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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