La-Z-Boy Posts Mixed Results

Furniture retailer La-Z-Boy (LZB) posted mixed results for its fiscal fourth quarter, with a decline in upholstery sales partly offsetting gains in the company’s retail segment, which was buoyed by contributions from two acquisitions.

The Monroe, Mich.-based company, generated sales of $453.8 million in the three months ended April 27, up from $420 million a year earlier, according to results published after markets closed on Tuesday. This was, nevertheless, below the consensus estimate of analysts polled by Capital IQ for $457.1 million.

Upholstery segment sales contracted to $323.3 million from $327.2 million a year earlier while the casegoods segment generated sales of $26.6 million, down from $30.6 million. Sales within the retail segment rose to $151.9 million from $121.5 million a year earlier, helped by the unit’s acquisition of Arizona-based La-Z-Boy Furniture Galleries stores, and the acquisition of Joybird.

Adjusted earnings per share came in at $0.64, down from $0.72 a year earlier and were in line with the Street’s forecast for $0.64 per share.

“We were pleased with the excellent sales and operating results for our company-owned retail segment. However, sales declined in our wholesale upholstery and casegoods segments, consistent with a slow start to the calendar year across the North American retail home furnishings landscape,” Kurt Darrow, chief executive of La-Z-Boy, said.

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