La-Z-Boy ( NYSE: LZB ) stock jumped about by a double-digit percentage on Wednesday after topping earnings expectations for its fiscal third quarter.
The Michigan-based furniture manufacturer notched $0.91 in earnings per share on a non-GAAP basis, beating estimates by $0.25. Meanwhile, a modest rise in revenue surprised analysts that had expected a decline in the tens of millions year over year. Retail sales rose 27% from the prior year, offsetting a modest decline in wholesale revenue.
“We again delivered excellent results driven by productivity gains throughout our supply chain and superb performance in our company-owned Retail segment,” CEO Melinda D. Whittington commented. “During the quarter, we worked down the majority of our excess backlog, getting close to normal lead times, and continued to invest in marketing to increase awareness and consideration of the La-Z-Boy brand.”
Inventories remained essentially flat year over year CFO Bob Lucian added that the company’s backlog has returned to pre-pandemic norms.
For the fourth quarter, the company expects delivered sales between $525M to $545M, Analysts had projected $526.8M in revenue for the quarter. The company expects operating margin to range from 7% to 9%
“As we move through this uncertain economic environment, we will continue to employ agility, a consumer-first focus, and our strong financial position to make smart investments to drive capability and brand reach,” Whittington concluded.
Shares of La-Z-Boy ( LZB ) roared 16.18% higher in Wednesday’s trading.
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La-Z-Boy stock surges on earnings beat, strong sales guide