La-Z-Boy reports mixed FQ4, sets outlook for 'considerable volatility'

La-Z-Boy (NYSE:LZB) shares are struggling for direction in Tuesday’s postmarket trading as stronger-than-anticipated fiscal Q4 sales were met with a miss on profits and guidance that assumes “higher levels of uncertainty in the broader economic climate.”

Led by an 8% increase in retail sales and 2% increase in its wholesale segment, La-Z-Boy (NYSE:LZB) net sales increased by 3% during the quarter to $571M, beating expectations by more than $13M. However, despite increased sales, adjusted earnings per share decreased by 3% to $0.92 per share from a year ago, missing the consensus estimate by a penny.

“We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty. We are controlling what we can control with distinct strategies and initiatives across each of our businesses,” CEO Melinda Whittington said.

Looking ahead to the current quarter,  “uncertainty in the broader economic climate and considerable volatility during the quarter” leads the company to plan prudently to navigate the year ahead.

As such, La-Z-Boy (NYSE:LZB) expects “modest growth in a challenged consumer environment” with sales anticipated to be down 1.2% to up 2.8%, representing a range of $490M to $510M. This compares to estimates of $507.9M.

Adjusted operating margin to be within a range of $5.5% to 7%, versus 6.5% in the same quarter last year.

La-Z-Boy (LZB) shares are fluctuating between slight gains and losses in after-hours trading.