La-Z-Boy Posts Higher Q1 Profit

reported better-than-expected earnings for its fiscal first quarter on Tuesday. The Monroe, Michigan-based company posted net income of $13.7 million, or $0.27 per share, compared to $13.1 million, or $0.25 per share, in the year-ago quarter. Its sales rose 4.4 percent year-over-year to $341.4 million. However, analysts were expecting earnings of $0.21 per share on revenue of $341.15 million. The average estimate among 9 Estimize users was for earnings of $0.22 per share and revenue of $349.05 million. The company's sales in its upholstery segment rose 3.7 percent to $272.7 million, while sales in its retail segment surged 18.9 percent to $86.7 million in the quarter. Same-store written sales for La-Z-Boy Furniture Galleries store network gained 5.3 percent in the recent quarter. Consolidated operating income rose 21 percent to $20.0 million in the quarter, while operating margin expanded to 5.8 percent from 5.0 percent. The company ended the quarter with $87.5 million in cash and cash equivalents, and $9.6 million in restricted cash. Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, "We are optimistic that our multi-faceted strategy to drive growth and profitability throughout fiscal 2016 will deliver results in this economic environment. Our investments in the business are strategic and are strengthening the relevance of our brand, our distribution system and operating platform. As we move through the year, we will continue to fine tune our initiatives as conditions and results warrant. We believe the combination of our growth and marketing initiatives coupled with our efficient operating platform will allow us to gain market share and drive improved performance." La-Z-Boy shares fell 1.03 percent to $26.90 in the after-hours trading session.