MONROE, Mich.-La-Z-Boy brought an impressive fiscal year to an end with a 90 percent increase in net income for its fiscal fourth quarter, along with a 266 percent rise in net income for its fiscal year.
For the quarter ending on April 28, net income totaled $19.6 million, while for the year it rounded up to $88 million. Kurt Darrow, La-Z-Boy’s chairman, president and CEO, attributed to success on the bottom line to “increased sales, an efficient operating structure, brand strength, a strong network of proprietary distribution and better execution throughout our business segments.”
While net sales in the quarter dropped 3.4 percent to $327.4 million, it picked up 3.8 percent for the year to finish at $1.2 billion. Declines in La-Z-Boy’s casegoods and retail segments offset a small increase in upholstery sales in the quarter. For the La-Z-Boy Furniture Galleries, same-store sales jumped 10 percent in the quarter and 9.4 percent for the fiscal year.
The efficiencies Darrow spoke of could be seen in the company’s selling, general and administrative expenses. SG&A dollars for the quarter dropped 5.4 percent, and shed 55 basis points as a percentage of sales to 26.4 percent. Gross margin declined 32 basis points to 31.6 percent.
Looking ahead, Darrow said, “Given the strength of our brand, the breadth of our branded distribution network, plans for store growth and the level of same-store sales improvements over the past 18 months, La-Z-Boy…is positioned to continue to improve its market share and will further capitalize on any strengthening in the economy, particularly consumer confidence and the housing market.”