La-Z-Boy Reports Second-Quarter Net Income

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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.