Acquisitions boost La-Z-Boy sales 13%

Breana Noble
The Detroit News
An exterior photograph of a La-Z-Boy store in Troy, February 19, 2019.

La-Z-Boy Inc. reported Tuesday a 13 percent increase in sales year-over-year for the third quarter of its 2019 fiscal year.

The Monroe-based furniture manufacturer benefited from the acquisition of e-commerce retailer Joybird and 10 La-Z-Boy Furniture Galleries stores in Arizona and Massachusetts from the previous quarter, translating to a 137 percent increase in net income of $29 million on $468 million in sales.

Changes to employee benefits and a legal settlement during last year's third quarter also contributed to the increases. Earnings per share was 61 cents, up 144 percent.

La-Z-Boy saw sales increase 26.7 percent in its retail segment to $159 million. Acquisitions and same-store sales rose 6.7 percent, helping to double the division's operating income.

"Within the stores, our retail team is professionally executing our strategies while consumers are responding positively to our product and service offering," La-Z-Boy CEO Kurt Darrow said in a statement. "These efforts led to the base stores performing at a high level in what is typically our largest quarter for Retail, while the recently acquired Arizona stores also delivered very strong results. Additionally, we remain excited by the potential of Joybird which continues to exhibit fast-paced growth."

The company's upholstery segment increased 4.2 percent in sales to $334 million, driven by changes in price and products, according to a news release. Meanwhile, its casegoods segment grew 3.1 percent to $28 million in sales with increased floor space at retail partners.

Darrow added that the quarter's generation of $45.4 million in cash that ended the quarter with $101.6 million in cash and cash equivalents position the company to make further investments and grow the company.

Earnings were released after Tuesday's stock market closed. The company's shares for the day closed up 2.3 percent. The manufacturer's stock is down less than 1 percent over the past year.