La-Z-Boy Incorporated (NYSE: LZB) reported stronger-than-expected earnings for its second quarter and raised its quarterly dividend.
For the second quarter of fiscal 2019, consolidated sales increased 11.7% to $439.3 million on solid base business growth as well as consolidation of recent acquisitions. Consolidated GAAP operating margin was 6.5% versus 8.7% in the prior-year quarter.
Consolidated operating income GAAP was $28.5 million versus $34.3 million. Non-GAAP amounts for the second quarter of fiscal 2019 exclude purchase accounting charges totaling $3.9 million, with $3.7 million included in operating income and $0.2 million included in interest expense, or $0.06 per diluted share.
Non-GAAP amounts for the second quarter of fiscal 2018 exclude purchase accounting charges totaling $0.7 million, all included in operating income, or $0.01 per diluted share.
Said CEO Kurt Darrow, "Solid across-the-board sales increases demonstrate the fundamental strength of our various brands, core manufacturing capabilities and retail business, even as we contend with record-high commodity costs and tariff headwinds. In addition, we are pleased with the progress of our recent acquisitions.
"Arizona is already contributing to top-line and Non-GAAP bottom-line results. Additionally, we are excited by the potential of Joybird with its proven ability to reach younger consumers through the e-commerce channel and our plans to leverage existing La-Z-Boy domestic manufacturing facilities to fuel Joybird’s growth and drive cost synergies."
La-Z-Boy shares jumped out of their chairs and gained 85 cents, or 2.9%, to $30.01 Thursday.
