La-Z-Boy swung to a loss in its fiscal first quarter from an unexpected decline in sales. The furniture maker's sales slid 3% to $475.7 million, missing analyst forecasts for a gain to $501 million. The company also gave a sales forecast for the current quarter below Wall Street's current estimates, and warned that its near-term investments could pressure its margins.

La-Z-Boy posted a loss of $2.29 million, or 6 cents a share, for the quarter ended July 25, compared with a profit of $18.2 million, or 44 cents a share, in the same period a year earlier. The results reflect weaker consumer demand and higher promotional activity across the retail sector.

Management indicated that strategic investments in manufacturing and digital capabilities will continue to weigh on near-term profitability. The outlook suggests continued headwinds for the furniture industry as discretionary spending remains constrained.