La-Z-Boy Posts In-Line Q2 Profit, But Revenue Misses Views

reported in-line earnings for its fiscal second quarter on Tuesday, but the company's revenue missed analysts' estimates. The company also raised its quarterly dividend from $0.08 per share to $0.10 per share. The Monroe, Michigan-based company reported a quarterly profit of $21 million, or $0.41 per share, versus a year-ago profit of $19.5 million, or $0.37 per share. Its revenue climbed 4.7 percent to $382.9 million. However, analysts were expecting earnings of $0.41 per share on revenue of $388.1 million. Its gross margin expanded to 38.1 percent from 35.5 percent. Its operating income rose 10.6 percent to $33.4 million, while operating margin widened to 8.7 percent from 8.3 percent. Sales from the company's upholstery segment rose 2.9 percent to $305.8 million. Retail sales surged 14.1 percent to $96.5 million. Its same-store written sales surged 3.6 percent in the quarter. Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, "We are optimistic about our ability to drive growth in this economic environment based on the strength of our brand, our marketing initiatives and our product offering. We will continue to make strategic investments in the business as we execute our four-pronged growth strategy, which includes the 4-4-5 store build out initiative, the acquisition of independent La-Z-Boy Furniture Galleries® stores, the growth of sales through our multi-channel distribution network and the expansion of our market share in stationary upholstery. We believe the combination of these initiatives will continue to drive improved performance and results." La-Z-Boy shares fell 0.04 percent to $25.97 in the after-hours trading session.