La-Z-Boy is leaning on the strength of its retail business after first-quarter sales slipped 3 per cent to $476 million, with CEO Melinda Whittington pointing to growth in company-owned stores as a key driver.

Sales at company-owned La-Z-Boy stores rose 10 per cent during the quarter, while comparable store sales increased 3 per cent from a year earlier.

“I’m particularly pleased to highlight growth across all three strategic pillars of same-store sales, new store expansion, and acquisitions of independent dealers, all while expanding operating margin,” Whittington said.

During the quarter, the furniture retailer completed the divestiture of its wholesale casegoods business and said it will continue investing in its multi-year distribution and home delivery transformation.

Looking ahead, SVP and CFO Taylor Luebke said second-quarter sales are expected to range between $500 million and $520 million.

“We expect an adjusted operating margin of around 5 per cent, reflecting near-term investments and friction costs as we invest in new stores, advertising, strategic pricing and digital transformation, while optimizing our manufacturing footprint and advancing our distribution and home delivery transformation,” Luebke added.

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