What occurred 

Shares of La-Z-Boy (LZB -0.61%) rose 14% over the previous week, in keeping with information offered by S&P World Market Intelligence, after the furnishings maker delivered income and earnings that have been considerably greater than traders anticipated.  

So what

La-Z-Boy’s retail phase gross sales surged 27% yr over yr to $251 million in its fiscal 2023 third quarter, which ended on Jan. 28. CEO Melinda Whittington mentioned the sturdy efficiency was pushed by the corporate’s engaging worth proposition of “snug customized furnishings with fast supply.”

“Throughout La-Z-Boy, we’re capitalizing on and investing in our model heritage of consolation. We’re honing our messaging, investing in focused advertising and marketing, sharpening worth factors, and guaranteeing sturdy execution,” Whittington mentioned in a press launch.

La-Z-Boy was additionally in a position to work by means of its backlog of orders, which helped to cut back the time clients wanted to attend to obtain their gadgets. That helped the corporate generate whole gross sales of $573 million, which topped Wall Avenue’s estimates of $530 million. 

Higher nonetheless, greater gross sales drove a pointy enhance in La-Z-Boy’s profitability. Its adjusted working revenue climbed 34% to $53 million, as its working margin improved by 2.3 share factors to 9.3%. La-Z-Boy’s adjusted internet revenue, in flip, leaped 37% to $39 million. And its adjusted earnings per share, which have been boosted by inventory buybacks, soared 40%, to $0.91.

Now what 

Administration expects La-Z-Boy to generate gross sales of $525 million to $545 million in its fiscal 2023 fourth quarter, with an adjusted working margin of seven% to 9%.

“As we transfer by means of this unsure financial atmosphere, we are going to proceed to make use of agility, a consumer-first focus, and our sturdy monetary place to make sensible investments to drive functionality and model attain,” Whittington mentioned. “I’m assured we are going to emerge stronger and seize elevated market share.”