La-Z-Boy Incorporated (NYSE:LZB) reported stronger-than-expected results for its second quarter on Tuesday.
The Monroe, Michigan-based furniture giant reported consolidated sales increased 2.7% to $459.1 million, while written same-store sales for the entire La-Z-Boy Furniture Galleries network increased 34%
Consolidated operating income was $47.9 million versus $29.6 million, an increase of 62%
Net income attributable to La-Z-Boy Incorporated per diluted share was $0.75 versus $0.48
The company boasted a strong cash generation, with fiscal year-to-date cash from operating activities of $195.7 million. Cash was $353.4 million at quarter end after full repayment of $50 million outstanding balance on credit line
Said CEO Kurt Darrow, "Demand across all La-Z-Boy Incorporated businesses is at record levels as consumers continue to allocate more discretionary spending to home furnishings. Orders are fueling an unprecedented backlog and our supply chain team is doing a great job to continually increase weekly production to service customers and drive increased delivered sales.
"For the quarter, we produced a double-digit consolidated operating margin, with all operating companies posting excellent results, including Joybird which turned a profit for the first time."
La-Z-Boy also added additional manufacturing cells at its U.S.-based upholstery manufacturing facilities as well as additional weekend shifts
The company also temporarily re-activated a portion of its Newton, Mississippi assembly plant. Added manufacturing cells at its Cut-and-Sew Center in Mexico
LZB also leased a 200,000-square-foot upholstery plant south of Yuma, Arizona, in San Luis Rio Colorado, Mexico, which is expected to start production in December with full ramp up extending over the first half of the new calendar year
LZB shares sprang up $2.78, or 7.3%, to $41.11.
