La-Z-Boy Incorporated (NYSE:LZB) shares crashed 23.55% in after-hours trading on Tuesday, falling to $29.90 from $39.11 after the furniture retailer reported disappointing first-quarter results that missed analyst expectations amid mounting operational pressures.

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Earnings Miss Drives Sharp Selloff

The Monroe, Michigan-based company reported Generally Accepted Accounting Principles diluted earnings per share of $0.44 for the quarter ending on July 26, falling short of market expectations. Adjusted earnings per share (EPS) came in at $0.47, down 24% from $0.62 in the prior year period.

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Total sales also declined 1% to $492 million versus $495.5 million last year, reflecting growth in retail and wholesale segments offset by a 20% decline in Joybird delivered sales to $28 million.

Operating Margins Compress Under Pressure

GAAP operating margin of the manufacturer and retailer of residential furniture contracted 200 basis points to …

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