La-Z-Boy Surges on Earnings and Outlook – Keep an Eye on This Price Level

Shares of furniture maker La-Z-Boy surged over 9% in premarket trading on Tuesday following the release of better-than-expected quarterly results and a positive outlook. CEO Melinda Whittington highlighted that the company’s conversion rates were at record highs, with average ticket and design sales showing an upward trend for the year despite challenges in the furniture industry.

The company reported adjusted earnings of 95 cents per share for the quarter ending April 27, surpassing the consensus estimate of 70 cents per share. While revenue dipped 1% to $554 million, it exceeded expectations of $516.4 million. Looking ahead, La-Z-Boy anticipates net sales of $475 million to $495 million for the current quarter, with a midpoint forecast of $485 million beating estimates.

Whittington acknowledged the industry’s instability due to high interest rates and a sluggish housing market. However, she remains optimistic about La-Z-Boy’s performance against competitors, citing the company’s strong fundamentals. La-Z-Boy plans to drive sales growth in fiscal 2025 through its Century Vision strategy, including the opening of 12 to 15 new La-Z-Boy Furniture Galleries stores in the latter half of the year.

From a technical perspective, La-Z-Boy shares have been trading within a rising wedge pattern, with the stock poised for a potential breakout above the $41 level. A volume-backed move above this key resistance could signal a continuation of the uptrend. As of two hours before the opening bell, La-Z-Boy shares were up 9.1% at $37.20.

As always, it’s important to note that the comments and opinions expressed are for informational purposes only. Investors should consider their own research and due diligence before making any investment decisions. The author of this article does not hold any securities mentioned as of the writing date.

Stay tuned for more updates on La-Z-Boy and other market movers.