La-Z-Boy tops Q4 estimates as retail growth offsets Joybird weakness

La-Z-Boy Inc. reported fiscal fourth-quarter adjusted earnings of $1.26 per share, topping the $0.82 analyst consensus by more than 50 percent.

The company said lower delivered volume in its Joybird brand partially offset growth in its company-owned retail stores, which benefited from new store openings across the US.

Revenue reached $570.3 million in the period ended April 26, edging past the $569.2 million average estimate. On a GAAP basis, net income totaled $33.3 million, or 81 cents per share. For the full fiscal year, profit came in at $102 million, or $2.47 per share, on revenue of $2.13 billion.

The results show La-Z-Boy's brick-and-mortar expansion strategy is gaining traction even as its direct-to-consumer Joybird brand faces demand headwinds. For the current quarter ending in July, the Monroe, Michigan-based company forecast revenue of $490 million to $510 million, a range that implies a seasonal slowdown from the fiscal fourth quarter.

The adjusted earnings beat stands out against a backdrop of uneven demand across the broader home furnishings sector. Rivals such as RH and Ethan Allen have reported mixed results as higher interest rates continue to pressure the housing market and dampen consumer spending on big-ticket furniture items.

La-Z-Boy shares have gained about 12 percent over the past 12 months, outperforming the S&P 500's consumer discretionary sector. The guidance raise signals management expects its retail expansion to sustain momentum. Investors will watch the fiscal first-quarter earnings call for updates on Joybird's turnaround efforts and same-store sales trends at company-owned locations.

This article is for informational purposes only and does not constitute investment advice.