La-Z-Boy Jumps as Consumers Keep Coming Into Its Physical Stores
(Bloomberg) -- Furniture maker La-Z-Boy Inc.’s shares jumped after reporting sales that beat the highest analyst estimates in the latest quarter.
- Same-store sales -- a key gauge of retailer momentum -- increased 6.7 percent at stores owned by the company. Revenue, meanwhile, was $467.6 million, above the average estimate from analysts.
- There was no mention of commodity costs or tariff headwinds in this latest quarterly report, even though it was a key concern for the furniture company in the previous quarter. Still, analysts may be listening for more details during Wednesday’s premarket conference call.
- Physical stores in the retail industry may be having a tough time in general, but many consumers still like to sit on furniture and see it in person, which is good news for La-Z-Boy. Chief Executive Officer Kurt Darrow said the company was “particularly pleased’’ with its retail arm.
- Known for its classic recliners, La-Z-Boy has been working to remain relevant with a newer generation of shopper. Its purchase last year of Joybird, an e-commerce sofa and chair retailer with a big Instagram presence, has helped the brand pull in more millennial shoppers.
- La-Z-Boy shares jumped as much as 6.4 percent in late trading Tuesday. The stock has gained 16 percent this year -- outpacing the S&P 500’s rise over the period.
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