La-Z-Boy reports 22% jump in net income as sales rise 7.3%
MONROE, Mich. — La-Z-Boy said net income jumped more than 22% to $21.9 million in the quarter ended Jan. 23 as the company saw strong performances from its upholstery, case goods and retail segments.
The company said the improved bottom line, which equaled 43 cents per share, was driven by a 7.3% sales increase and strong operating margins in all three segments. The quarterly operating margin of 9.1% was the highest in more than 12 years.
Sales totaled $384 million, up from $357.9 million in the same quarter of the prior fiscal year.
“These results demonstrate solid execution across the business, including supply chain optimization, improved forecasting and planning, and more consistent service and delivery,” said Kurt Darrow, chairman, president and CEO. “We are very pleased with our results for the quarter.”
Wholesale sales in the company’s upholstery segment rose 5.6% to $302.4 million, while wholesale case goods sales fell 5.3% to $24.6 million.
Sales at company-owned La-Z-Boy Furniture Galleries stores jumped 22.7% to $110.2 million, and the business posted an 8% operating margin.
“Our retail segment is continuing to grow and perform at a high level,” Darrow said. “We are particularly pleased that just halfway through our 4-4-5 store build-out initiative, we reached our $4 million average-revenue-per-store objective, which, we believe bodes well for future performance.”
The company ended the quarter, the third quarter of its fiscal year, with 123 corporate retail stores, including 10 that were acquired from a licensee in the second quarter. Nationwide, there were a total of 331 La-Z-Boy stores at the end of the quarter, and Darrow said more than 20 new stores will be opened during the next 12 months.
For the nine months ended Jan. 23, sales rose 5.5% to $1.11 billion. Nine-month net income totaled $56.5 million or $1.12 per share. That was up from $50.6 million or 97 cents per share in the first nine months of the previous fiscal year.
Third fiscal quarter sees highest operating margin in more than 12 years
Larry Thomas -- Furniture Today
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