Wall Street gave up early gains on Wednesday as tech stocks tumbled under renewed pressure, dragging the Nasdaq into the red. Markets are treading cautiously ahead of Jerome Powell’s Jackson Hole speech, while Fed minutes revealed increasing internal discord.
Shares of furniture company La-Z-Boy (NYSE:LZB)
fell 13% in the afternoon session after the company reported disappointing second-quarter results and issued a weak forecast for the upcoming quarter. The furniture maker's adjusted earnings per share of $0.47 missed Wall Street's expectations by nearly 11%. While its revenue of $492.2 million was in line with estimates, it remained flat compared to the same period last year, signaling stagnant sales. Adding to investor concerns, La-Z-Boy's revenue guidance for the third quarter also came in below analysts' projections. Profitability took a hit as well, with the company's operating margin declining to 4.5% from 6.5% a year ago, indicating that rising costs were squeezing profits. This combination of missed earnings, a weak outlook, and shrinking profitability prompted a significant sell-off in the stock.
Furniture company La-Z-Boy (NYSE:LZB) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $492.2 million. On the other hand, next quarter’s revenue guidance of $520 million was less impressive, coming in 1.6% below analysts’ estimates. Its non-GAAP profit of $0.47 per share was 10.8% below analysts’ consensus estimates.
As we await the opening of the US market on Wednesday, let's delve into the pre-market session and discover the top gainers and losers shaping the early market sentiment.
La-Z-Boy shares plunged 23.55% after hours as weak first-quarter earnings and falling sales missed expectations, driven by a sharp drop in Joybird performance.
Furniture company La-Z-Boy (NYSE:LZB) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $492.2 million. On the other hand, next quarter’s revenue guidance of $520 million was less impressive, coming in 1.6% below analysts’ estimates. Its non-GAAP profit of $0.47 per share was 10.8% below analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
The performance of consumer discretionary businesses is closely linked to economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 6.1% over the past six months. This drawdown is a far cry from the S&P 500’s 5.3% ascent.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at home furnishings stocks, starting with La-Z-Boy (NYSE:LZB).
Shares of furniture company La-Z-Boy (NYSE:LZB)
fell 3.2% in the afternoon session after the company warned that its first-quarter results would likely be at the low end of its prior guidance.
