MONROE, Mich.-La-Z-Boy posted fourth-quarter net income of $12.2 million, down 33.1 percent from the fourth quarter of last year. This brought net income for the full fiscal year ending on April 26 to $55.1 million, an increase of 18.7 percent.
Net sales in the quarter were up 2.1 percent to $353 million, bringing net sales for the year to $1.4 billion, up 6.6 percent. Kurt Darrow, La-Z-Boy’s president and CEO, said the fiscal year brought increased sales, operating profit, cash flow and a dividend, along with strengthening its balance sheet.
Looking at the fourth quarter, sales in La-Z-Boy’s upholstery segment gained 2.3 percent, but sales in the casegoods segment fell 5 percent. Also, same-store sales in the La-Z-Boy Furniture Galleries store network declined 4.9 percent. Darrow said the weather issues which began in the company’s third quarter continued to affect the top line in both the wholesale and retail segments in the fourth quarter as well.
Gross margin in the quarter dropped 125 basis points to 33.6 percent. Selling, general and administrative expenses rose 2.9 percent in dollars and 22 basis points as a percentage of sales, to 27.2 percent.
“Moving forward,” Darrow said, “we believe the initiatives we have established throughout our wholesale and retail operations, coupled with the financial strength and flexibility to invest in our business, will position us for continuing, long-term profitable growth.”