to grapple with higher longer interest rates, housing turnover near 30 year lows negatively impacting store traffic.

However, they are saying that their execution is the strongest it has ever been including conversion rates at all time.

Highs average ticket design sales trending up for the year and they're also expecting industry fundamentals to remain volatile.

We should note for the near term but still confident as of right now.

All right, lazy boy share is rallying today in early trading up just around 18%.