Overview

• U.S. furniture retailer's fiscal Q4 sales were flat yr/yr, slightly beating analyst expectations

• Adjusted EPS for fiscal Q4 beat consensus, aided by improved margins and tax items

• Company authorized new $300 mln share repurchase program, replacing prior authorization

Outlook

• La-Z-Boy expects Q1 sales between $490 mln and $510 mln, reflecting organic growth up to 4%

• Company sees Q1 adjusted operating margin in the range of 4.0%-5.5%

• Company says Q1 is typically lowest for sales and margin due to seasonal plant shutdown

Result Drivers

• RETAIL EXPANSION - Growth in company-owned stores and acquisitions drove higher written and delivered sales in the Retail segment

• MARGIN IMPROVEMENT - Adjusted operating margin rose, helped by favorable inventory adjustments and pricing in the casegoods business prior to divestiture, and positive impact from acquisitions

• JOYBIRD WEAKNESS - Lower delivered volume in the Joybird business offset gains in other segments

Company press release: ID:nPnl0Y5Ya

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Slight Beat*	$570 mln	$569.23 mln (3 Analysts)
Q4 Adjusted EPS	Beat	$1.26	$0.82 (3 Analysts)
Q4 EPS		$0.81
Q4 Adjusted Operating Margin		9.90%
Q4 Operating Margin		7.20%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "hold."

• Wall Street's median 12-month price target for La-Z-Boy Inc is $44.50, about 17.8% above its June 15 closing price of $37.78

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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