La-Z-Boy profits decline, but annual sales improve

Firm says restructuring costs hurt bottom line

6/19/2013
BY JON CHAVEZ
BLADE BUSINESS WRITER

MONROE — La-Z-Boy Inc. on Tuesday reported an annual profit of $46.4 million, or 85 cents per share, for fiscal 2013, a decrease of 47 percent from a year ago when the company had a profit of $88 million, or $1.66 a share.

The Michigan-based furniture manufacturer, whose products include the iconic La-Z-Boy recliner, said that despite a drop in profits, its annual sales for the fiscal year grew 8.2 percent to $1.3 billion. A year ago sales were $1.23 billion.

La-Z-Boy said it took a 3-cent-per-share restructuring charge against earnings because of adjustments in its wood-furniture segment, or “casegoods.” But its fiscal results included a 6-cents per share gain related to the sale of investments and a 3-cents-per-share gain mainly because of benefits from foreign and state taxes.

“We are pleased with our results ...,” said Kurt Darrow, La-Z-Boy’s chairman, president, and chief executive officer. “For the year, we increased sales, delivered a significant increase in our consolidated operating income, achieved profitability in our retail segment, strengthened our balance sheet, and reinstated our dividend.”

La-Z-Boy reinstated the dividend in December, paying out 4-cents-per-share for the quarter.

The firm said that among its La-Z-Boy Furniture Galleries store network, sales at stores that have been open at least a year increased 12.7 percent over the fiscal year.

La-Z-Boy’s retail segment became profitable in fiscal 2013, posting an operating income of $4.1 million, compared with an operating loss of $7.8 million in fiscal 2012.

For the fiscal fourth quarter, La-Z-Boy had net profits of $18.3 million, or 33 cents per share, a drop of 7 percent compared to a year ago. Its quarterly sales were $359.5 million, up 10 percent compared to the fourth quarter of fiscal 2012.