La-Z-Boy Incorporated, US based furniture manufacturer, reported 1.8 per cent growth in sales to $475.9 million in Q3 FY20 compared to same quarter prior year. For year-over-year (YoY) basis net sales increased from $1,291.7 million in FY19 to $1,336.7 million. Sales in Q3 that ended on January 25, 2020, was led by growth in the retail segment.
Written same-store sales in Q3 FY20 for the La-Z-Boy furniture galleries network increased 10.5 per cent. Delivered same-store sales for the company-owned retail segment increased 5.5 per cent.
For the quarter, sales in the company's upholstery segment increased 0.7 per cent to $336.7 million. Operating margin reportedly improved as supply chain inflationary pressures were more than offset by efficiencies and lower commodity costs.
In the sasegoods segment, sales increased 0.2 per cent to $28.1 million and operating margin was 9.0 per cent compared with 11.9 per cent in the prior-year period, reflecting the impact of tariffs on the occasional table business and increased freight costs, company reported.
Sales in the retail segment increased 5.1 per cent to $167.5 million in Q3 FY20.
In Q3 FY20, the sales for Joybird (La-z-Boy acquired company), increased 17.9 per cent to $21.9 million. Joybird reportedly continued to improve its gross margin, fuelled by supply chain synergies. Joybird reduced its loss for the quarter on a YoY and sequential basis. The company is continuing to make improvements across the business model with the objective to balance investments in growth with bottom-line performance.
Fibre2Fashion News Desk (JL)