La-Z-Boy Incorporated (LAZ) AI Stock Analysis

Company Guidance

La‑Z‑Boy guided Q2 sales of $500–$520 million (down 1% to up 2% excluding the wholesale Casegoods divestiture) with adjusted operating margin of 4.0%–5.5%, reiterated full‑year capex of $90–$110 million and a normalized full‑year effective tax rate of 26%–27%; they plan to open ~10 new stores in fiscal '27 as part of expansion toward a 450‑store footprint (currently ~380 total stores, 234 company‑owned = 62% of network), enter Q2 with a solid wholesale backlog, and expect near‑term friction costs from supply‑chain projects and Joybird integration. Management noted Q1 metrics including consolidated sales down 3% (down 1% ex‑Casegoods), consolidated adjusted operating margin of 3.9% (GAAP operating loss $2M), adjusted EPS $0.43 (GAAP EPS -$0.06), retail delivered sales up 10% to $229M with retail written sales +16% and written same‑store +3%, wholesale delivered sales $323M (down 9% reported, down 5% ex‑Casegoods), Joybird written sales down 17% (delivered sales $27M), consolidated adjusted gross margin +290 bps, adjusted SG&A +380 bps, cash $267M with no external debt, $291M remaining repurchase authorization, and a capital allocation goal to reinvest 50% of operating cash flow and return 50% to shareholders.