Market Overview

Watch Furniture/Mattress Stocks Following La-Z-Boy's Warning

Watch Furniture/Mattress Stocks Following La-Z-Boy's Warning

La-Z-Boy Incorporated (NYSE: LZB) shares are down 6.5 percent on Friday after the company’s CEO painted a bleak picture of the furniture business at a meeting with analysts on Thursday night.

“In light of the weaker demand throughout the retail home furnishings sector, we anticipate sales for the fiscal 2017 second quarter to be 1.0 percent to 2.5 percent lower than last year’s second quarter sales of $382.9 million,” La-Z-Boy CEO Kurt Darrow told analysts.

Related Link: Furniture Stocks Under Pressure Following Warning From Tempur Sealy

Not only do Darrow’s words have negative implications for La-Z-Boy shareholders, his implication that the lower guidance is a result of a weakening overall furniture market may have a wide-reaching impact on other stocks as well.

Tempur Sealy International Inc (NYSE: TPX) and Ethan Allen Interiors Inc. (NYSE: ETH) are also trading down modestly on Friday. Bassett Furiature Industries Inc. (NASDAQ: BSET), Hooker Furniture Corporation (NASDAQ: HOFT) and Select Comfort Corp. (NASDAQ: SCSS) are all trading mostly flat.

However, if La-Z-Boy’s weak commentary in fact applies to the entire furniture market, traders should look for more downside ahead for these other stocks.

La-Z-Boy expects to release its Q3 earnings report on November 30 after the market close. The stock is now down 6.5 percent in 2016.

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