Investing.com -- Shares in La-Z-Boy Incorporated (NYSE:LZB) fell more than 4% in after-hours on Tuesday after one of the nation's largest sofa manufacturers saw its profits rise but failed to meet earnings' expectations over its last quarter.
The Michigan-based furniture company's consolidated operating income increased 31% during its fiscal fourth quarter, which ended in late-April amid a strong operating margin in its upholstery segment. For La-Z-Boy's fiscal year of 2015 as a whole, the company increased its consolidated operating margin by 7.2% as its consolidated operating income increased from $89.3 million in 2014 to $103.2 million. La-Z-Boy reported quarterly earnings of $374.9 million or 0.38 per share, below analysts' forecasts of $379.1 million. The earnings for the fourth quarter exclude one-time restructuring costs incurred during the period.
"We are pleased with our results for the full fiscal 2015 year. We increased sales across all three operating segments, and increased our consolidated operating profit, earnings per share and dividend," La-Z-Boy CEO Kurt L. Darrow said in a statement. "Our La-Z-Boy Furniture Galleries network posted a 3.0% increase in written same-store sales and the company as a whole generated strong cash flow, allowing us to return $66.4 million to shareholders through dividends and share purchases, an increase of 56% from fiscal 2014."
The company is in the midst of a comprehensive reshuffling strategy with its goal of opening 400 new stores in a period of five years. Last week, the company unveiled its new corporate headquarters in Monroe, Michigan, a three-story, 200,000 square foot facility, that features an open floor plan and flexible workspace.
"We are optimistic about our positioning in the marketplace and growth prospects. Our brand is the most recognized in the industry, and our product, stores and marketing are more in sync than ever, providing us with a solid platform for profitable growth and market share gains," Darrow added.
"As our business increases, we have the ability to leverage the efficiencies of our operating platform while driving enhanced profitability through our integrated retail model. We will continue to make strategic investments in the business with the goal of delivering long-term profitable growth while enhancing returns to shareholders."
Shares in Laz-Z-Boy fell 1.20 or 4.40% to 25.96 in after-hours trading.