Corrects headline, 1st para to say profit fell; Q2 EPS, analysts EPS estimate.
Home furniture manufacturer La-Z-Boy Inc. (LZB), Wednesday reported a decline in second-quarter profit, on a nearly 5 percent growth in sales, partly offset by lower margins. Nevertheless, the company's earnings and sales for the quarter fell short of Wall Street estimates.
Moving forward, the company said business conditions continue to be tough, but exuded confidence for growth prospects, and also announced a reinstatement of its dividend.
La-Z-Boy, which makes namesake living-room recliners, said same-store written sales for Furniture Galleries stores rose 13.3 percent during the quarter.
Sales at Wholesale Upholstery segment rose 7.5 percent, while case goods business fell 4 percent. The upholstery segment's operating margin contracted to 8.4 percent from 8.7 percent.
At retail segment, delivered sales increased 16.1 percent.
Overall, the Monroe, Michigan-based company reported second-quarter sales of $322 million, up from $307.7 million last year. Analysts had a consensus revenue estimate of $325.38 million for the quarter.
La-Z-Boy reported quarterly net income of $6.6 million or $0.12 per share, down from $8 million or $0.15 per share last year.
On average, five analysts polled by Thomson Reuters expected earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the reporting quarter include restructuring charges of $0.03 per share.
The company indicated reinstating its dividend and declared a quarterly cash dividend of $0.04 per share on its common stock, payable December 20 to shareholders as of December 10.
LZB closed Wednesday at $16.60, down 1.40%, on the NYSE.
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