La-Z-Boy Incorporated (NYSE:LZB) reported stronger-than-expected earnings for its third quarter.
Consolidated sales increased 13.0% to $467.6 million. Delivered same-store sales for the company-owned retail segment increased 6.7%. Consolidated operating income registered at $40.8 million versus $33.1 million (GAAP) and $42.2 million versus $32.6 million (Non-GAAP)
Net income attributable to La-Z-Boy Incorporated per share amounted to 61 cents, versus 25 cents in the prior-year quarter (GAAP), and 63 cents, versus $0.25 per diluted share in the prior-year quarter (Non-GAAP).
CEO Kurt Darrow said, "La-Z-Boy delivered solid results for the quarter, with sales and operating margin increases posted across the business and strong operating cash generation. We are particularly pleased with the performance of the company-owned Retail segment which doubled its operating income in the quarter versus last year.
"Within the stores, our retail team is professionally executing our strategies while consumers are responding positively to our product and service offering."
During the fiscal 2019 second quarter the company closed on the acquisition of Joybird and 10 La-Z-Boy Furniture Galleries® stores – nine in Arizona and one in North Dartmouth, Massachusetts.
Joybird and the acquired La-Z-Boy Furniture Galleries® stores in Arizona and North Dartmouth are key strategic acquisitions for the company and are intended to drive long-term growth and profitability.
On a Non-GAAP basis, these combined entities are expected to be slightly accretive to profit by the end of fiscal 2019. The company expects purchase accounting charges to be approximately $0.11 to $0.12 per diluted share for the full fiscal 2019 year.
Shares gained $2.15, or 6.7%, to $34.33
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