Shares of La-Z-Boy Inc. (NYSE: LZB) plummeted 5.22% in the pre-market session on Thursday, following the release of its fiscal Q3 2025 earnings results. Despite reporting a 4% increase in consolidated delivered sales to $522 million, driven by strong growth in the retail segment, the company's stock faced selling pressure due to ongoing challenges in the housing market and concerns over macroeconomic headwinds.

During the quarter, La-Z-Boy's retail segment delivered an impressive 11% increase in sales, supported by acquisitions, new store openings, and a robust 7% same-store sales growth. The company's Joybird business also gained momentum, with a 10% increase in written sales and achieving break-even profitability. However, the international wholesale business faced significant challenges due to a customer transition in the UK, impacting overall margins.

While La-Z-Boy reported a 20-basis-point increase in non-GAAP operating margin to 6.8% and GAAP and non-GAAP diluted EPS of $0.68, the company acknowledged the continued choppy macroeconomic environment. Housing affordability remains a major concern, with existing home sales near 30-year lows and steep mortgage rates impacting consumer demand for furniture and home furnishings.

In the earnings call, La-Z-Boy's management highlighted their efforts to navigate the challenging industry landscape through strategic initiatives under the Century Vision growth strategy. This includes expanding the company-owned retail footprint, strengthening partnerships with regional retailers, and optimizing the Joybird brand for balanced growth and profitability. However, the company expects the housing fundamentals and global trade policy uncertainties to continue posing risks in the near term.