On Wednesday, La-Z-Boy (NYSE: LZB) shares fell more than 18% after sales of their reclining sofas posted lower sales and earnings than expected. Since the start of their new fiscal year, executives were disappointed due to the increase in first quarter sales were mostly attributed to acquisitions. Throughout their plants, lower volume and low growth of sales of sofas and other furniture have been reported in the period ending on July 29. During the summer, seasonal weakness, slow sales, and continued investments in e commerce and other areas affected profit margins. The company’s operating margin dropped to 8.5% from 11.4% a year ago and traded 18.9% lower to $25.25 early Wednesday.
Last quarter, La-Z-Boy earned $11.7 million which was a decline of 15.2% the previous year. Per share earnings fell to 24 cents from 28 cents. The company’s profit was 21 cents a share which missed Wall Street’s estimate of 29 cents. Shares of the company also was short of expectations despite growing 5% to $357 million.