La-Z-Boy (LZB) Misses Q4 EPS by 3c; Comps Rise 2.2%

La-Z-Boy (NYSE: LZB) reported Q4 EPS from cont ops of $0.45, $0.03 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $417.1 million versus the consensus estimate of $416.48 million.

Same-store written sales for the La-Z-Boy Furniture Galleries® network increased 2.2% on a comparable basis.

Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy, said, "We delivered exceptional performance in fiscal 2016 and continued on a five-year path of sales and earnings increases. Our results demonstrate the effectiveness of our strategic growth initiatives in today's retail environment and the efficiencies throughout our manufacturing platform. We had an excellent quarter and year, which would have been even stronger without the previously announced $0.07 per share charge for the pending legal matter. We recorded increases in sales, earnings per share, and consolidated operating margin, reflecting improved operating performance across all three business segments. We also returned $62.2 million to shareholders through dividends and share purchases, all while reinvesting in our business – including the acquisition of 11 La-Z-Boy Furniture Galleries® stores – to drive long-term profitable growth. Our balance sheet remains strong and we are well positioned for ongoing success as we enter fiscal 2017."

Business Outlook

Darrow concluded, "We remain optimistic about our business. We have a wide selection of product, the ability to offer consumers mass customization with speed of delivery, and a vast distribution network that presents us with numerous opportunities. Our brand remains the strongest in the industry, and our effective marketing platform and related initiatives are providing us with solid positioning in the marketplace. Moving forward, we believe our growth initiatives will drive continued increases in sales and earnings while we invest in the business to provide long-term sustainable growth and earnings momentum."

Darrow added, "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 in July, during the first quarter. Accordingly, the first quarter is usually our weakest in sales and earnings. In addition, fiscal 2017, unlike fiscal 2016, will be a 52-week year."

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

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