La-Z-Boy Q2 Sales up 4.8%November 29, 2012
The company reported net income attributable to La-Z-Boy Inc. of $6.6 million, or $0.12 per diluted share, after $0.03 in restructuring charges relating to the company's case goods segment, versus $7.9 million, or $0.15 per diluted share in the prior-year period.
Same-store written sales for the La-Z-Boy Furniture Galleries store network increased 13.3 percent for the three months ended Oct. 27. Warren, Mich.-based La-Z-Boy'sThe upholstery segment's sales increased 7.5 percent; and during the period, the company completed its acquisition of nine La-Z-Boy Furniture Galleries stores in the southern Ohio market.
Delivered sales in the company-owned retail segment increased 16.1 percent (including the southern Ohio and other new stores). The delivered sales increase of the same 83 stores included in last year's second quarter was 10.2 percent.
Through fiscal 2013's first six months, La-Z-Boy sales of $623.8 million are 6.1 percent ahead of the prior year.
"During the quarter, our overall sales performance outpaced industry trends, led by a 13.3 percent same-store sales increase for the La-Z-Boy Furniture Galleries network of stores," said CEO Kurt Darrow. "We remain focused on driving growth and increased profitability and, with an eye on the future, continued to make strategic investments this quarter. During the period, we increased our marketing spend on the brand campaign, which we believe is delivering strong results, and opened or remodeled several stores. This additional investment during the quarter, coupled with increased incentive compensation expenses stemming from improvements in sales and operating results, affected our earnings for the period. As we move into the back half of the fiscal year, we expect incentive compensation expenses to have less of an impact compared to the first half of the year. We are also pleased to be in a position to reinstate our quarterly dividend to shareholders, which will be $0.04, demonstrating the faith our management team and Board of Directors have in our business model and strategy."