Stifel Canada lowered its price target on the shares of Leon's Furniture (LNF.TO) by $3.00 to $27.00 after the company reported first-quarter results that missed expectations.
Analyst Martin Landry, who is maintaining a hold rating on the shares, noted same-store-sales fell by 4.2% Y/Y, the worst decline of the last ten quarters. The drop was mentioned by management in the fourth quarter and should come to no surprise for investors, Landry adds.
A competitor filed for creditor protection in recent weeks which should benefit Leon's, he adds.
Leon's still sees a stretched consumer and challenging macro environment, but is forecasting a gradual improvement throughout the remainder of the year. Landry forecasts lower same-store-sales of -1%, +1% and +3% in the second quarter, third quarter and fourth quarter, respectively.
Price: $24.90, Change: $-0.10, Percent Change: -0.40%