MONROE, MI - La-Z-Boy Inc. (NYSE: LZB) says furniture sales increased 5 percent second quarter 2012, reaching $307.7 million. Net income attributable to La-Z-Boy Incorporated more than doubled to $7.9 million th $3.9 figure for second quarter 2011.
"We believe we are gaining market share," said CEO Kurt L. Darrow in announcing the results. He noted La-Z-Boy recorded its 11th consecutive quarterly improvement in operating performance at its retail segment.
Darrow said la-Z-Boy's upholstered furniture segment profitability has risen even more rapidly than its sales volume, and that manufacturing reorganization was improving margins.
"Our cellular operating platform provides for efficient production and our Mexico-based cut-and-sew center is delivering the cost savings we anticipated," Darrow said. When La-Z-Boy first moved upholstery operations to Mexico there were some kinks in the transition. A hurricane delay start-up and complicated shipping.
The casegoods segment operation volume declined 9 percent compared to last year's second quarter,Darrow said, but margins were good, reflecting cost-containment and a price increase to offset material costs.
La-Z-Boy has three operating segments: upholstery; casegoods; and retail. Its Upholstery Group companies are Bauhaus, England and La-Z-Boy; the Casegoods Group consist of two groups, Kincaid, and the trio of American Drew, Lea and Hammary. The company-owned retail segment includes 83 of the 304 La-Z-Boy Furniture Galleries stores.
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