La-Z-Boy Incorporated reported results for the fiscal 2016 second quarter ended October 24, 2015. Sales were $382.9 million, up 4.7% compared with the prior year's second quarter.
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The company reported income from continuing operations attributable to La-Z-Boy Incorporated of $21.0 million, or $0.41 per diluted share, versus $19.2 million, or $0.36 per diluted share, in last year's second quarter.
For the fiscal 2016 second quarter, sales in the company's upholstery segment increased 2.9% to $305.8 million versus the prior year's second quarter. In the casegoods segment, sales for the fiscal 2016 second quarter were $28.2 million, down 2.3% from last year's second quarter.
For the fiscal 2016 second quarter, sales in the company's retail segment increased 14.1% to $96.5 million versus the prior year's second quarter. On the core 96 stores included in last year's comparable quarter, delivered sales for the segment increased 1.3%.
System-wide, for the second quarter of fiscal 2016, including company-owned and independent-licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were up 3.6% versus last year's second quarter.
Same-store written sales for the fiscal 2016 year-to-date period (May through October) were up 4.2%.
For the second quarter, total written sales, which include new and closed stores, increased 6.2% compared with the fiscal 2015 comparable period. At the end of the second quarter, the La-Z-Boy Furniture Galleries® store system was composed of 330 stand-alone stores, with 75 in the new concept design format.
During the quarter, the company generated $20.2 million in cash from operating activities. La-Z-Boy ended the quarter with $74.6 million in cash and cash equivalents, $31.8 million in investments to enhance returns on cash, and $9.0 million in restricted cash.
During the quarter, the company invested $19.2 million acquiring 10 La-Z-Boy Furniture Galleries stores.
The company also had $7.4 million in capital expenditures, paid $4.1 million in dividends, and spent $9.3 million purchasing 0.3 million shares of stock in the open market under its existing authorized share purchase program, with remaining authorization to purchase 5.0 million shares.
The board of directors increased the company's regular quarterly dividend to shareholders by 25% to $0.10 per share. The dividend will be paid on December 10, 2015, to shareholders of record as of November 30, 2015. ■