La-Z-Boy (LZB) Fell 16% After Hours. Is Retail Growth Hiding a Wholesale Problem?

La-Z-Boy (LZB) reported Q1 2027 earnings, highlighting a 1% decline in total delivered sales, excluding Casegoods divestitures, due to wholesale and Joybird business challenges. Retail sales grew 10%, with same-store sales up 3%. The company returned $35M to shareholders and ended the quarter with $267M in cash. La-Z-Boy is expanding its retail footprint and investing in digital transformation to drive growth.

La-Z-Boy reported Q1 2027 retail growth of 10% and same-store sales up 3%, driven by store expansion and in-store execution. Wholesale performance declined due to seasonal softness. Management guided Q2 sales to $500M-$520M, with margins pressured by supply chain projects and advertising spend. The company is consolidating manufacturing and distribution centers, and divested its wholesale Casegoods business.

The Treasury announced it would double buybacks of longer-term notes, causing 30-year Treasury yields to drop to 5.194% and the Dow Jones to close up 0.22%. Fed minutes indicated potential rate hikes if inflation persists. Moderna's stock surged 175% after successful cancer vaccine trial data. Bitcoin rose above $68,000, driven by Treasury optimism and crypto legislation interest.

La-Z-Boy shares fell 14% after Q2 guidance missed expectations, with sales forecast at $475.7M (down 3% YoY) and adjusted operating margin between 3.9% and 4.8%. Weak housing market conditions are suppressing demand for discretionary furniture items. Analysts cite continued investment pressures and delayed consumer spending as factors. The company's Q1 adjusted earnings were 43 cents per share, below estimates.

Moderna and Merck shares surged 57% and 6% respectively after positive cancer vaccine trial results. Marvell Technology rose 11% following a $12B Google investment deal. Keysight Technologies gained 2% on better-than-expected Q3 results. Lowe's fell 2% after lowering full-year guidance. Target declined 1.5% despite revenue beats. La-Z-Boy dropped 17% on weak Q1 earnings. Mercury Systems slid 9% on lower revenue forecasts. Toll Brothers rose 1% on Q3 earnings beats. Estee Lauder gained 7% after Q

La-Z-Boy (LZB) reported Q1 sales of $475.6M, down from $492.2M YoY, with a net loss of $1.98M vs. $18.29M income last year. EPS was -$0.06 vs. $0.44. Q2 sales forecasted at $500M-$520M, with adjusted operating margin expected at 4.0%-5.5%. Shares fell 17.24% after hours to $33.79.