Shares of La-Z-Boy skyrocketed on Wednesday after the company reported better-than-expected results for its fiscal first quarter.
La-Z-Boy reported earnings per share of 34 cents compared with a Thomson Reuters estimate of 25 cents. The company also beat on revenue estimates, with sales growing 7.7 percent, to $385 million, while analysts expected sales to total $368 million.
The results sent La-Z-Boy's stock surging by more than 13 percent, putting it on track for its best day since June 21, 2017. That day, the stock jumped 22.1 percent.
CEO Kurt Darrow said a 3.1 percent increase in same-store sales in the company's La-Z-Boy Furniture Galleries network was a key contributor to the strong results as well as strong sales growth in all 139 company-owned stores. "We had an excellent start to fiscal 2019, with strong results across the business," Darrow said.
Darrow said that he feels optimistic about the company, "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."
The chief executive added that the acquisition of Joybird, announced on July 26, will boost La-Z-Boy's growth. The acquisition is expected to close sometime in the company's fiscal second quarter.
La-Z-Boy's stock was up 6.1 percent for the year prior to Wednesday, lagging the S&P Small Cap 600, which was up 16.4 percent through Tuesday's close.