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

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.