By Tiffany Williams –
La-Z-Boy Inc., the Michigan-based company synonymous with recliner chairs, experienced a rollercoaster week as its stock plunged and then rebounded following news from the Trump administration about potential furniture tariffs.
Last week, shares of La-Z-Boy fell sharply after the company set guidance below analyst expectations. The fiscal first quarter of 2026 brought mixed results, with total sales declining 1% year-over-year to $492 million. The retail segment, however, saw a 5% increase in overall sales and a 2% gain in delivered sales, while the wholesale segment only improved 1%. Adjusted operating margin narrowed to 4.8% from 6.6% a year earlier, and adjusted earnings per share fell 24% to $0.47, below the analyst consensus of $0.53. Cash flow from operations totaled $36 million, with $22 million returned to shareholders through dividends and buybacks.
La-Z-Boy operates nearly 210 company-owned La-Z-Boy Furniture Galleries stores, forming part of a broader network of almost 370 stores. Joybird, its omni-channel modern furniture brand, currently operates 14 stores in the U.S., opening one new location in fiscal Q2 2026. The company also announced a planned acquisition of 15 stores in the Southeast, expected to close in October, and the successful transition of its Arizona distribution center to a new West Coast hub. Looking ahead, La-Z-Boy forecast Q2 sales between $510 million and $530 million, falling slightly short of the $532 million consensus.
CEO Melinda Whittington noted that the company is balancing optimism in long-term industry fundamentals with a pragmatic approach to current uneven consumer demand. “While continuing to advance our Century Vision strategy and drive long-term shareholder value, we are evaluating all alternatives to address financial pressure from non-core parts of our enterprise,” Whittington said. She emphasized the company’s iconic brand, vertically integrated model, and robust balance sheet as foundations for future growth.
On Friday, President Trump announced an investigation into imported furniture, signaling potential new tariffs. “Within the next 50 days, that investigation will be completed, and furniture coming from other countries into the United States will be tariffed at a rate yet to be determined,” he wrote on Truth Social. He added that the move would bring furniture production back to states including North Carolina, South Carolina, and Michigan.
La-Z-Boy, which manufactures primarily in the U.S., is unlikely to be significantly affected by new tariffs, giving investors reason to lift the company’s stock. However, the broader U.S. furniture industry could face challenges, with companies such as Wayfair seeing demand for high-ticket furniture items weaken amid a slower housing market and uncertainty over interest rates.
Despite the mixed results and market turbulence, La-Z-Boy’s stock ended the week higher, reflecting investor confidence in its domestic manufacturing base and long-term strategic position.