La-Z-Boy (NYSE:LZB) reported its 3Q results in February beating analyst's estimates and reaching several key targets. LZB reported earnings of .43 cents per share with revenues coming in at $384.01M beating analysts estimates by .03 cents and $7.47M respectively. After the earnings beat, LZB share price rose nearly 19% and has since sustained its current levels.

La-Z-Boy's management is executing well after reporting that the company has reached its ambitious 4-4-5 store initative plan target 2.5 years ahead of projections. Launched in 2014, the company's 4-4-5 growth store initiative was an aggressive plan to grow the company's retail business by increasing the number of company owned stores to 400, all while averaging $4M in revenue per store over a 5 year time period.  La-Z-Boy has announced it has reached its 4-4-5 target in half the time expected just over 2 years. It bodes well for LZB that the company is executing on its strategies and is a testament to the company's current managements credibility moving forward.

Q3 was a good one for the company. The retail segment of the business continues to perform exceptionally well, with sales increasing 22.7%y/y to $110M. This is an increase of 66% in the company's retail business since the 4-4-5 plan was announced in 2013. The aim of the 4-4-5 plans was also to increase LZB's upholstery business, the largest segment of the company. Some key milestones were reached in Q3:

• · Consolidated Operating Margins at 9.1% the highest in any quarter in 12 years
• · Retail Margins at 8% the highest in company history
• · Consolidated Earnings in Q3 were up 7.3% Y/Y

In Q3 LZB's upholstery segment increased 5.6% Y/Y. Margins were particularly impressive in 3Q with Upholstery margins at 10.9%, Retail margins increased over 70% on a Y/Y basis to 8%, and Case goods margins increased 118% Y/Y to 7.2%. Zack's Equity Research downgraded LZB to a sell just before earnings. Since then they have reassessed that decision and have upgraded the stock. Currently, 4 analysts covering the stock rate LZB a strong buy.

LZB data by YCharts

Institutional ownership continues to buy into LZB with BlackRock (16.15%) and Vanguard (7.3%) both adding shares recently. La-Z-Boy is moving in the right direction and reached several milestones in the most recent quarter. LZB next target is to become a $1.6B enterprise in North America alone, and plans to open 20 new stores in the next year. With the company's strong management that is executing on its goals, there is reason to believe the company can continue to act on the guidance it gives.