MONROE, MI - La-Z-Boy (NYSE: LZB) sales rose 13.7% to $366 million in the second quarter. Results show lean manufacturing and good marketing have put the upholstered furniture maker on a solid footing for continued growth, says CEO Kurt Darrow.
Net income for La-Z-Boy was $16.7 million, more than double last year's second quarter number of $6.6 million.
"We believe our positive sales trajectory is indicative of continued market share gains," said Kurt L. Darrow in an earnings announcement. "With the strength of the LaâZâBoy brand, our vast distribution network and our lean manufacturing structure, we are well positioned for future profitable growth."
Darrow said La-Z-Boy's upholstery business continues to exhibit momentum and is approaching three years of double-digit written same-store sales growth for the La-Z-Boy Furniture Galleries network of stores. Casegoods, which includes Kincaid, American Drew and Lea products, have been challenging for La-Z-Boy, and Darrow says new marketing and shipping efforts may help the segment, including a mix container program launched at High Point Market.
At the October Furniture Market in High Point, NC, La-Z-Boy introduced Urban Attitudes, "the most significant collection we have launched in 10 years in terms of styling and product relevance," Darrow says.
"On the operating side of the business, we continue to be diligent in managing our cost structure and are benefiting from incremental volume and the ability to leverage the fixed-cost base in place throughout our manufacturing facilities."
Darrow said he is optimistic about the business. "Although there is uncertainty in Washington with respect to the debt ceiling and how that may impact the consumer, we are moving forward with plans to drive growth."
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