MONROE, Mich., Aug. 21, 2012 /PRNewswire/ -- La-Z-Boy Incorporated (NYSE: LZB) today reported its operating results for the fiscal 2013 first quarter ended July 28, 2012.
Fiscal 2013 first-quarter highlights: •Sales for the first quarter increased 7.6% compared with the fiscal 2012 first quarter; •Same-store written sales for the La-Z-Boy Furniture Galleries® store network increased 9.2% for the first quarter; •The upholstery segment's sales increased 9.5%, and its operating margin was 6.5% versus 5.1% in last year's first quarter; •Delivered sales in the company-owned retail segment increased 17%, and the segment's operating margin improved to (3.5%) from (6.9%) in last year's first quarter; •Consolidated operating income was $7.6 million compared with $3.5 million in the fiscal 2012 first quarter; and •Diluted earnings per share attributable to La-Z-Boy Incorporated were $0.08 versus $0.85 per share in last year's first quarter, of which $0.81 per share was attributable to the reduction of certain valuation reserves against the company's deferred tax assets.
Net sales for the fiscal 2013 first quarter were $301.5 million, up 7.6% compared with the prior year's first quarter. The company reported net income attributable to La-Z-Boy Incorporated of $4.4 million, or $0.08 per diluted share versus $45.5 million, or $0.85 per diluted share in the prior-year period, of which $43.4 million, or $0.81 per share was attributable to a reduction of certain valuation reserves against the company's deferred tax assets.
Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy, said, "We are pleased with our results for the quarter, particularly given the seasonal impact the summer period has on our industry. As we expected, the pace of delivered sales in our upholstery and retail segments increased during the period as the strong written orders from the past several months flowed through to delivered sales this quarter. In addition to increasing sales in all three business segments for the quarter and posting 9.2% same-store-sales growth for our network of La-Z-Boy Furniture Galleries® stores, we more than doubled our operating income. Our results reflect our ability to leverage a lean cost structure and, as we move into what is typically a stronger fall selling season, we expect to continue to capitalize on the strength of our brand and marketing initiative as well as our vast network of proprietary distribution to drive growth, retail profitability and positive conversion on additional volume."
Wholesale Segments For the fiscal 2013 first quarter, sales in the company's upholstery segment increased to $238.2 million from $217.5 million in the prior year's first quarter. The upholstery segment's operating margin for the quarter was 6.5% compared with 5.1% in last year's first quarter. In the casegoods segment, sales for the fiscal 2013 first quarter were $34.6 million, up 1.4% from $34.1 million in the fiscal 2012 first quarter, and the operating margin for the segment improved to 3.7% from 1.6% in last year's first quarter.
Darrow commented, "We remain pleased with the success of our brand platform marketing initiative, which we believe is driving a more qualified consumer to our stores and