La-Z-Boy Profit, Sales Rise by Double Digits in Q3
February 20, 2013,
MONROE, Mich.-With all systems go from both the wholesale and retail segments, La-Z-Boy's net income and net sales both made double-digit gains in its fiscal third quarter ending on Jan. 26.
Net income rose 14.1 percent to $17.1 million, and net sales posted a 10.3 percent pickup to finish at $349.1 million. The company's numbers benefited from an increase of 12.3 percent in upholstery sales, along with a gain of 14.1 percent in overall retail sales and an 11.8 percent jump in same-store sales for the La-Z-Boy Furniture Galleries store network.
Kurt Darrow, La-Z-Boy's chairman, president and CEO, said, "We continue to experience strong performance and improvement in our retail business, leading to profitability this quarter while further validating our integrated retail strategy." Darrow said the company's continuing investment in its "Live life comfortably" advertising campaign has spotlighted La-Z-Boy's products, especially in upholstered furniture. "Sales increases in stationary product are outpacing our core recliner business, and the power category continues to perform well," he said.
Overall gross margin increased by 104 basis points to 32.5 percent, helped by efficiency drives at the company's plants. Selling, general and administrative expenses were up 8.9 percent in dollars but declined 32 basis points as a percentage of sales, to 25.8 percent.
Darrow said the improving housing market, coupled with what has historically been La-Z-Boy's strongest volume period, has put the company in a cautiously optimistic mood for the fourth quarter.