NEW YORK (TheStreet) -- La-Z-Boy (LZB) stock is falling Wednesday after the furniture maker experienced its first same-store sales decline in more than 3 years and as the company guided for a weak current quarter. By midmorning, shares had tumbled 9.3% to $22.54.
In its fourth quarter ended April, the company reported a 0.9% drop in same-store sales at its furniture galleries, a result of harsh winter conditions particularly over February. A quarter earlier, same-store sales jumped 11.2%.
CEO Kurt L. Darrow said weakness will continue in the first quarter. In a statement, he explained, "The furniture industry typically experiences weaker demand during the summer months and, as a result, our plants shut down for one week of vacation and maintenance during the first quarter, which ends in July. Accordingly, the first quarter is usually our weakest in terms of sales and earnings."
Separately, TheStreet Ratings team rates LA-Z-BOY INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LA-Z-BOY INC (LZB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."