LA-Z-BOY INC (NYSE:LZB) reported its fiscal 2026 third-quarter results, delivering a mixed financial performance that has been met with a sharp negative reaction in after-hours trading. The furniture manufacturer and retailer posted sales that modestly exceeded Wall Street's expectations, but earnings per share fell short of consensus estimates. Furthermore, the company's outlook for the upcoming quarter appears to be a primary driver behind the stock's significant decline.
Quarterly Performance Versus Estimates
The company reported revenue of $542 million for the quarter ended January 24, 2026, representing a 4% increase over the prior year period. This top-line figure narrowly surpassed analyst expectations. On the bottom line, however, the company's adjusted earnings per share (EPS) of $0.61 came in below the Street's forecast.
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Reported Revenue: $542 million
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Analyst Revenue Estimate: ~$538.9 million
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Result: Beat by approximately 0.5%
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Reported Adjusted EPS: $0.61
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Analyst EPS Estimate: $0.65
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Result: Miss by approximately 6.4%
Market Reaction and Forward Guidance
The immediate market response was decisively negative, with the stock falling nearly 9% in after-hours trading following the report. This reaction suggests investor focus has shifted from the slight revenue beat to concerns about profitability and future growth. A key point of contention appears to be the company's guidance for the fiscal fourth quarter.
While not explicitly stated in the provided press release highlights, contextual news reports indicate La-Z-Boy issued revenue guidance of $570 million for Q4 CY2025 (which aligns with the company's Q4 FY2026). This forecast falls meaningfully short of the analyst consensus estimate of approximately $595.1 million for the coming quarter, representing a shortfall of about 4.2%. The combination of an EPS miss and soft forward guidance has likely fueled the sell-off.
Strategic Highlights from the Quarter
Beyond the headline numbers, La-Z-Boy's press release emphasized progress on its strategic initiatives and strength in its core retail segment. The company highlighted double-digit growth in retail sales as a primary driver.
- The Retail segment saw written sales increase by 11%, indicating strong customer demand at its company-owned Furniture Galleries stores.
- This growth was partially offset by a decline in sales from Joybird, its e-commerce focused modern furniture brand.
- The company reported an adjusted operating margin of 6.1% for the quarter.
- Management stated the quarter reflected "significant progress" on its long-term strategic plans, though the details of that progress were not specified in the provided excerpt.
Analyst Estimates and Full-Year Picture
Looking ahead, analysts have established estimates for the full fiscal year. The current sales estimate for FY2026 stands at approximately $2.16 billion, with a revenue estimate of about $2.67 billion. The significant discrepancy between the upcoming quarter's guidance and analyst expectations for that period will be a critical area for management to address in subsequent earnings calls, as it may prompt revisions to the full-year outlook.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data here: LZB Earnings & Estimates.
Conclusion
La-Z-Boy's third-quarter results present a tale of two narratives: operational strength in its main retail channel contrasted with a profitability miss and a concerning guidance outlook. The market's harsh after-hours reaction underscores the weight investors are placing on future earnings potential and management's ability to meet forecasts. While the company is demonstrating growth in its core business, challenges at Joybird and the projected slowdown in the next quarter have introduced uncertainty, leading to a reevaluation of the stock's near-term prospects.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
