Market Overview

La-Z-Boy Sinks After Hours; FQ1 Operating Margins Narrower

Related LZB
Benzinga's Top Downgrades
Keep an Eye on These 10 Stocks for November 18, 2015
Investors bet against stocks tied to home spending (Seeking Alpha)

La-Z-Boy (NYSE: LZB) trended sharply down in the extended session Tuesday after the company missed fiscal first-quarter earnings expectations by a $0.01 a share.

La-Z-Boy reported lower operating margins for both its wholesale and retail segments, while retail same-store sales grew one percent.

Retail sales grew 10 percent to $72.9 million while operating margin fell to 0.4 percent from 2.9 percent a year earlier.

In its wholesale segment, upholstery revenue increased 6.8 percent to $262.9 million and operating margin narrowed to 8.4 percent compared with 9.1 percent in 2013. Case goods sales were $28.9 million, up 16.6 percent and the operating margin widened to 5.3 percent versus 1.8 percent in last year's first quarter.

La-Z-Boy's board authorized an additional five million shares under its existing share buyback plan.

First-quarter net income from continued operations grew to $10.6 million, or $0.20 a share, from $9.6 million or $0.18 a share a year earlier.

Revenue grew 11 percent to $327 million, from $305.5 million in 2013.

Wall Street expected $0.21 a share, on revenue of $321.3 million.

In after-hours trading, La-A-Boy fell 4.8 percent to $22.10 a share.

Posted-In: Earnings News Guidance After-Hours Center


Related Articles (LZB)

Get Benzinga's Newsletters