Why La-Z-Boy Incorporated Shares Leaped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of furniture maker La-Z-Boy (NYSE: LZB  ) surged 10% today after its quarterly results easily topped Wall Street expectations.

So what: The stock has soared in 2013 on rebounding demand, and today's second-quarter results -- net income more than doubled on a revenue increase of 14% -- only reinforce that positive trend. In fact, same-store sales during the quarter increased 9.8% despite relatively flat traffic, giving analysts plenty of good vibes about its pricing power going forward.

Now what: Management doesn't expect the operating momentum to slow anytime soon. "We believe our positive sales trajectory is indicative of continued market share gains, and with the strength of the La-Z-Boy brand, our vast distribution network and our lean manufacturing structure, we are well positioned for future profitable growth," said Chairman and CEO Kurt Darrow. Of course, with the stock now up about 100% from its 52-week lows and trading at a forward P/E of 20, much of that growth might already be baked into the valuation. 

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