The company is known for its signature recliners and also offers a range of sofa and furniture items.
Furniture company La-Z-Boy (LZB) on Tuesday reported higher-than-expected fourth-quarter revenue, driven by new store additions and strength in the North American market.
Shares of the company gained nearly 1% in extended trading, and retail sentiment climbed higher.
La-Z-Boy is known for its signature recliners and also offers a range of sofa and furniture items under the flagship brand, as well as Joybird, England Furniture, American Drew, and Kincaid.
The company sells through retail and wholesale channels.
Revenue rose 3% to $570.9 million in the quarter ended April 26, above the $557.4 million estimate from analysts polled by FactSet.
Earnings per share were $0.92, down from $0.95 a year earlier, and below expectations of $0.93.
Overall, revenue increased by 3% in fiscal 2025, while net income declined by 19%. La-Z-Boy sales declined in fiscal years 2023 and 2024.
The company opened 11 new stores and acquired seven La-Z-Boy Furniture Galleries from franchisee partners in FY25.
The furniture industry is facing a slowdown as inflation-weary consumers pull back on discretionary spending. Demand has also been pressured by a decline in new home sales in recent years, a key driver for the segment.
"We are controlling what we can control," CEO Melinda Whittington said.
Whittington acknowledged "depressed housing fundamentals and growing macro uncertainty,” adding that "a strong balance sheet combined with an agile supply chain provides us a position of strength in the industry."
On Stocktwits, retail sentiment was 'extremely bullish' as of late Tuesday, compared to 'bullish' the previous day, while 24-hour message volume surged by 1,100% — the most among consumer stocks.
A user said they expect the stock to go up at least $40.
La-Z-Boy shares are down 11% year-to-date.
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