La-Z-Boy's stock experienced a significant after-hours plunge of 5.63% following the release of its third-quarter financial results for 2026. The movement occurred in the post-market session, reflecting immediate investor reaction to the latest earnings data.
The company reported revenue growth to US$541.6 million in Q3 2026, up from US$521.8 million in the same period last year. However, this top-line improvement was overshadowed by a sharp decline in profitability metrics. Basic earnings per share fell from US$0.69 to US$0.53 year-over-year, while trailing 12-month net margins compressed from 5.9% to 3.9%.
Further analysis reveals that La-Z-Boy's trailing 12-month EPS dropped to US$2.03 from US$2.96 a year earlier, representing a concerning trend for investors. The stock's premium valuation at approximately 17.9 times earnings, compared to peer averages around 14x, appears increasingly difficult to justify given the current margin pressure and declining earnings trajectory.