La-Z-Boy shares rise on better-than-expected profit

(Reuters) - Shares of La-Z-Boy Inc LZB.N rose as much as 10 percent to touch a three-year high on Wednesday, a day after the furniture maker and retailer reported a significantly better-than-expected third-quarter profit.

In the third quarter, system-wide same-store written sales rose 3.9 percent.

“Although too early to consider our same-store sales figures for the quarter a trend, we do find them encouraging. More importantly, we believe they are indicative of La-Z-Boy increasing its market share,” Chief Executive Kurt Darrow said on a conference call with analysts.

The company saw a 42 percent narrower loss in its retail segment due to an increase in average ticket size and traffic.

Darrow said the company still needs a 20 percent to 25 percent increase in volumes to make its retail segment profitable.

On Tuesday, the company reported adjusted earnings of 17 cents a share, compared with analysts’ estimates of 9 cents a share, due strong demand at its upholstery business and lower costs.

Shares of Monroe, Michigan-based La-Z-Boy were up 72 cents at $12.36 in the Wednesday morning trade on the New York Stock Exchange. They had earlier touched a high of $12.76.

Reporting by Shobhana Chadha in Bangalore; Editing by Anne Pallivathuckal