Shares fell more than 5% to $31.83 on Wednesday after-hours, after earlier closing down about 1% to $33.51.
The drop followed the Michigan-based furniture company's forecast of full-year adjusted earnings per share of $2.13 to $2.15 on sales of $1.75 billion, missing analysts' expectations.
That sales projection is an increase of 10% over the prior year, the company said. The adjusted earnings exclude purchase accounting charges of around 12 cents a share and a non-cash pension termination charge of approximately 58 cents.
"Fiscal 2019 was a strong year for La-Z-Boy, said Kurt L. Darrow, chief executive of La-Z-Boy, in a statement. "However, in the fourth quarter sales declined versus the prior-year quarter in our wholesale Upholstery and Casegoods segments, consistent with a slow start to the calendar year across the North American retail home furnishings landscape. Given our fixed costs, the decline in volume translated to a direct impact to operating margins for our wholesale businesses in the fourth quarter."
La-Z-Boy is slated to release its financial results after market's close on June 18 with a conference call the next morning.
The outlook of forecast results for fiscal 2019 came in advance of a meeting with investors at the Stifel Cross Sector Insight Conference slated for June 11.