MONROE, MI – La-Z-Boy Inc. saw increased sales over the fiscal 2014 third quarter, this in spite of continued challenges in the wood casegoods sector.
The company reported sales of $350.4 million, up 3.0% compared with the prior year's third quarter. Net income from continuing operations attributable to La-Z-Boy rose to $17.2 million, up from last year’s $16.8 million
“We believe the fundamental pace of our business and ability to improve our profitability on sales growth remains steady and unchanged,” said Kurt Darrow, chairman, president and CEO of La-Z-Boy. He added, however, that La-Z-Boy is addressing its slow-to-recover casegoods segment.
"Our casegoods business remains challenged in this macroeconomic environment as consumers postpone large wood room group purchases, particularly formal collections," Darrow added. "To address this, we are refreshing both the Kincaid and American Drew product lines with more transitional and casual room groups to appeal to a broader demographic. These groups are beginning to ship this quarter. Additionally, the Direct Container Program, which was introduced at the October Furniture Market, will begin product deliveries in our fourth quarter. It will allow dealers to mix Kincaid, American Drew and Lea product into one container, and will reduce delivery times while improving transportation costs, especially to the West Coast."
Fiscal 2014’s third-quarter saw same-store written sales for the La-Z-Boy Furniture Galleries store network increase 3.6%, on top of an 11.8% increase in last year's third quarter. Consolidated operating income increased to $25.4 million from $22.8 million, and the company’s upholstery and retail segments posted higher operating margins than last year’s third quarter.
Have something to say? Share your thoughts with us in the comments below.