La-Z-Boy Inc (NYSE:LZB) stock surges 17.70% (As on June 18, 11:17:38 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. At company-owned La-Z-Boy Furniture Gallery Stores, sales nudged up 1% as the company added three new locations, two of them independent La-Z-Boy Furniture Galleries stores added by acquisition. The expanded revenue base more than offset lower same-store sales. Delivered sales in the Retail Segment fell 6% to $288 million, again, facing comparisons with the prior-year’s delivery of backlog orders. Compared with the fiscal 2019 quarter, delivered sales increased 50%. In the Wholesale Segment, sales were relatively flat, down 1% to $392 million. Joybird written sales were also down 1%, coming in at $37 million as e-commerce sales trends stabilized. Profitability improved due to lower freight and warranty expenses as well as a better-balanced product mix and a higher return on advertising spending.

Meanwhile, during the year the company made great progress on the Century Vision strategy increasing both the total La-Z-Boy Furniture Galleries^® store network and the number of company-owned stores. The company opened six new company-owned stores and acquired 11 independent Furniture Galleries^® stores. The company has also invested in both the stores and manufacturing operations through remodels and improving the agility of the supply chain.

LZB in the fourth quarter of FY 24 has reported the adjusted earnings per share of 95 cents, beating the analysts’ estimates for the adjusted earnings per share of 70 cents. The company had reported the adjusted revenue decline of 1 percent to $553.5 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $516.4 million. Compared with the fourth quarter of fiscal year 2019, sales jumped 22%. La-Z-Boy finished the year with $341 million in cash and no external debt.

The company projects fiscal Q1 sales to be in the range of $475 million to $495 million. Two analysts polled by Capital IQ forecast $475.7 million.

Looking ahead, La-Z- Boy expects the industry will be down about 5% for the year, with potential improved arriving early in the calendar year of 2025 “when expected interest rate cuts filter through the economy and begin to positively impact housing activity”. La-Z-Boy is projected to outperform the industry, generating modest sales growth year-over-year in the range of $475 million to $495 million. Non-GAAP operating margin is expected to be in the range of 6% to 7%.