La-Z-Boy says profits up 153% in 2nd quarter

Monroe-based furniture maker had revenue of $366.4M

La-Z-Boy CEO receives 2013 service award
La-Z-Boy Inc. Chief Executive Kurt L. Darrow has been named the recipient of the 2013 distinguished service award presented by the American Home Furnishings Alliance.

The award is based on a recipient's contributions to the furniture industry, to the alliance, and to their local community. He received the award Friday at the alliance's annual meeting in St. Thomas, U.S. Virgin Islands. Mr. Darrow, who has led La-Z-Boy the last eight years, is a board and executive committee member of the nonprofit Business Leaders for Michigan organization, and vice chairman of the board of Mercy Memorial Hospital in Monroe.

La-Z-Boy also announced that Mr. Darrow was named recently as a board member of CMS Energy, and its subsidiary, Consumers Energy, of Jackson, Mich.

MONROE — Furniture maker La-Z-Boy Inc. on Tuesday said that profits for the second quarter of fiscal 2014 rose 153 percent to $16.7 million, or 31 cents a share, up from $6.6 million or 12 cents a share for the same period a year ago.

The company, which makes the La-Z-Boy recliner chair, said its quarterly revenues rose 13.7 percent to $366.4 million from $322.3 million from the second quarter of fiscal 2013.

La-Z-Boy’s quarterly performance easily beat Wall Street estimates. Analysts had expected earnings of 26 cents a share on revenues of $349.4 million.

Although the company announced its results after the markets closed, its shares, which are traded on the New York Stock Exchange, finished up 6 cents Tuesday to close at $24.42 a share.

La-Z-Boy attributed its strong quarterly performance to improvements in its upholstery and retail segments.

Upholstery segment sales increased 14.2 percent to $296.2 million from $259.5 million a year earlier, with the segment’s operating margin rising to 11 percent from 8.4 percent a year ago.

In retail, sales were $73.4 million, up 19 percent from $61.2 million a year earlier. Its retail operating margin was 4.4 percent for the quarter, compared with just 0.9 percent a year ago.

“Our performance for the quarter reflects the successful execution of our sales, merchandising, and integrated retail strategies as well as the efficiencies with which we are running our operations,” said Kurt Darrow, La-Z-Boy chairman, president, and chief executive officer. “We believe our positive sales trajectory is indicative of continued market share gains, and with the strength of the La-Z-Boy brand, our vast distribution network, and our lean manufacturing structure, we are well positioned for future profitable growth.”

In announcing its earnings, La-Z-Boy added that it was increasing its quarterly dividend to 6 cents a share, up from a previous 4 cents a share. The fiscal second quarter dividend will be payable Dec. 10 to shareholders of record as of Nov. 29.