Consumer Discretionary
Better-than-expected 4Q24 results in a challenging operating environment are encouraging and reaffirm Sidoti’s bullish view on the stock. After severe weather-related disruptions in Jan, demand rebounded and LZB benefitted from solid in-store execution, store base growth and record-high conversion rates and gains in average ticket. With initial 1Q25 guidance above forecasts, Sidoti raises their FY25 and FY26 EPS estimates to $3.22 and $3.72, respectively (from $3.08 and $3.58 previously). FCF per share will total $2.64 in FY25 and $3.45 in FY26; the company will use most of the FCF for dividends and share buybacks. TP increased to $45.
Edition: 189
- 28 June, 2024