Let’s talk about La-Z-Boy (NYSE:LZB).
I know you’ve heard of it. You probably have one at home. It’s the largest furniture company out there.
Now here’s the thing -- I know execution hasn’t been great. In fact, they missed the Street two of the last three quarters. However, I love some of the other things that are going on.
We’ve talked a lot on this show about household formation. Renting or buying -- it doesn’t matter. You need to buy your own La-Z-Boy when you get yourself your first apartment. Right? As soon as you come out of Mom’s basement, you buy your own La-Z-Boy!
Last time they reported, I did see some good things. Gross margins were up from 35% to over 36%. Their retail business -- I like! The retail business -- not the biggest segment of the business, but obviously important -- at 89, almost 90 million. Up 12%. Operating margins up a full percentage point -- 4.7% from 3.8%.
And the stock- I like the way it looks on the chart. You could see the chart there (watch the video clip above).
Listen – it’s one of these names where I don’t know that it’s going to pop tomorrow, but I feel like I’m getting in early and I’m going to make some money with this thing. So it won’t be a flyer. It won’t be one of these tech names that we try to do every now and then. But I feel good about this one.