From Home Furnishing Business
La-Z-Boy Q3 Sales up 3 Percent
La-Z-Boy (NYSE: LZB) reported sales for the fiscal 2014 third quarter of $350.4 million, up 3 percent compared with the prior year's third quarter.
The Monroe, Mich.-based company's fiscal 2014 third quarter ended January 25. La-Z-Boy reported net income from continuing operations attributable to La-Z-Boy Incorporated of $17.2 million; compared with last year's third-quarter results of $16.8 million.
Same-store written sales for the La-Z-Boy Furniture Galleries store network increased 3.6 percent for the third quarter, on top of an 11.8 percent increase in last year's third quarter.
"We believe the fundamental pace of our business and ability to improve our profitability on sales growth remains steady and unchanged," said La-Z-Boy Chairman, President and Chief Executive Officer Kurt Darrow. "During the third quarter, however, weather conditions did have some impact on sales, production and deliveries. Moving forward, we are confident we have the right plan in place to grow the company through our 4-4-5 store strategy while enjoying the benefits of our lean manufacturing structure. At the same time, our integrated retail model is delivering results and our sales, merchandising and marketing teams are driving market share gains."
In La-Z-Boy's retail segment, third-quarter retail delivered sales were $80.2 million, up 10.2 percent compared with the third quarter of last year. The retail segment posted an operating profit of $3.1 million, compared with an operating profit of $2.7 million in last year's third quarter.
"Our retail segment continues to strengthen its performance and recorded its 20th consecutive quarterly improvement over prior-year results, despite the effect of weather issues, mostly in January, along the east coast and throughout the Midwest, where the majority of the company-owned stores are located," Darrow said. "During the quarter, we closed on the acquisition of two stores in Youngstown, Ohio. Much of our sales growth for the quarter was driven by recently acquired and new stores with operating and other associated start-up costs impacting our profitability in the segment for the period."
In the fiscal 2014 third quarter, the La-Z-Boy Furniture Galleries store network, including company-owned and independent-licensed stores, opened three new stores, and closed five. At the end of the quarter, 26 of the total 312 stores were in the new concept design format introduced in 2011.
Click hear for the entire La-Z-Boy third-quarter release.