La-Z-Boy (LZB) advanced on Wednesday after the furniture retailer reported profit surpassed market expectations in its fiscal first quarter, buoyed by higher sales.
Shares gained 1.7% to $27.65 at 2:02 p.m. in New York, expanding a rally over the past twelve months to 19%.
Net income rose to $13.7mln, or $0.27 per share, in the three months ended July 25, from $13mln, or $0.25 per share, in the year-earlier period, the Monroe, Michigan-based company said in a statement late Tuesday.
First-quarter revenue rose 4.4% to $341.4mln from $327mln year-over-year.
Analysts polled by Capital IQ projected earnings of $0.21 per share on revenues of $341.2mln.
Same-store written sales for the La-Z-Boy Furniture Galleries store network increased 5.3% in the quarter.
The company known for its namesake recliners and its “made in America” pledge, last year stopped domestic production of wood furniture, exited the hospitality business and started importing wood furniture. Unable to find a buyer for its youth-furniture unit, La-Z-Boy instead liquidated the unit’s assets.
In the meantime, the company has been expanding its store footprint in the U.S. as part of a push to open 400 stores, averaging $4 million in sales, over five years—what it calls its 4-4-5 strategy.
"We are optimistic that our multi-faceted strategy to drive growth and profitability throughout fiscal 2016 will deliver results in this economic environment,” chief executive officer Kurt Darrow said in the statement.