MONROE, Mich.-Fourth-quarter net income for La-Z-Boy dropped 6.6 percent to $18.3 million, while for the fiscal year net income totaled $46.4 million, down 47.3 percent.
The bottom-line results for both periods reflected income received in the prior fourth quarter and fiscal year from the Continued Dumping and Subsidy Act, which mandates that U.S. companies be given funds from raised duties on what are deemed to be unfairly priced competitive products imported from other countries. In addition, La-Z-Boy realized an income tax benefit from the previous fiscal year of $22.1 million, as opposed to income tax expenses for this fiscal year.
Net sales for the quarter, which ended on April 27, were up 9.8 percent to $359.5 million, bringing net sales for the year to $1.3 billion, up 8.9 percent. The top line got a boost from the company’s La-Z-Boy Furniture Galleries, which posted an 11.2 percent same-store sales increase for the quarter and a 12.7 percent gain in same-store sales for the year. Strong results also emerged from the company’s upholstery and casegoods segments for both periods.
Fourth-quarter gross margin rose 224 basis points to 33.8 percent. Selling, general and administrative expenses for the period increased 10.3 percent in dollars and 13 basis points as a percentage of sales, to 26.5 percent.
Kurt Darrow, La-Z-Boy’s chairman, president and CEO, said the results for both the quarter and the year “demonstrate our successful execution and effectiveness of our strategic plan to operate as an efficient integrated retailer….We believe many growth opportunities exist to maximize our business model, making for an exciting future in which we plan to leverage the solid strategic and operating platforms we have established over the past several years.”