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From Home Furnishing Business

La-Z-Boy 3Q Income Climbs

La-Z-Boy (NYSE: LZB) reported net income of $21.9 million for the third quarter ended Jan. 23 compared to net income of $17.8 million during the same period last year.

Net sales for the quarter were $384 million, a 7.3 percent increase over net income of $357.9 million in the third quarter last year.

"We are very pleased with our results for the quarter,” said Kurt Darrow, chairman, president and CEO. “Across the business, we experienced a 7.3 percent increase in sales which translated to strong operating margin performance in all three business segments. Our consolidated operating margin was 9.1 percent, the highest the company has achieved in any quarter in more than 12 years. These results demonstrate solid execution across the business, including supply chain optimization, improved forecasting and planning, and more consistent service and delivery.”

The company’s wholesale upholstery sales increased 5.6 percent in the third quarter to $302.4 million. Case goods sales were $24.6 million, a 5.3 percent dip from the same period last year.

Sales in the company’s retail division increased 22.7 percent to $110.2 million over last year’s third quarter.

"Our retail segment is continuing to grow and perform at a high level,” Darrow said. “Excellent planning and promotional cadence throughout the period drove sales, and the increased volume allowed us to leverage the fixed-cost structure of the business, which consists primarily of occupancy and distribution-related costs. We also improved the segment's gross margin, fueled by an increase in In Home Design and custom orders as well as strong performance in the power category."

The complete earnings release is available online

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