MONROE, MI -- La-Z-Boy Inc. posted a second quarter profit of $3.9 million, down over 30%, on total net sales of $293.0 million, also down from last year. The contract and residential furnishings manufacturer and retailer recorded a profit of $6.0 million on $300.6 million in the same period last year.
Among the Q2 highlights:
- The upholstery segment’s sales declined 3.4% and its operating margin was 7.6% versus 10.9% in last year’s second quarter;
- The case goods segment’s sales increased 5.9% and its operating margin was 3.5% compared with a loss of (0.5%) in the previous year;
- The retail segment’s sales increased 3.2% and it experienced its seventh consecutive quarterly improvement of operating margin performance compared with the prior year; and
- At quarter end, the company had $83.7 million of cash on its balance sheet and $97.2 million of availability on its revolving line of credit.
Kurt Darrow, president and CEO, said, "While macroeconomic challenges continue to impact the overall furniture industry, the significant changes made to our cost structure have enabled La-Z-Boy to operate profitably in the lower-volume environment. Importantly, with this lower cost structure in place, we are focusing on initiatives to pave the way for future growth and market share gains when the economy strengthens and consumers are more inclined to purchase big-ticket items. While these investments are presently impacting our earnings power, we believe they are essential to positioning the company for the future. Specifically, we are investing in the La-Z-Boy brand platform, research, technology and customer care."
Darrow added, "Last month at the High Point Furniture Market, we announced that Brooke Shields will be featured in a comprehensive new brand platform, including an advertising campaign to build awareness of La-Z-Boy’s wide range and selection of comfortable and great-looking furniture. The campaign, targeted at the female consumer, debuted last week across North America on cable television and in print magazines, and will be prominently featured on our website.
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