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La-Z- Boy Q1 Profit Soars (LZB)

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Higher margin and strong sales helped the furniture maker, La-Z-Boy (NYSE: LZB) to more than double its fiscal first quarter profit.

The Monroe MI based Company, known for its namesake loungers, has consistently posted quarterly growth since 2009, however, the bottom line felt the pressure in the recent past due to higher promotional expenses and more costs linked to selling (a shift towards incentive based compensation structure).

On Tuesday, the Company’s Chief Executive, Kurt L. Darrow said improving macroeconomic environment in the U.S. coupled by strengthening housing market will benefit its business given that it has already tasted success from its concerted  marketing efforts.

For the fiscal first quarter ended July 27, La-Z-Boy posted a net income of $9.6 million or 18 cents a share compared to a profit of $4.4 million or 8 cents a share, in the same quarter of last year. Revenue rose 5.8% to $318.9 million.

Analysts’ consensus estimate was for earnings of 15 cents a share on revenue of $323 million, according to a data compiled by Thomson Reuters.

Gross margin improved to 32.4% from 29.7%.

The retail division, which includes La-Z Boy Furniture Galleries Stores, posted operating income of $1.9 million compared to a loss of $2 million, in the same quarter of last year. Same-store-sales rose 13%.

Sales at wholesale upholstery division, which is the biggest revenue generator, rose 7% to $254.9 million.

Shares gained 1.13% to $21.48 I afterhours trading. Through the close on Tuesday, the stock has jumped 50% since the beginning of this year.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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