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La-Z-Boy guides Q2 2027 sales to $500 million to $520 million
The company said its near-term operating margins will face pressure from friction costs tied to multiple supply chain projects and higher advertising spend.
La-Z-Boy Incorporated outlined its outlook for the second quarter of fiscal 2027, projecting sales of $500 million to $520 million while assuming continued macro volatility and uneven demand patterns, according to a Yahoo Finance summary of the firm’s earnings call.
In the retail segment, the company reported growth of 10% driven by aggressive store expansion and acquisitions, partially offsetting broader furniture market challenges. It also cited positive written same-store sales of 3%, supported by improved in-store execution, including higher conversion rates and average ticket sizes.
On the wholesale side, results were impacted by uneven order patterns and seasonal softness, contributing to fixed cost deleverage. Management also said margins in the near term will be pressured by friction costs from three parallel supply chain projects and increased advertising spend.
La-Z-Boy further discussed ongoing initiatives, including distribution transformation to consolidate 15 centers into 3 hubs by fiscal year-end, targeting 20% less mileage and 30% less square footage. The company said its Joybird manufacturing consolidation is expected to be complete by the end of the fiscal year, and that the wholesale Casegoods business divestiture was completed in May to focus on core upholstery growth.