La-Z-Boy Q2 Profit Rises

(RTTNews) - Furniture maker La-Z-Boy Inc. (LZB), Tuesday reported an increase in profit for the second quarter, helped by growth in sales and margins, with earnings coming in line with Wall Street estimates. La-Z-Boy shares rose about 5 percent in after-hours trade.

Monroe, Michigan-based La-Z-Boy's second-quarter profit rose to $20.95 million or $0.41 per share from $19.53 million or $0.37 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude one-time items.

La-Z-Boy's sales for the quarter grew 4.7 percent to $382.89 million from $365.60 million a year ago. Analysts had a consensus revenue estimate of $388.11 million for the quarter.

Within the company's wholesale segment, upholstery sales climbed 2.9 percent to $305.8 million, while casegoods dropped 2.3 percent to $28.2 million. Sales from retail segment increased 14.1 percent to $96.5 million.

Chief Executive Kurt Darrow said, "For the quarter, we improved our overall performance and achieved a consolidated operating margin of 8.7%, driven primarily by efficiencies within our manufacturing facilities and supply chain, as well as strong retail execution."

Operating margin for the quarter improved to 8.7 percent from 8.3 percent last year.

LZB closed Tuesday's trading at $25.97, down $0.11 or 0.42%, on the NYSE. The stock further gained $1.27 or 4.89% in the after-hours trade.