La-Z-Boy Jumps as Consumers Keep Coming Into Its Physical Stores

Aviel Brown, Bloomberg News

(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.

Key Insights

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.

Market Reaction

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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