Summary: OVERPRICED
Score: 9/20
MOS: -242%
Share Price: $30
Sticker Price: $9
Is La-Z-Boy a good buy?
La-Z-Boy is an American furniture manufacturer founded in 1927 and based in Monroe, MI that makes home furniture, including upholstered recliners, sofas, stationary chairs, lift chairs and sleeper sofas. The company employs more than 11,000 people and has 560 stores.
La-Z-Boy has felt the pain from COVID-19. Their Q2 revenues were down 22% due to store closures. Although more people were at home, it doesn’t mean they can actually purchase the furniture to put in their home.
I did some browsing around their website and you can indeed buy the furniture online but the shipping cost on a $1,000 chair is about $129. Wow! That’s expensive. It makes sense why sales were down in Q2 as customers would rather pick up the furniture to save the money.
At this time, La-Z-Boy is too much of a risk. The score of 9/20 shows the financials aren’t strong enough and the share price of $30 vs the sticker price of $9 shows this stock could drop further.
—
The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.