Shares in La-Z-Boy rose nearly 5% on Friday after President Donald Trump announced a 30% tariff on imported upholstered furniture, a move expected to pressure many competitors but give the Michigan-based company an advantage.
© Ken Wolter | Dreamstime
Unlike rivals such as Williams-Sonoma and RH, which saw their stocks decline, La-Z-Boy manufactures about 90% of its upholstered furniture in the United States. Its remaining production largely comes from Mexico under the US-Mexico-Canada Agreement, leaving the brand less exposed to import duties.
Chief executive Melinda Whittington recently told investors that the company's North American manufacturing footprint meant it was "not as impacted by tariffs." Chief financial officer Taylor Luebke added that La-Z-Boy had navigated trade headwinds through strategic inventory management, sourcing shifts and limited pricing actions.
Analysts warn the wider industry could struggle, as U.S. furniture manufacturing capacity is limited, making reshoring difficult. With most furniture purchases discretionary, higher prices could also prompt consumers to delay spending.
For La-Z-Boy, however, tariffs may offer an opportunity to gain market share if competitors are forced to lift prices.
Source: www.marketwatch.com
