La-Z-Boy Incorporated (NYSE:LZB) reported weaker-than-expected results for its second quarter.
The Monroe, Michigan-based company reported consolidated sales for the second quarter increased 1.8% to $447.2 million Consolidated operating margin GAAP proved 6.6% versus 6.5%. Non-GAAP, 7.5% versus 7.3%
Net income proved to be, GAAP, 48 cents, compared ot 42 cents in the similar quarter last year.
Sales in the Retail segment increased 6.2% to $148.4 million in the second quarter of fiscal 2020. GAAP operating margin for the Retail segment improved to 5.7% from 4.7% in last year’s second quarter.
Non-GAAP operating margin increased to 5.8% in the current-year quarter from 5.4% in last year’s second quarter, and excluded purchase accounting charges in each period related to store acquisitions.
Operating margin improvement was driven primarily by higher volume. On the core base of 153 company-owned stores in last year’s second quarter, delivered same-store sales increased 5.0%, reflecting improved traffic trends and continued strong execution at the store level.
According to CEO Kurt Darrow, "As evidenced by solid written same-store sales across the La-Z-Boy Furniture Galleries network and the sixth consecutive quarter of delivered same-store sales growth for our company-owned Retail segment, the La-Z-Boy brand continues to exhibit strength and relevance in today's challenging home furnishings environment."
On Wednesday, the Board of Directors declared a regular quarterly dividend to shareholders of $0.14 per share, an increase of 8% over the prior quarter. The dividend will be paid on December 13, to shareholders of record as of December 2.
Shares fell to earth $4.53, or 12.5%, to $31.65
