Company Overview - La-Z-Boy Inc. is represented by Melinda Whittington, who serves as the Board Chair, President, and CEO, having joined the company in 2018 as CFO before becoming CEO in 2021 [2] - Taylor Luebke, the Senior Vice President and CFO, joined La-Z-Boy in 2021 and was promoted to CFO at the beginning of the current year [2] - Mark Becks holds the position of Director of Investor Relations and Corporate Development at La-Z-Boy [2] Event Context - The discussion takes place at the Goldman Sachs 32nd Annual Global Retailing Conference, indicating a significant platform for retail industry insights [1]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Retail Segment - The Retail segment includes nearly 210 company-owned La-Z-Boy Furniture Galleries® stores, part of a broader network of approximately 370 stores nationwide [3] - Joybird®, an omni-channel retailer and manufacturer of modern upholstered furniture, operates 14 stores in the U.S., with one new store opened in fiscal 2026 Q2 [3] Wholesale Segment - In the Wholesale segment, La-Z-Boy manufactures custom furniture for Furniture Galleries® and various retail channels [3] - England Furniture Co. offers custom upholstered furniture, while casegoods brands Kincaid®, American Drew®, and Hammary® provide diverse home furnishings [3] Upcoming Events - La-Z-Boy will participate in a fireside chat at the Goldman Sachs 32nd Annual Global Retailing Conference in New York, scheduled for September 4, 2025, at 1:10 p.m. ET [1]

Core Viewpoint - La-Z-Boy (LZB) is currently rated as a Zacks Rank 5 (Strong Sell) due to a recent earnings miss and subsequent stock sell-off [1] Company Overview - La-Z-Boy, Inc. is involved in the production, manufacturing, and distribution of residential furniture, operating through Wholesale, Retail, and Corporate and Other segments [2] - The Wholesale segment manufactures and imports various upholstered furniture, while the Retail segment sells these products directly to consumers through company-owned stores [2] Earnings History - The company has beaten the Zacks Consensus Estimate in two of the last four quarters and missed in two, which does not solely determine its Zacks Rank [4] - The most recent quarter reported an EPS of $0.47, missing the consensus estimate of $0.53 by 6 cents, resulting in a negative earnings surprise of 11.3% [5] Earnings Estimates - Recent earnings estimates for La-Z-Boy have been revised downward, with the current fiscal year consensus dropping from $3.20 to $2.86 and the next fiscal year from $3.44 to $2.75 over the last 60 days [6] - The negative movement in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6] Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [7]

Core Insights - The article emphasizes the importance of understanding that past performance does not guarantee future results, highlighting the need for careful analysis before making investment decisions [2][3] Group 1 - The article discusses the role of analysts in providing insights and opinions on various companies and industries, noting that these opinions may not reflect the views of the broader platform [3] - It mentions that the information presented is believed to be factual and up-to-date, but does not guarantee accuracy, indicating the necessity for investors to conduct their own research [2][3] - The article clarifies that no specific investment recommendations are being made, and it is not an offer to buy or sell securities [2][3] Group 2 - The content highlights that analysts may include both professional and individual investors, which could lead to a diverse range of opinions and analyses [3] - It points out that the authors of the article are not receiving compensation for their opinions, suggesting an independent perspective [2] - The article underscores the importance of understanding the limitations of the information provided, as it may not constitute a complete analysis of the discussed subjects [2][3]

Group 1 - The U.S. government is launching a significant tariff investigation on imported furniture, which is expected to impact the furniture industry and potentially bring manufacturing back to states like North Carolina, South Carolina, and Michigan [1] - The furniture import value in the U.S. for 2024 is approximately $25.5 billion, reflecting a 7% increase from 2023, with around 60% of imports coming from Vietnam and China [1] - Companies like Wayfair, RH, and Williams-Sonoma saw their stock prices drop following the announcement, while La-Z-Boy, which produces most of its furniture domestically, experienced a stock price increase [1] Group 2 - The new tariffs have already contributed to a 0.7% increase in home goods prices in July, adding further pressure to an industry already affected by previous tariffs [2] - Demand for new furniture has been declining over the past year, partly due to consumers waiting for lower interest rates and a slowdown in the real estate market [2] - Consumers are becoming more selective with discretionary spending due to persistent inflation, impacting sectors like dining, clothing, travel, and home decor [2]

Company Overview - La-Z-Boy Inc., a Michigan-based furniture manufacturer, is expanding following a recent acquisition in the southeast, which is expected to close in October [7] - The company reported a mixed fiscal first quarter 2026, with total sales declining 1% year-over-year to $492 million, driven by a 5% increase in retail sales but only a 1% improvement in wholesale sales [4][5] Financial Performance - Adjusted operating margin narrowed to 4.8% from 6.6% a year prior, and adjusted earnings per share dropped 24% to $0.47, below the $0.53 analyst consensus [5] - Cash flow from operations totaled $36 million, with $22 million returned to shareholders through dividends and buybacks [5] Market Position and Strategy - La-Z-Boy's retail division consists of nearly 210 company-owned stores and is part of a broader network of nearly 370 stores, including Joybird, which has 14 stores in the U.S. [6] - The company is balancing optimism in long-term industry fundamentals with a pragmatic approach to current consumer demand, as stated by CEO Melinda Whittington [9] Industry Context - The Trump administration has launched an investigation into imported furniture, potentially leading to new tariffs, which may not significantly impact La-Z-Boy due to its U.S.-based manufacturing [10][11] - The U.S. furniture industry is facing challenges, with companies like Wayfair experiencing weakened demand for big-ticket items amid a slower housing market [12]

Core Viewpoint - The Trump administration is investigating imported furniture for potential tariffs, which has led to significant stock declines for companies reliant on foreign manufacturing, while some domestic manufacturers have seen stock increases [1][2][5]. Company Impact - Major home goods companies such as Wayfair, RH, and Williams-Sonoma experienced stock declines of over 6% following the announcement [2][4]. - In contrast, La-Z-Boy's shares rose nearly 2.5% as the company primarily manufactures within the United States [5]. Industry Context - The furniture industry is facing challenges, including a year-long decline in demand for big-ticket items due to a sluggish housing market and persistent inflation affecting consumer spending [9][10]. - The investigation into furniture tariffs is part of a broader trade agenda aimed at reducing reliance on foreign manufacturing and encouraging domestic production, particularly in traditional furniture-making states like North Carolina and South Carolina [11][12]. Trade Relations - The timing of the potential tariffs comes amidst ongoing trade negotiations with global partners, which have provided some market stability, although many disputes remain unresolved [8]. - It is unclear whether the new furniture tariffs would be in addition to existing country-specific duty rates negotiated through bilateral trade deals [7][13].

Group 1 - La-Z-Boy Incorporated experienced a significant decline in share price, dropping 12.1% on August 20th [1] - The decline followed the management's report of financial results for the first quarter [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - The service includes a stock model account and in-depth cash flow analyses of exploration and production firms [2]

Financial Data and Key Metrics Changes - Consolidated sales for the quarter were $492 million, down slightly from the prior year, with a 1% decrease compared to the previous year [7][18] - Consolidated GAAP operating income was $22 million, and adjusted operating income was $23 million, with an adjusted operating margin of 4.8% [19][22] - The company maintained a strong balance sheet with $319 million in cash and no external debt, generating $36 million in cash from operating activities [7][23][24] Business Line Data and Key Metrics Changes - In the Retail segment, delivered sales increased by 2% to $207 million, driven primarily by new and acquired stores, while written sales decreased by 4% in same-store sales [6][19] - The Wholesale segment saw delivered sales grow by 1% to $353 million, with an adjusted operating margin of 7.5%, up from 6.9% [20][22] - Joybird's delivered sales were down 20% to $28 million, with a noted increase in operating loss due to lower delivered volume [21][22] Market Data and Key Metrics Changes - Industry traffic remains depressed, with housing transactions near thirty-year lows, affecting store traffic and same-store sales [10] - Retail public company peers reported same-store sales ranging from down low to mid-single digits, while broader industry data showed recently downwardly revised figures but still in the positive mid-single digit range [10] Company Strategy and Development Direction - The company is focused on its Century Vision strategy to drive long-term shareholder value, including expanding its direct-to-consumer business and enhancing its retail footprint [11][12] - A significant acquisition of a 15-store network in the Southeast U.S. is expected to close in October, which will be the largest independent La Z Boy Furniture Galleries acquisition in the company's history [11][26] - The company is transforming its distribution network to improve supply chain agility, reducing the number of distribution centers from 15 to 3 centralized hubs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to grow sales and outperform the industry while navigating the current consumer environment [8][30] - The company anticipates fiscal second-quarter sales to be in the range of $510 million to $530 million, with adjusted operating margins expected between 4.5% to 6% [27][28] - Management acknowledged the challenges posed by an increasingly pressured consumer and emphasized the importance of prudent navigation through these conditions [36][46] Other Important Information - The company was recognized by Newsweek as one of America's best retailers in 2025, ranking number one in the furniture category [12] - The company plans to open approximately 15 new company-owned and independent La Z Boy Furniture Gallery stores during the year, with a focus on maximizing store productivity [28][29] Q&A Session Summary Question: Can you provide additional color on the sequential improvement in trends during the quarter? - Management noted that there was a sequential traffic improvement through the first quarter, which has continued into early August, but emphasized that it is too early to call it a trend [34][35] Question: How should we think about the ramp of new stores to maturity and its relation to margins? - New stores typically drag on profitability in year one, with improvements expected in year two and becoming neutral to accretive by year three [37] Question: What are you hearing from wholesale customers regarding order hesitancy due to tariffs and pricing uncertainty? - Management indicated that while there is hesitancy among customers, the company benefits from its North American supply chain, allowing it to provide a steady supply of products [39][40] Question: Did you see notable geographic differences in traffic and sales in North America? - Management reported no significant geographic differences, although Canadian sales were impacted by tariffs, leading to a decrease in units sold offset by pricing [44] Question: Can you expand on the evaluation of alternatives to address financial pressure from non-core parts of the business? - The company is focused on expanding the La Z Boy brand and improving performance in challenged areas like Joybird and international business [45][46] Question: How are you thinking about the pace of new store openings and distribution transformation in light of uneven demand? - Management emphasized the importance of playing offense even in challenging times, while also committing to monitor the situation prudently [47][48] Question: Is the higher promotional activity in case goods expected to continue? - Management indicated that the promotional activity was more transitory, aimed at working through non-performing inventory ahead of the key buying season [49]

Group 1 - U.S. stock futures are slightly lower, with S&P 500 futures down approximately 0.1% [1] - La-Z-Boy Incorporated reported weaker-than-expected financial results for Q1 of fiscal 2026, leading to a significant drop in its share price [1][2] - La-Z-Boy expects Q2 revenue to be between $510 million and $530 million, below the estimate of $531.67 million, citing a challenging consumer and macroeconomic environment [2] Group 2 - James Hardie Industries plc shares fell 27% to $20.72 following disappointing quarterly financial results [4] - Celldex Therapeutics, Inc. shares decreased by 16.7% to $20.00 after reporting Phase 2 topline results for Barzolvolimab in Eosinophilic Esophagitis [4] - Alcon Inc. shares declined 12.3% to $79.06 after the company reduced its FY25 sales guidance [4] - Dycom Industries, Inc. shares fell 11% to $240.00 following its second-quarter results [4] - Target Corporation shares dipped 9.8% to $95.00 after its second-quarter earnings report, while reaffirming its 2025 outlook and announcing a new CEO [4] - enCore Energy Corp. shares decreased by 8.5% to $2.36 as the company priced its upsized $100 million convertible senior notes offering [4] - The Estée Lauder Companies Inc. shares fell 8.5% to $82.34 after reporting quarterly results [4] - Novavax, Inc. shares dropped 7% to $8.86 in pre-market trading [4]