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:

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.