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La-Z-Boy Incorporated (LZB)
NYSE:LZB
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La-Z-Boy Incorporated
(NYSE:LZB)
Rating:70Outperform
Price Target:
$43.00
▲(14.24%Upside)
La-Z-Boy Incorporated (LZB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend Yield2.82%
Average Volume (3M)516.75K
Price to Earnings (P/E)16.1
Beta (1Y)0.77
Revenue Growth3.04%
EPS Growth-16.49%
CountryUS
Employees10,200
SectorConsumer Cyclical
Sector Strength68
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.92
Shares Outstanding41,167,046
10 Day Avg. Volume439,278
30 Day Avg. Volume516,749
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)1.51
Price to Sales (P/S)0.00
P/FCF Ratio13.55
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda1.45
Forecast
1Y Price Target
$46.00Price Target Upside22.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
La-Z-Boy Incorporated Business Overview & Revenue Model
Company DescriptionLa-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, and entertainment centers. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The company's Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 161 company-owned La-Z-Boy Furniture Galleries stores. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.
How the Company Makes MoneyLa-Z-Boy Incorporated generates revenue primarily through the sale of its home furniture products, which are distributed via company-owned stores, independent retailers, and e-commerce platforms. The company capitalizes on its strong brand identity and a reputation for quality, which allows it to maintain a competitive pricing strategy. Key revenue streams include direct sales of furniture and accessories, licensing agreements for its brand, and royalties from franchised stores. Additionally, La-Z-Boy benefits from strategic partnerships with retailers and designers to expand its market reach and drive sales. The company's commitment to innovation and customer satisfaction helps sustain its profitability in the competitive home furnishings market.
La-Z-Boy Incorporated Earnings Call Summary
Earnings Call Date:Jun 17, 2025
(Q4-2025)
| % Change Since: -2.89%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the core North American business, driven by retail growth and effective cost management, but was offset by challenges in international operations and a significant decline in Joybird's online sales. The company remains optimistic about future growth but acknowledges the current economic uncertainty.Q4-2025 Updates
Positive Updates
Strong Retail Segment Growth
Retail segment sales grew 8% in Q4 and 5% for the year, driven by new stores and acquisitions. The company opened its 200th company-owned La-Z-Boy Furniture Galleries store.
Positive Full Year Financial Performance
Consolidated delivered sales for the year grew 3% to $2.1 billion. Operating cash flow increased by 18% to $187 million, and $113 million was returned to shareholders.
Expansion of Company-Owned Retail Network
The company-owned store footprint now represents 55% of the La-Z-Boy Furniture Galleries network, up from 34% a decade ago.
Effective Cost Management
The company maintained a strong balance sheet with $328 million in cash and no external debt, and adjusted operating margin reached the high end of guidance despite volatility.
Recognition and Brand Strength
La-Z-Boy was named to Newsweek's list of America's Most Loved Brands and Most Trustworthy Companies for 2025.
Negative Updates
Decline in Joybird's Online Sales
Joybird's written sales trends decreased 21% in Q4, with particular weakness in online sales attributed to rising macroeconomic uncertainty.
Challenges in International Wholesale Business
The international wholesale segment faced a significant customer transition, impacting margins and resulting in a goodwill impairment related to the U.K. business.
Decreased Same-Store Sales in Retail Segment
Written same-store sales for the Retail segment decreased 5% versus the prior year fourth quarter due to high mortgage rates and global economic volatility.
Company Guidance
During La-Z-Boy's Fiscal 2025 Fourth Quarter conference call, strong financial results were highlighted despite ongoing economic volatility, driven by the company's Century Vision strategy. The quarter saw consolidated sales of $571 million, marking a 3% increase from the previous year, with the Retail segment growing by 8% and the Wholesale segment by 2%. For the fiscal year, consolidated sales reached $2.1 billion, also up 3%, with Retail sales growing 5% and Wholesale sales 2%. La-Z-Boy generated $187 million in operating cash flow, an 18% increase, and returned $113 million to shareholders. The company maintained a strong balance sheet, ending the year with $328 million in cash and no external debt. Adjusted operating margin was at the high end of their guidance range, and the company completed the year with four consecutive quarters of sales growth. Despite challenges like high mortgage rates affecting consumer sentiment, La-Z-Boy's U.S.-centric manufacturing footprint and strategic investments in its supply chain and Retail network are expected to continue driving growth. The company plans to open approximately 15 new La-Z-Boy Furniture Galleries stores and 3 to 4 new Joybird stores in fiscal 2026, with a focus on further strengthening its supply chain and distribution network.La-Z-Boy Incorporated Financial Statement Overview
Summary
La-Z-Boy maintains a solid financial standing with stable revenue and efficient operations. However, declining profitability and cash flow growth highlight areas for potential improvement. The balance sheet is strong, with manageable debt levels and a robust equity position.Income Statement
La-Z-Boy shows consistent revenue generation with a slight decline in revenue growth from 2023 to 2025. Gross profit margins are stable but have slightly decreased, indicating increased cost pressures. The net profit margin has declined over the years, suggesting reduced profitability. However, the EBITDA margin remains robust, indicating solid operational efficiency.70
Positive
Balance Sheet
The company's debt-to-equity ratio is stable, indicating a prudent balance of debt and equity financing. The equity ratio is favorable, showing a strong equity base relative to assets. ROE is positive but shows a slight downward trend, which might indicate pressure on profitability. Overall, the balance sheet reflects a stable financial position with manageable leverage.75
Positive
Cash Flow
Operating cash flow has been relatively stable, although there was a slight decline from 2023 to 2025. Free cash flow generation is positive, albeit with slower growth compared to previous years. The operating cash flow to net income ratio suggests efficient cash generation relative to income, but the growth rate of free cash flow is modest, indicating potential challenges in maintaining cash flow growth.68
Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.11B | 2.05B | 2.35B | 2.36B | 1.73B |
| Gross Profit | 926.42M | 881.67M | 1.01B | 915.97M | 740.26M |
| EBITDA | 271.31M | 290.76M | 322.84M | 318.68M | 169.41M |
| Net Income | 99.56M | 122.63M | 150.66M | 150.02M | 106.46M |
Balance Sheet | |||||
| Total Assets | 1.92B | 1.91B | 1.87B | 1.93B | 1.79B |
| Cash, Cash Equivalents and Short-Term Investments | 328.45M | 347.91M | 343.37M | 245.59M | 391.21M |
| Total Debt | 490.86M | 481.75M | 445.91M | 430.11M | 362.64M |
| Total Liabilities | 890.19M | 900.08M | 914.17M | 1.11B | 1.00B |
| Stockholders Equity | 1.02B | 1.00B | 941.84M | 810.73M | 773.50M |
Cash Flow | |||||
| Free Cash Flow | 112.99M | 104.58M | 136.35M | 2.42M | 271.96M |
| Operating Cash Flow | 187.27M | 158.13M | 205.17M | 79.00M | 309.92M |
| Investing Cash Flow | -98.39M | -81.55M | -70.12M | -78.37M | -40.70M |
| Financing Cash Flow | -102.61M | -81.23M | -37.14M | -144.56M | -141.05M |
La-Z-Boy Incorporated Technical Analysis
Negative
37.64
Price Trends
40.16
Negative
39.81
Negative
41.29
Negative
Market Momentum
-0.46
Positive
41.85
Neutral
24.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LZB, the sentiment is Negative. The current price of 37.64 is below the 20-day moving average (MA) of 38.43, below the 50-day MA of 40.16, and below the 200-day MA of 41.29, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LZB.
La-Z-Boy Incorporated Risk Analysis
La-Z-Boy Incorporated disclosed 21 risk factors in its most recent earnings report. La-Z-Boy Incorporated reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
La-Z-Boy Incorporated Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $736.71M | 12.84 | 12.09% | 6.74% | -6.32% | -18.35% | |
70 Outperform | $1.56B | 16.10 | 9.84% | 2.82% | 3.04% | -16.49% | |
69 Neutral | $760.70M | 8.05 | 10.89% | ― | -7.47% | -9.07% | |
67 Neutral | ¥252.20B | 13.26 | 6.45% | 2.68% | 5.22% | -11.89% | |
63 Neutral | $1.31B | 45.68 | -2.77% | 4.83% | -2.68% | -56.16% | |
62 Neutral | $1.43B | 14.25 | 8.02% | ― | 1.30% | -44.70% | |
58 Neutral | $161.45M | 65.33 | 1.46% | 5.24% | -7.22% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
LZB
La-Z-Boy Incorporated
38.26
-2.32
-5.72%
AMWD
American Woodmark
52.29
-39.23
-42.86%
BSET
Bassett Furniture
18.71
6.20
49.56%
ETD
Ethan Allen
29.09
2.15
7.98%
MLKN
MillerKnoll
19.50
-7.89
-28.81%
MBC
MasterBrand Inc
11.08
-5.60
-33.57%
La-Z-Boy Incorporated Corporate Events
M&A TransactionsBusiness Operations and Strategy
La-Z-Boy Announces Acquisition of Southeast Stores
Positive
Jul 14, 2025
On July 14, 2025, La-Z-Boy Incorporated announced an asset purchase agreement to acquire a network of 15 La-Z-Boy Furniture Galleries® stores and four warehouses in the southeast United States from Atlanta Furniture Galleries, LLC. This acquisition, expected to close in late October 2025, will increase La-Z-Boy’s company-owned store count to 220, representing 60% of its total network, and is anticipated to be immediately accretive to sales and profits. The acquisition is part of La-Z-Boy’s strategy to expand in the rapidly growing southeast region, despite challenging macroeconomic conditions, and aligns with its Century Vision objectives to grow its Retail and direct-to-consumer segments.
The most recent analyst rating on (LZB) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.
Private Placements and FinancingBusiness Operations and Strategy
La-Z-Boy Enhances Credit Agreement with Key Amendments
Positive
Jul 2, 2025
On July 1, 2025, La-Z-Boy Incorporated entered into a Second Amendment to its Credit Agreement, which extends the maturity date of its Credit Facility to July 1, 2030, increases the accordion basket for additional loans to $125 million, removes the SOFR credit spread adjustment, and decreases the consolidated fixed charge coverage ratio under the financial covenant. This amendment, made with Wells Fargo Bank and other lenders, aims to provide La-Z-Boy with enhanced financial flexibility and potentially improve its operational and market positioning.
The most recent analyst rating on (LZB) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.
Executive/Board ChangesShareholder Meetings
La-Z-Boy Director James Hackett to Step Down
Neutral
Jun 20, 2025
On June 18, 2025, James P. Hackett informed La-Z-Boy Incorporated that he will not be standing for re-election at the company’s 2025 Annual Meeting of Shareholders. His decision is not due to any disagreement with the company’s operations, policies, or practices, and the company expressed gratitude for his service and contributions.
The most recent analyst rating on (LZB) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
La-Z-Boy Reports Strong Q4 and Fiscal 2025 Results
Positive
Jun 17, 2025
La-Z-Boy Incorporated reported strong financial results for the fourth quarter and fiscal year 2025, with sales growth across all segments despite challenges in the housing market and global economic volatility. The company achieved a 3% increase in consolidated sales for both the quarter and the year, expanded its retail footprint significantly, and returned $113 million to shareholders, reflecting its robust operational strategies and market positioning.
The most recent analyst rating on (LZB) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.