La-Z-Boy Incorporated (NYSE:LZB)
La-Z-Boy, one name amongst many in the home furnishings and furniture industry announced their quarterly earnings on June 20, 2017 after the market closed. The company, which competes with names such as Bassett Furniture Industries (NASDAQ:BSET), Stanley Furniture Company Inc (NASDAQ:STLY), and RH (NYSE:RH) posted stellar earnings which surpassed Wall Street’s expectations.
Shares, which had been trading down during the regular trading day and wound up closing down 3.85% came back to life in the after hours when the company released the quarterly earnings numbers.
Wall street responded immediately, with traders and investors scrambling to buy the shares in the after hours session. This drove prices up $3.29 or 12.58 % closing at $29.49 when trading ended at 8pm EDT. The company plans its conference call on Wednesday morning, June 21st at 8:30 a.m. Eastern Daylight Time.
The Numbers And Developments
- Earnings came in at $.57 per share, this beat estimates by $.11.
- Revenues were down a bit at $412 million versus $417 million in the year prior. However, analysts had expected only $401 million.
- The dividend stays the same at $0.11.
- The company announced an increase in the share repurchase program of an additional 6 Million shares.
- La-Z-Boy plans to increase marketing spending- something retailers are finding they need to do as home sales seem to be rebounding in certain geographical areas of the U.S.. They also plan to improve their advertising allotments in terms of specific targeting dynamics.
Fun Facts About La-Z-Boy
- 1927: Cousins Edward Knabusch and Edwin Shoemaker quit their jobs to design furniture.
- 1940s: The company stops producing as many recliners, instead renting out the factory space to make tank seats and crash pads to help support the war effort.
- 1960s: La-A-Boy releases the “Reclina-Rocker” which increased sales from about $1 million annually to about $53 million annually by 1971. Bing Crosby signed on as of the company’s first spokesmen.
- 1970s: Joe Namath, Bo Schembechler, Don Shula, Alex Karras and other football stars sign on as spokesmen. The term “armchair quarterback” is coined.
- 1987: Company went public, being listed on the New York Stock Exchange for the first time.
- 1996 Name is changed from La-Z-Boy Chair Company to La-Z-Boy Incorporated.
- 2000s: Chairs now are capable of rocking, swiveling, gliding and lifting. Some models include massage and heat functions, while others offer small cooling compartments, Internet hook-up and built-in phones.
The Price Chart
The chart shows the daily price history going back to the beginning of 2007. The green oval area is where prices will likely open for trading on Wednesday morning. Notice that the gap should over-power the red down-trend line shown in the red.
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.