Leggett & Platt Q2 sales fall 6% on weak demand
LEG•Outlook
- Company withdrew 2026 guidance due to pending acquisition by Somnigroup
- Leggett & Platt expects ongoing macroeconomic headwinds to temper consumer demand for the rest of 2026
Result drivers
- Weak demand - Co said volume declined due to continued weak demand across most end markets, retailer merchandising changes in Adjustable Bed, and the decision to exit a financially challenged customer in U.S. Spring
- Non-recurring benefits - Adjusted earnings benefited from favorable items, including metal margin expansion and restructuring, most of which are not expected to repeat in future quarters
- Raw material pricing - Raw material-related selling price increases and currency benefit added to sales, partially offsetting volume declines
Analyst coverage
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the home furnishings peer group is "hold"
- Wall Street's median 12-month price target for Leggett & Platt, Incorporated is $11.50, about 12.2% above its August 5 closing price of $10.25
- The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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