La-Z-Boy (LZB) Tops Q2 EPS by 4c

November 30, 2016 4:17 PM EST

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La-Z-Boy (NYSE: LZB) reported Q2 EPS of $0.42, $0.04 better than the analyst estimate of $0.38. Revenue for the quarter came in at $376.6 million versus the consensus estimate of $376.29 million.

Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy Incorporated, said, “While the consumer environment experienced weaker demand during the summer and early fall, macroeconomic indicators that generally bode well for discretionary spending and home furnishings remain positive. With that as a backdrop, our advertising, merchandising and promotional plans remain intact as we strategically position the company to capitalize on what is typically a strong holiday selling season. Also, we are making investments in our business to drive long-term growth and profitability. Earlier this month, we bought nine La-Z-Boy Furniture Galleries® stores from an independent dealer as part of our ongoing plan to grow our integrated retail platform. And, as we look for additional growth opportunities, we signed an agreement to acquire the license for the La-Z-Boy brand in the U.K. and Ireland and plan to close on the transaction during the third quarter. From an operating perspective, on slightly down sales for the quarter, our margin improved to 8.8%. As we enter the back half of fiscal 2017, the company is well positioned in the marketplace with our brand strength, product offering, speed-to-market advantage and vast distribution network.”

Business Outlook

Darrow concluded, “We believe the growth strategies we are employing will carry La-Z-Boy into the future and deliver improved performance. In addition to capitalizing on the strength of our brand and efficient operating structure, we are confident our vast distribution structure, which includes the La-Z-Boy Furniture Galleries® network of stores, Comfort Studios®, and a multitude of additional dealers, gives us a unique competitive advantage in the marketplace. We will continue to invest in our business across a number of areas to drive growth and profitability. At the same time, we are identifying growth strategies for the future. While the consumer environment for the past six months has been somewhat choppy, our team is well versed in adapting our marketing plans and merchandising strategies to ensure we resonate with the consumer, and I have every confidence we will navigate our way through this period.”

For earnings history and earnings-related data on La-Z-Boy (LZB) click here.



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