La-Z-Boy Posts In-line Q4 Earnings, But Sales Miss Estimates

reported in-line earnings for its fiscal fourth quarter, but the company's sales missed analysts' estimates. The Monroe, Michigan-based company reported quarterly income from continuing operations of $19.8 million, or $0.38 per share, versus a year-ago profit of $14.6 million, or $0.27 per share. Its adjusted income from continuing operations surged to $0.38 per share from $0.33 per share. Its revenue rose 6.2 percent year-over-year to $374.9 million from $353 million. However, analysts were expecting a profit of $0.38 per share on revenue of $379.13 million. The average estimate among 4 Estimize users was for earnings of $0.37 per share and revenue of $374.31 million. The company's sales in upholstery segment climbed 6.9 percent to $305.3 million, while sales in the casegoods segment dropped 4.9 percent year-over-year to $25.9 million in the latest quarter. For the fourth quarter, sales in the retail segment climbed 10 percent to $86.7 million. Its operating income for the fourth quarter climbed 31 percent to $29.6 million, while operating margin widened to 7.9 percent from 6.4 percent. La-Z-Boy generated cash from operations of $31.7 million during the fourth quarter. The company ended the year with $98.3 million in cash and cash equivalents. Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, "We are pleased with our results for the full fiscal 2015 year. We increased sales across all three operating segments, and increased our consolidated operating profit, earnings per share and dividend. Our La-Z-Boy Furniture Galleries® network posted a 3.0% increase in written same-store sales and the company as a whole generated strong cash flow, allowing us to return $66.4 million to shareholders through dividends and share purchases, an increase of 56% from fiscal 2014." "As we move into the summer months, however, the furniture industry typically experiences weaker demand, and our plants shut down for one week of vacation and maintenance during the first quarter, which ends in July. Accordingly, the first quarter is usually our weakest in terms of sales and earnings. Additionally, as our fiscal year ends the last Saturday of April each year, fiscal 2016 is a 53-week year, with the extra week occurring in the fourth quarter," Darrow added. La-Z-Boy shares fell 3.76 percent to $26.14 in the after-hours trading session.