By Connor Hart
La-Z-Boy posted higher-than-expected revenue and profit in its fiscal second quarter, boosted by a strong Labor Day holiday, though the company warned its industry remains under pressure.
The Monroe, Mich., furniture maker on Tuesday reported net income of $30 million, or 71 cents a share, for its quarter ended Oct. 26, compared with $27.2 million, or 63 cents a share, in last year's comparable quarter.
Adjusted per-share earnings were 71 cents, beating the 64 cents that analysts were looking for, according to FactSet.
Revenue rose 2% to $521 million. The company had most recently guided for second-quarter revenue between $495 million and $515 million, while analysts surveyed by FactSet had been looking for $506 million.
Chief Financial Officer Bob Lucian said the company beat expectations thanks to a strong Labor Day holiday and improved business operations. "Furniture and home furnishings related spending continues to be soft, but we are outperforming the industry in a sustainable manner," he said.
Shares rose 3.4%, to $43.75, in after-hours trading.
Industry sales trends, however, are expected to remain under pressure, Lucian added.
For its fiscal third quarter, La-Z Boy guided for revenue between $505 million and $525 million, the midpoint of which is slightly higher than the $512.3 million that analysts polled by FactSet forecast.
Also on Tuesday, the company's board increased its dividend 10% to 22 cents. The new payout, equal to 88 cents a year, represents an annual yield of about 2.1% based on the stock's closing price of $42.31. The dividend is set to be paid Dec. 16, to shareholders of record as of Dec. 5.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 19, 2024 16:58 ET (21:58 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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