Shares of iconic reclining armchair maker La-Z-Boy (LZB - Get Report) slipped on Wednesday after the company reported fiscal fourth-quarter earnings that met analysts' forecasts but sales that came up short due to the impact of trade-war-related tariffs.
The maker of reclining chairs and other furniture posted fiscal fourth-quarter adjusted net income of $30.2 million, or 64 cents an adjusted share, vs. $34.4 million, or 72 cents an adjusted share, in the comparable year-earlier quarter. Sales for the quarter were $453.8 million.
The company was expected to report adjusted net income of $30.2 million, or 64 cents a share, on sales of $456.8 million, according to the average estimate of analysts surveyed by FactSet.
In the same period a year ago, the company posted earnings of 66 cents a share on sales of $420 million.
"The first calendar quarter was off to a slow start across the home furnishings industry," CEO Kurt Darrow said in the company's earnings statement. "With the hangover of tariffs and geopolitical uncertainty, it is unclear if these business conditions will continue further into our fiscal 2020 year."
Darrow warned investors during an earnings call in February that tariffs on China goods rising to 25% would translate to about a 6% to 7% increase in pricing, while also saying that it remained to be seen how customers would respond to the price changes.
Shares of La-Z-Boy opened down 1.98% at $29.17 in early trading on the New York Stock Exchange. The stock has fallen some 10% since June 5, when the the Michigan-based company warned it would post adjusted full-year per-share earnings of between $2.13 and $2.15 on sales of $1.75 billion, below analysts' expectations.