La-Z-Boy Beats in 2Q, Increases Dividend

(AP) -

NEWS: La-Z-Boy Inc. reported late Tuesday that its fiscal second-quarter net income more than doubled on improved sales. The quarter’s results far exceeded analyst expectations and the furniture company increased its dividend, which sent its shares up in after-hours trading.

DETAILS: The company said that traffic in its stores was flat but the amount spent by shoppers increased. Revenue from its stores open at least a year increased 9.8 percent for the quarter that ended Oct. 26. The metric is considered a key indicator of financial performance, as it strips away the impact of recently opened or closed stores.

NUMBERS: La-Z-Boy’s net income rose to $16.7 million, or 31 cents per share, from $6.6 million, or 12 cents per share, last year. Revenue increased 14 percent to $366.4 million.

Analysts polled by FactSet were anticipating earnings of 24 cents per share on revenue of $349.4 million.

FUTURE: La-Z-Boy CEO Kurt Darrow said that the company remains optimistic about its business model and future opportunities, given the strength of its brand and retail distribution outlet. He noted there is uncertainty in Washington with respect to the debt ceiling and it’s unclear how that may impact the consumer. But he said the company is moving forward with growth plans.

The company also increased its quarterly dividend to shareholders by 50 percent. The new dividend of 6 cents per share will be paid on Dec. 10 to shareholders of record as of Nov. 29.

STOCK: Shares of the Monroe, Mich.-company rose $1.53, more than 6 percent, to $25.95 in extended trading following the release of the earnings report.