La-Z-Boy Incorporated (NYSE:LZB) reported better-than-expected earnings for its second quarter, while sales missed estimates.
The furniture giant out of Monroe, Michigan revealed Tuesday consolidated sales for the first quarter increased 7.5% to $413.6 million.
Consolidated operating margin increased 5.7% compared to the expected 6%, on a GAAP-basis; 6.3%, compared to 6.1% expected on a non-GAAP basis.
Net income attributable to La-Z-Boy Incorporated per diluted share proved to be 38 cents compared to 39 cents projected, on a GAAP basis; 42 cents compared to the expected 39 cents.
For the first quarter, the company generated $19.3 million in cash from operating activities, and ended the quarter with $113.6 million in cash, cash equivalents, and restricted cash, and $32.9 million in investments to enhance returns on cash.
During the period, the company invested $12.3 million in the business through capital expenditures, paid $6.1 million in dividends, and spent $12.3 million purchasing 0.4 million shares of stock in the open market under its existing authorized share purchase program, leaving 5.5 million shares of purchase availability in the program.
CEO Kurt Darrow said, "Our results for the quarter demonstrate the strength of the La-Z-Boy brand within today’s challenging home furnishings environment, as well as the power of our world-class supply chain. Our company-owned Retail segment delivered strong sales momentum and also nearly doubled operating profit."
Shares hiked $2.40, or 7.9%, to $32.95
