La-Z-Boy more than doubles 4Q profit
Sales up 9.2%, led by gain in upholstery segment
Larry Thomas -- Furniture Today, June 15, 2010
MONROE, Mich. — La-Z-Boy said fourth-quarter profits were more than double last year's fourth quarter as its upholstery segment enjoyed double-digit increases in sales and operating income.
For the quarter ended April 24, net income totaled $13.7 million or 26 cents per share. That compares with $5.2 million or 10 cents per share in the same period last year.
Fourth quarter sales rose 9.2% to $310.7 million, a figure included a $241.1 million in upholstery sales. The upholstery figure was 12.2% higher than in last year's fourth fiscal quarter.
The upholstery segment also recorded operating income of $28.6 million, a jump of more than 47% from $19.4 million in the same period last year.
"The performance in our upholstery segment was largely fueled by the cellular production process that we implemented throughout our La-Z-Boy branded facilities," said Kurt Darrow, president and CEO. "Although a capital-intensive and lengthy undertaking over a three-year period, it has enhanced the efficiencies of our operations, even in the lower volume environment in which we are operating."
Case goods sales for the quarter fell 4.5% to $37.5 million and the segment had an operating loss of $230,000. In last year's fourth quarter, the operating loss was $1.3 million.
Sales at company-owned retail stores rose 2.1% to $13.6 million, and the segment had an operating loss of $4.7 million. That was an improvement on the $7.3 million operating loss in the same quarter last year.
However, the company said system-wide same-store sales rose 2.5%, a figure that includes company-owned and independent La-Z-Boy stores.
For the fiscal year that ended April 24, companywide sales fell 3.9% from the previous year to $1.2 billion.
Net income for the year was $32.6 million or 62 cents per share. That compares with a net loss of $122.7 million or $2.39 per share the previous fiscal year.
This year's net income included a one-time restructuring charge of 4 cents per share, and a gain of 5 cents per share from antidumping duties received on wood bedroom furniture imported from China.
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