La-Z-Boy stock unchanged as Sidoti reiterates Neutral rating

Published 15/07/2025, 14:38
La-Z-Boy stock unchanged as Sidoti reiterates Neutral rating

Investing.com - Sidoti has reiterated its Neutral rating and $46.00 price target on La-Z-Boy (NYSE:LZB), following the furniture maker’s acquisition announcement. According to InvestingPro data, La-Z-Boy currently generates annual revenue of $2.1 billion and maintains a strong financial health rating of GOOD.

La-Z-Boy announced it will acquire 15 La-Z-Boy dealer stores and four warehouses from Atlanta Furniture Galleries, LLC, which is owned by Tom and Amy DeGoey.

The transaction, which represents La-Z-Boy’s largest dealer store acquisition to date, is expected to close in October.

The acquisition will strengthen La-Z-Boy’s retail store network in Georgia, Florida, and Tennessee, which Sidoti describes as "demographically advantaged states."

The deal is expected to add approximately $40 million in consolidated annual sales to La-Z-Boy’s business.

In other recent news, La-Z-Boy announced that its fiscal first-quarter results are expected to be at the low end of its previously issued guidance, citing challenges in the consumer and macroeconomic environment. The company now anticipates sales around $490 million, reflecting ongoing pressure on consumer spending for home furnishings. Meanwhile, La-Z-Boy reported fourth-quarter earnings for fiscal year 2025, with an adjusted earnings per share (EPS) of $0.92, which missed the forecast of $0.98. However, the company’s revenue of $571 million surpassed expectations, marking a 2.29% surprise over the anticipated figure. KeyBanc has maintained an Overweight rating on La-Z-Boy, noting the company’s acquisition of an independent store, which could potentially add $0.10 annually to earnings per share. The investment firm also highlighted La-Z-Boy’s strong balance sheet and discounted valuation. Looking ahead, La-Z-Boy plans to expand its store network and redesign its distribution network to enhance efficiency.

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