La-Z-Boy Net Jumps 153 Percent in Q2
MONROE, Mich.-With sales and operating margins from its two segments making significant gains, La-Z-Boy posted net income of $16.7 million in its second quarter, up 153 percent from the second quarter of last year.
Total company net sales climbed 13.7 percent to $366.4 million in the quarter, which ended on Oct. 26. This included a gain of 19.9 percent in retail delivered sales and a pickup of 14.2 percent in the company's upholstery segment. Operating margin for the latter segment increased from 8.4 percent last year to 11 percent this year, while the former transformed from an operating loss to an operating profit from last year's quarter to this year's.
Overall gross margin improved by 266 basis points to 33.8 percent. Selling, general and administrative expenses, while increasing 9.6 percent in dollars, fell 100 basis points as a percentage of sales to 26.8 percent.
"Our performance for the quarter reflects the successful execution of our sales, merchandising and integrated retail strategies, as well as the efficiencies with which we are running our operations," said Kurt Darrow, La-Z-Boy chairman, president and CEO.
Looking ahead, Darrow said the company's efforts to transform its business over the past five years have built a platform for future success. "We have built a strong foundation across our business in terms of operating efficiencies with creative and fresh marketing and merchandising initiatives," he said.