MONROE, MI - La-Z-Boy Inc. (NYSE: LZB) sales rose 4.8% to $322.3 million for the 2nd quarter ended October 27, 2012. The furniture and recliner manufacturer reinstated its quarterly dividend.
Darrow said La-Z-Boy's Hudson, NC plant began production in August of several new American Drew bedroom groups, increasing capacity utilization at the plant.
"We are in the process of converting the Hudson facility to a production model that emulates the cellular structure at our La-Z-Boy branded facilities. This new process will focus on assembling and finishing component parts in smaller quantities than our current operation," Darrow said
"We have closed our lumber processing operations and will begin sourcing all wood parts. This will result in lower overhead and operating costs moving forward. We continue to believe that maintaining our domestic casegoods production with its customization and quick-ship attributes is strategically important, providing the facility is operating profitably."
Net income for La-Z-Boy Inc. was $6.8 million, down from $7.7 million the year prior, due to a restructuring charge. During the period La-Z-Boy acquired nine La-Z-Boy Furniture Galleries stores in the southern Ohio market, and now owns 97 stores.
Same-store sales outpaced the industry, growing at 13.3%, according to Kurt Darrow, CEO.
"We increased our marketing spend on the brand campaign, which we believe is delivering strong results, and opened or remodeled several stores," said Darrow.
Sales in La-Z-Boy's upholstery segment increased to $259.5 million from $241.4 million in the prior year; casegoods sales fell 3.9% to $34.5 million.
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