NEW YORK - La-Z-Boy Incorporated (NYSE:LZB) reported better-than-expected first quarter results on Tuesday, but shares fell 3.6% in after-hours trading as the company's guidance came in below analyst expectations.
The furniture manufacturer and retailer posted adjusted earnings per share of $0.62 for the fiscal first quarter ended July 27, beating the analyst consensus of $0.58. Revenue rose 3% YoY to $495.5 million, also topping estimates of $482.3 million.
However, La-Z-Boy's outlook for the current quarter fell short of Wall Street projections. The company expects second quarter revenue between $495 million and $515 million, below the $518.4 million analysts were forecasting.
"The overall macroeconomic and consumer spending environment remains challenging," said Bob Lucian, Chief Financial Officer of La-Z-Boy. "Looking forward, our industry will remain under pressure in the near term as the market contends with still high interest rates, muted housing turnover, and an uncertain economic and geopolitical environment."
For the first quarter, La-Z-Boy's Wholesale segment sales increased 5% to $351 million, driven by higher delivered volume to external customers. However, Retail segment sales decreased 3% to $202 million as the prior year benefited from delivery of residual backlog.
The company generated $52 million in operating cash flow during the quarter, more than double the $26 million from the same period last year. La-Z-Boy returned approximately $42 million to shareholders through share repurchases and dividends.
"We continue to deliver positive results amidst a challenging macroeconomic backdrop," said Melinda D. Whittington, President and CEO. "We were pleased to return to delivered sales growth in the quarter, led by our Wholesale segment."
Despite the earnings beat, investors appeared focused on the softer-than-expected guidance, sending shares lower in extended trading. La-Z-Boy stock closed Tuesday's regular session up 1.1% at $31.45.
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