NEW YORK (TheStreet) -- La-Z-Boy (LZB) was gaining in after-hours trading after the producer of reclining shares posted fiscal second-quarter earnings that beat analyst forecasts. The manufacturer reported net income of 31 cents a share, surpassing a consensus estimate by a nickel.
La-Z-Boy posted 366.4 million in revenue for the three-month period ended Sept. 30. Analysts surveyed by Thomson Reuters had anticipated revenue of $349.4 million.
Gross sales increased 13.7% on a year-over-year basis, boosted by retail sales growth of 19.9% and the wholesale upholstery segment's 14.2% increase. Same-store sales for La-Z-Boy Furniture Galleries network were up 9.8% compared to the year-ago quarter.
"We believe our positive sales trajectory is indicative of continued market share gains, and with the strength of the La‑Z‑Boy brand, our vast distribution network and our lean manufacturing structure, we are well positioned for future profitable growth," said CEO Kurt L. Darrow in a statement.
The Monroe, Michigan-based business also announced it had increased its quarterly dividend 50% to 6 cents a share.
In post-market trading, shares had gained 6.3% to $25.95. Year to date, the stock has climbed 72.6%.
TheStreet Ratings team rates La-Z-Boy Inc as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate La-Z-Boy Inc (LZB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."