La-Z-Boy Reports Second-Quarter Net Income
November 18, 2009,
MONROE, Mich.-La-Z-Boy reversed a second-quarter loss from last year by posting net income of $5.7 million in this year's second quarter.
The furniture manufacturer and retailer sliced selling, general and administrative expenses by 16.6 percent and reported a drop of 16.2 percent in total cost of sales. In addition, La-Z-Boy's interest expense was cut nearly in half. All of this combined to offset a 9.4 percent fall in net sales for the quarter, which totaled $300.7 million.
La-Z-Boy said its upholstery segment managed an operating margin of 10.9 percent on a 6 percent decrease in sales in the second quarter. Also, its retail segment slashed its operating loss by 49 percent.
In a company statement, Kurt L. Darrow, president and chief executive officer, said the second quarter was La-Z-Boy's third consecutive fiscal quarter of profitability "in what continues to be a difficult macroeconomic environment." Darrow said initiatives the company has carried out over the past several years have improved its efficiencies, and its bottom line has also been bolstered by "decisive changes" made in its cost structure in the fall of 2008.