Lay-Z-Boy Tanks 15% Following Revenue Miss

La-Z-Boy Incorporated LZB released its Q1 results after market close on Tuesday. Earnings per share came in above Wall Street consensus expectations, however, shares fell due to the company's miss on sales estimates.

La-Z-Boy reported EPS of $0.30 and revenues of $340.8 million. Analyst consensus had an EPS estimate of $0.29 and revenues of $358.7 million.

"The main performance drivers were improvements in procurement, plant efficiency and productivity, and we also benefited from a slight shift in product mix. In our casegoods segment, the operating margin for the quarter was 8.6%, versus 7.2% in last year's comparable quarter, reflecting both improved volume, particularly as we gain traction with our newer more transitional collections, and operating efficiencies," stated CEO Kurt Darrow.

"As we move into the early fall, we are optimistic about the prospects for upholstery and casegoods collections introduced at the April Furniture Market in High Point, NC. In particular, the iClea fabric collection introduced for our La-Z-Boy product line and the AD Modern group from American Drew were received enthusiastically by our dealer base. These products will arrive on retail floors in September," said Darrow.

At time of writing, La-Z-Boy traded at $26.50 in Tuesday's after-hours session, down 15 percent.