La-Z-Boy Net More Than Doubles in Q1
August 21, 2013,
MONROE, Mich.-With positive numbers flowing in terms of both sales and margins, La-Z-Boy delivered a 118.1 percent increase in net income in its first fiscal quarter, to $9.6 million.
Net sales gained 5.8 percent, totaling $318.9 million, in the quarter which ended on July 27. This included gains of 7 percent in sales in the upholstery segment and 16 percent in the retail segment. Sales in the casegoods unit were down 14.9 percent in the quarter.
Gross margin increased by 267 basis points to 32.4 percent. Selling, general and administrative expenses rose 7.9 percent in dollars and 55 basis points as a percentage of sales, to 27.7 percent. La-Z-Boy also reported a significant gain in operating margin for the upholstery segment, and the retail segment transformed an operating loss from last year's first quarter into operating income this year.
Kurt Darrow, chairman, president and CEO, said La-Z-Boy's business showed improved momentum in what is typically a slower quarter on a seasonal basis. "In addition to harnessing the power of our brand," Darrow said, "our efforts to broaden our consumer base with product introductions of compelling, stylish, on-trend furniture are enabling us to gain market share."