La-Z-Boy shares plunge amid weak housing market demand

La-Z-Boy shares experienced their steepest decline in four and a half years following second-quarter guidance that missed analyst expectations. The company forecasted second-quarter sales of $475.7 million, a 3% decrease from the previous year and significantly lower than the $537 million average estimate. Adjusted earnings were reported at 43 cents per share, falling below the 49-cent analyst estimate.

The decline is attributed to a stagnant housing market where high mortgage rates and record home prices have reduced transaction volumes. This lack of housing turnover has suppressed demand for big-ticket discretionary items like sofas and recliners.

This trend reflects broader economic conditions affecting the home improvement and furniture sectors, with similar sluggish demand noted by companies such as Home Depot, Lowe’s, Wayfair, RH, and Williams-Sonoma.