U.S. stocks were in the red on Wednesday, with coronavirus cases advancing in some states. The Dow Jones Industrial Average fell 3.06% to 25,360, the S&P 500 index lost 2.92% to 3,039 and the Nasdaq Composite Index was down 2.62% to 9,865.
The main European stock markets traded in the red. The UK's FTSE 100 fell 2.87%, France's CAC 40 retreated 2.73%, Germany's Dax was down 3.18% and Spain's Ibex 35 lost 3.05%.
In Asia, Japan's Nikkei 225 slid 0.07%, India’s BSE Sensex fell 1.58%, Hong Kong's Hang Seng dipped 0.50% and China's Shanghai Composite was up 0.30%.
La-Z-Boy releases earnings report
Shares of La-Z-Boy Incorporated (LZB, Financial) fell 2.5% on Wednesday morning after the company announced its fourth-quarter results. It posted earnings per share of 49 cents, beating analysts’ estimates by 29 cents. Revenue of $367.28 million declined year-over-year and fell short of predictions by $17.68 million.
CEO Kurt L. Darrow had the following to say:
"La-Z-Boy delivered strong performance for 10 months of fiscal 2020 through February. The iconic La-Z-Boy brand, excellent Retail performance, great product introductions and supply chain strength translated to solid sales and earnings growth for those 10 months. Our fourth quarter started with a 20.4% increase in written same-store sales for the entire La-Z-Boy Furniture Galleries® network in February, and we experienced other examples of strength across our vast network of distribution. However, the trajectory of sales and earnings growth for the last two months of the year were significantly impacted by COVID-19 ... The majority of retailers, including our company-owned La-Z-Boy Furniture Galleries® stores, closed for at least the last four weeks of our quarter, and most closures extended into the first quarter of fiscal 2021. We temporarily closed the majority of our manufacturing operations… and dramatically reducing all other cash expenditures to preserve liquidity."
The consolidated GAAP operating margin was 3.7% versus 8.2% in the prior-year quarter, while the Non-GAAP margin reached 9.3% versus the 8.6% reported in the fiscal 2019 fourth quarter.
The cash generated from operating activities was $44.5 million. Further, the company returned $14.5 million to shareholders through share purchases and dividends.
Chuck Royce (Trades, Portfolio) cut his holding in the company by 34% to 349,917 shares. Jim Simons' Renaissance Technologies added 152% to its investment for a total of 44,300 shares. Philippe Laffont (Trades, Portfolio) sold out the stock.
Disclosure: The author holds no positions in any stocks mentioned.
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