La-Z-Boy CEO Melinda Whittington stated that the furniture retailer is "evaluating all alternatives" to address the financial challenges of its non-core businesses.

Key Points

La-Z-Boy's earnings declined due to reduced store traffic and weak performance from its Joybird brand.

Same-store sales dropped 4% year-over-year, while Joybird sales plummeted 14%.

La-Z-Boy CEO Melinda Whittington said the furniture retailer is "evaluating all alternatives" to address the financial pressures from non-core businesses.

La-Z-Boy (LZB) shares fell 13% on Wednesday, following the furniture manufacturer's profit decline caused by reduced customer traffic in stores and weak demand for its Joybird brand.

The company, known for its recliners, reported first-quarter fiscal 2026 adjusted earnings per share of $0.47, down 24% year-over-year, missing analyst expectations of $0.53 according to Visible Alpha survey. Revenue declined 1% to $492.2 million, though this exceeded expectations.

Same-store sales fell 4%, which La-Z-Boy attributed to "intensifying challenges facing consumers." Joybird sales crashed 14%, although its in-store sales outperformed online sales.

CEO Melinda Whittington noted that while the company remains optimistic about its strategy, "we are balancing our optimism about long-term industry fundamentals and our competitive position with a pragmatic response to current consumer demand volatility." Whittington added that La-Z-Boy is "evaluating all alternatives to address the financial pressures from the company's non-core businesses."

CFO Taylor Luebke said the company expects current quarter revenue between $510 million and $530 million. Visible Alpha's consensus estimate is $528 million. Luebke explained that La-Z-Boy is "navigating a persistently challenging consumer and macroeconomic environment."

La-Z-Boy's stock price fell to its lowest level in more than a year.