La-Z-Boy Lagging Less: Fool by Numbers

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On Nov. 14, La-Z-Boy (NYSE: LZB) released second-quarter earnings for the period ended Oct. 28.

• Sales rose 1.7%, helped by both an increase in revenues from the upholstery and retail groups and the elimination of supply chain disruptions that were present in the prior year.
• Gross margins rose for the quarter because of a 2.9% increase in sales price and a 2.1% drop in costs.
• The company plans to add seven stores and convert or relocate five stores during the remainder of fiscal 2007.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$440.5	$433.4	1.7%
Net Profit	$2.0	($6.9)	N/A
EPS	$0.04	($0.13)	N/A
Diluted Shares	51.6	51.7	(0%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
Gross Margin	25.4%	20.6%	4.8
Operating Margin	0.9%	(1.8%)	2.8
Net Margin	0.4%	(1.6%)	2.0

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$20.5	$15.0	36.5%
Accounts Rec.	$253.5	$258.5	(1.9%)
Inventory	$237.9	$267.3	(11%)

	Q2 2007	Q2 2006	Change
Accounts Payable	$72.3	$73.4	(1.5%)
Long-Term Debt	$147.8	$194.5	(24%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q2 2007	Q2 2006	Change
Cash From Ops.	($23.0)	($1.0)	N/A
Capital Expenditures	($5.8)	$7.6	N/A
Free Cash Flow	($17.2)	($8.5)	N/A

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Related Companies:

• Furniture Brands International (NYSE: FBN)
• Natuzzi SpA (NYSE: NTZ)
• Stanley Furniture (Nasdaq: STLY)

Related Foolishness:

• Foolish Forecast: La-Z-Boy
• La-Z-Boy Lounging Around
• Stanley Sneezes

La-Z-Boy is an Income Investor selection. Stanley Furniture is a Hidden Gems recommendation. Check out our entire suite of newsletters by clicking here.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.