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Ahead of the Bell: La-Z-Boy jumps on strong 1Q

NEW YORK (AP) -- La-Z-Boy Inc. shares jumped more than 7 percent in premarket trading Wednesday, after the furniture company reported fiscal first-quarter profit that matched Wall Street predictions amid better-than-expected sales.

For the quarter ended July 28, the Monroe, Mich.-based company's profit actually tumbled 90 percent on tough comparisons to a prior-year quarter boosted by a big tax-related gain. Late Tuesday, the furniture maker said it earned $4.4 million, or 8 cents per share, for the quarter ended July 28. That compared with $45.5 million, or 86 cents per share, in the same quarter last year.

The year-ago period included an income tax benefit of $41.9 million, while the recent quarter included income tax expense of $2.8 million.

Revenue rose 8 percent to $301.5 million from $280.1 million.

Revenue at its stores open at least a year jumped 9.2 percent. The metric is a key measure of a retailer's health, because it excludes revenue at stores that opened or closed during the year.

Analysts, on average, expected a profit of 8 cents per share on $290.5 million in revenue, according to FactSet.

At the company's wholesale business, upholstery segment sales rose 9.5 percent to $238.2 million. Meanwhile, retail sales jumped 17 percent to $57.1 million.

La-Z-Boy shares rose $1, or 7.4 percent, to $14.50 in premarket trading. The stock has traded between $6.76 and $16.43 in the past 52 weeks.