La-Z-Boy earnings fall in latest quarter
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MONROE, Mich. - La-Z-Boy Incorporated (NYSE:LZB) reported a drop in sales and net income for its second quarter ended October 29, 2016.
 
Sales for the fiscal 2017 second quarter were $376.6 million, down 1.6 percent.
 
“The consumer environment experienced weaker demand during the summer and early fall," said Kurt L. Darrow, CEO. "Macroeconomic indicators that generally bode well for discretionary spending and home furnishings remain positive."
 
Darrow said the company to capitalize on what is typically a strong holiday selling season.  Also, we are making investments in our business to drive long-term growth and profitability. 
 
La-Z-Boy signed an agreement to acquire the license for the La-Z-Boy brand in the U.K. and Ireland and plans to close on the transaction during the third quarter and acquired four stores in the Canadian market. Annual sales volume for the United Kingdom and Ireland La-Z-Boy business is approximately $42 million, based on current exchange rates.

An ERP computer management system, implemented throughout the La-Z-Boy branded facilities about a year ago, is helping the firm manage its inventory and work flow better, Darrow said. "Our on-time shipping and speed to market have increased significantly over last year."

“We continue to make progress in our casegoods business with respect to streamlining the segment’s operations," Darrow said. The company's  Kincaid line also launched a renewed effort to open new proprietary Kincaid Gallery accounts, and coupled with new product introductions, "will provide for more opportunity to champion the brand’s solid-wood construction,” according to Darrow.
 

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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.