FIN DeskOriginally published August 21, 2024. This version was rebuilt from La-Z-Boy's first-quarter release, Target's second-quarter release and TJX's second-quarter release for the FIN archive, and the facts are as of that date.
A cluster of earnings reports in late August 2024 gave a read on how home goods were selling across a furniture specialist, a big-box chain and an off-price leader.
The short version
- La-Z-Boy said sales totaled $496 million, an increase of 3% in its fiscal first quarter.
- Target said second quarter comparable sales increased 2.0 percent, with traffic up 3%.
- TJX said HomeGoods comparable store sales rose 2% in the quarter.
La-Z-Boy reports growth
La-Z-Boy reported fiscal first-quarter sales of $496 million, up 3%, with GAAP diluted earnings of $0.61 a share and operating cash flow of $52 million, twice the prior year.
Written sales for its company-owned La-Z-Boy Furniture Galleries rose 4% while written same-store sales fell 3%, meaning new stores were doing the work. The company said near-term market disruptions would likely keep pressuring the year but it was investing in new and acquired stores.
Target's quarter surprises
Target said second quarter comparable sales increased 2.0 percent, at the high end of its expectations. Traffic grew 3%, with all six core merchandising categories delivering traffic growth, and digital comparable sales rose 8.7%.
Traffic gains in every core category suggested shoppers were responding to value and promotions at mass retailers.
Off-price keeps growing
TJX said HomeGoods comparable store sales rose 2% in its second quarter, after a 4% gain a year earlier, while total TJX comparable store sales rose 4%.
Off-price home goods kept growing while furniture specialists reported falling same-store sales, a contrast furniture retailers had to plan around.
The future of furniture retail
Growth was coming from new stores, traffic-driving promotions and off-price value. Same-store furniture demand was still soft, so retailers leaned on expansion and price to grow.
Related on FIN
Sources
- La-Z-Boy Incorporated, First quarter fiscal 2025 results (Aug. 20, 2024)
- Target Corporation, Second quarter 2024 earnings (SEC exhibit 99)
- The TJX Companies, Second quarter fiscal 2025 results (Aug. 21, 2024)
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