La-Z-Boy Incorporated (NYSE:LZB)
La-Z-Boy Incorporated (LZB), a global residential furniture company yesterday reported their fiscal first quarter 2017 financial results. La-Z-Boy reported second quarter earnings of $0.28 per share which fell short of analyst expectations of $0.29 per share. La-Z-Boy reported second quarter revenues of $340.8 million which fell short of analyst expectations of $358.8 million.
La-Z-Boy Incorporated CEO’s Comments
Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, “Our manufacturing operations are running efficiently and when combined with other supply chain initiatives, we drove improved profitability for the fiscal 2017 first quarter, increasing consolidated operating margin to 6.4%. While we experienced flat sales for the quarter due to weaker demand at wholesale and inconsistent traffic throughout the La-Z-Boy Furniture Galleries® store system, we are in an excellent service position for both our dealers and the consumer as we approach the traditionally stronger fall selling season.” PR Newswire
LZB Technical Analysis
LZB opened trading yesterday at $30.33 which was up from the previous days trading of $30.12. LZB closed trading yesterday at $31.20 and crashed down after market to $26.55, equivalent to a 15% decrease from the closing price. Taking a look at the daily chart we can see the last time LZB traded below these levels we have to go back to June 21st when it traded at highs of $25.68. Taking a closer look at the daily chart we can see that LZB had been in an upward trend dating back to May 18th when it traded at $24.69. LZB has a float of 47.7 million shares and traded 3.12 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see LZB open trading on Wednesday below $28.10 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. The company also produces reclining chairs; and manufactures and distributes residential furniture in the United States. It operates through Upholstery, Casegoods, and Retail segments. The Upholstery segment manufactures or imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of Comfort Studios and England custom comfort center locations, dealers, and other independent retailers.
The Casegoods segment manufactures, imports, markets, and distributes casegoods furniture, including bedroom sets, dining room sets, entertainment centers and occasional pieces, and upholstered furniture. This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brand names. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. La-Z-Boy Incorporated sells its products through a network of 338 La-Z-Boy Furniture Galleries stores and 559 Comfort Studio locations, as well as in-store programs for its Kincaid and England operating units. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.