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    Assessing La‑Z‑Boy (LZB) Valuation After Earnings Beat And Tariff And Demand Concerns

    Simply Wall St·02/26/2026 15:30:22
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    La-Z-Boy (LZB) is back in focus after quarterly results that topped Wall Street expectations on revenue and non GAAP profit, yet drew a negative stock reaction as investors weighed demand uncertainty and fresh tariff risks.

    See our latest analysis for La-Z-Boy.

    At a share price of US$35.92, La-Z-Boy has seen short term pressure, with a 30 day share price return of 6.26% decline and a 1 year total shareholder return of 19.43% decline, even though the 3 year total shareholder return sits at 19.37%, as investors react to tariff headlines, softer earnings and insider selling against past gains.

    If this mix of earnings surprises and policy shocks has you rethinking where you look for opportunities, it could be a good moment to broaden your search with our 21 top founder-led companies.

    With La-Z-Boy trading at US$35.92 and screens suggesting a material discount to both analyst targets and intrinsic value estimates, you have to ask: is this just justified caution around tariffs and demand, or is the market underestimating future growth?

    Most Popular Narrative: 19.3% Undervalued

    At $35.92, the most followed narrative for La-Z-Boy points to a higher fair value of $44.50, built on a detailed long term earnings and margin outlook.

    The multiyear transformation of La-Z-Boy's distribution network, reducing distribution centers from 15 to 3 centralized hubs, is expected to yield 50-75 basis points of wholesale margin improvement by Year 4, enhancing long-term operating efficiency and net margins as supply chain costs decline.

    Read the complete narrative.

    Curious how a furniture maker gets to that higher fair value? The narrative leans on steady revenue gains, thicker margins and a future earnings multiple that assumes investors keep paying up for that progress. Want to see exactly which assumptions carry the most weight in that story?

    Result: Fair Value of $44.50 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this story can change quickly if industry wide store traffic stays weak, or if prolonged discounting to clear inventory keeps pressure on margins and cash generation.

    Find out about the key risks to this La-Z-Boy narrative.

    Another View: Earnings Multiple Sends a Different Signal

    While the SWS model points to a fair value of $49.51, the current P/E of 17.6x sits above the US Consumer Durables industry at 13.1x and the fair ratio of 15.7x. In plain terms, the market is already paying a premium, so is the discount to fair value as clear cut as it looks?

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:LZB P/E Ratio as at Feb 2026
    NYSE:LZB P/E Ratio as at Feb 2026

    Next Steps

    If this mix of mixed signals has you on the fence, take a closer look at the underlying data. Move quickly to form your own stance, using our 2 key rewards and 2 important warning signs to weigh both sides for yourself.

    Ready for more investment ideas?

    If this story has you reassessing where you focus your time, do not stop here. Use our stock screener to line up your next set of ideas.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.