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La-Z-Boy tops analyst estimates in 1Q, reveals details of latest acquisitions

Last updated: 16:39 21 Aug 2018 EDT, First published: 16:25 21 Aug 2018 EDT

La-Z-Boy storefront
The maker of the iconic recliner surpassed analyst estimates on earnings and revenue

La-Z-Boy Incorporated (NYSE:LZB) was anything but sluggish in ts fiscal first-quarter earnings, topping analyst estimates on earnings and revenue.

The maker of the iconic recliner reported earnings of US$0.39 per share on revenue of US$384.7mln compared with US$0.24 on revenue of US$357.08mln in the previous year’s first quarter.

The Michigan-based company crushed Wall Street estimates of US$0.25 EPS on revenue of $368.17mln.

Shares soared more than 18% to US$39.10 in Tuesday after-hours trading.

READ: La-Z-Boy to acquire e-commerce retailer Joybird in a bid to reach younger consumers

“We are optimistic about the potential for La-Z-Boy Incorporated over the long term, although concerns relating to potential duties and tariffs that could impact the business persist and we are monitoring that situation closely to determine what changes may be appropriate,” said CEO Kurt Darrow in the company’s press release.

In July, the furniture maker announced its plans to acquire Joybird, an e-commerce retailer specializing in upholstered furniture, in an attempt to attract younger consumers.

The company revealed that it acquired Joybird for a total of US$75mln, including US$50mln in cash and US$25mln paid annually over five years and two future earn-out opportunities.

La-Z-Boy also closed on the acquisition of nine La-Z-Boy Furniture Galleries stores for a total of US$40mln. The Arizona-based stores are expected to add around US$40mln in sales volume to the company.

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