The global leader on residential furniture, La-Z-Boy Incorporated (NYSE: LZB), announced positive operational performance for the second quarter of fiscal year 2021, ended Octobers 24, 2020.
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Consolidated revenues rose 2.7 percent to $459.1 million in the second quarter of fiscal2021, with high demand for all operating firms.
Same-store sales rose 34 percent for the second quarter of fiscal 2021, compared to the same time last year for the entire La-Z-Boy Furniture Galleries network.
Delivered revenue in the wholesale division of the business declined 2 percent to $343.0 million for the year. A large growth in demand has resulted in a record backlog. The company continues to expand production capacity in order to fulfil requirements, but a temporary supply glut of polyurethane foam has limited unit volume. For the wholesale sector, the operating margin was 12.2% compared with 10.6% for the previous year, owing to stringent limits on the expense and a reduction in marketing spending.
In the second quarter of fiscal 2021, the retail division delivered revenues grew 9.3 percent to $162.3 million. Written same-store sales grew 36 percent in the quarter for the company-owned La-Z-Boy Furniture Galleries outlets, demonstrating solid traffic patterns and demand as well as continuing outstanding execution at the store level, including an improvement in conversion and average ticket powered by increased sales of units and design.
During the 2nd quarter, the firm completed the purchase of six La-Z-Boy Furniture Galleries stores in Seattle, with an annual selling volume of about $30 million in calendar 2019, and one warehouse. The purchase of the six stores is projected to contribute about $15 million in additional revenue annually to the company on a combined basis, based on their calendar 2019 sales, as the company is currently tracking a portion of the Seattle-based store volume in its Wholesale division. The Seattle stores contributed $3.5 million in revenue to the retail division for the second quarter.
