La-Z-Boy profits dip in third qtr.
Furniture Today Staff -- Furniture Today, February 24, 2011
MONROE, Mich. — La-Z-Boy said profits in its third fiscal quarter were 10.2% below the same quarter the previous year amid a weak housing market and shaky consumer confidence.
The company said demand was weak in its upholstery and case goods segments, but said sales jumped 9.2% at company-owned retail stores.
Companywide, sales totaled $291.9 million, a drop of 4.3% from the same quarter in the previous fiscal year. Upholstery sales fell 3.9% to $225.2 million, while case goods sales were off 1.7% to $36 million.
Net income was $10 million, or 19 cents per share. That compares with $11.2 million, or 21 cents per share, in the same quarter the previous year.
The most recent quarter includes income of $900,000, or 1 cent per share, from antidumping duties on Chinesemade wood bedroom furniture. Last year's third fiscal quarter included anti-dumping duties of $4.4 million, or 5 cents per share.
"We continue to execute effectively against our strategic objectives and achieved improved operating results in both the case goods and retail business segments," said Kurt Darrow, president and CEO. "We are also encouraged by the improvement of the La-Z-Boy Furniture Galleries store network's same-store sales comparison after last quarter's negative 7.1% performance and this quarter's increase of 4.7%."
The retail segment cut its operating loss to $2.8 million from $4.1 million in last year's third quarter.
Since the end of the quarter, the company has taken over 15 La-Z-Boy stores from a retiring dealer in Southern California, boosting its company-owned store count to 83.
Including licensed stores, there are 305 La-Z-Boy Furniture Galleries locations.
Darrow said he is encouraged by the early results of the company's new marketing campaign featuring Brooke Shields and is optimistic the campaign will drive additional traffic to all La-Z-Boy dealers.
"However, until the housing sector strengthens and we see a steady improvement in the overall consumer confidence level, we are guardedly optimistic that we are experiencing a turnaround in the marketplace for furniture," he said.
Sales for the nine months ended Jan. 22 totaled $848.2 million, down 2.3% from the nine months ended Jan. 23, 2010.
Nine-month net income fell 26.5% to $13.7 million, or 26 cents per share.
La-Z-Boy | |||
Quarter ended 1/22 | 2011 | 2010 | Change |
Sales | $291,943,000 | $305,094,000 | (4.3%) |
Operating income | 10,224,000 | 14,353,000 | (28.8%) |
Net income (a) | 10,010,000 | 11,153,000 | (10.2%) |
Earnings per share | 0.19 | 0.21 | (9.5%) |
9 months ended 1/22 | 2011 | 2010 | Change |
Sales | $848,239,000 | $868,472,000 | (2.3%) |
Operating income | 14,105,000 | 27,481,000 | (48.7%) |
Net income (a) | 13,739,000 | 18,696,000 | (26.5%) |
Earnings per share | 0.26 | 0.36 | (27.8%) |
(a) Includes income from Continued Dumping and Subsidy Offset Act of $903,000 in 2011 and $4.4 million in 2010. | |||
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La-Z-Boy third quarter profits dip
Feb 16, 2011
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