La-Z-Boy reaps benefits of moving production abroad
20/08/2014
Sales in the upholstery segment increased 6.8% to $262.9 million from $246.1 million in the prior year's first quarter.
CEO Kurt Darrow said: “We continued to invest in our business with incremental spending on marketing, technology and the opening of new stores, to fuel long-term profitable growth.
"As we began transitioning the remaining Kincaid and American Drew bedroom product lines overseas, we were successful in reducing our inventory of the domestic groups that we discontinued as part of the restructuring.
“As announced last quarter, we plan to cease production at the Hudson, North Carolina plant in the fall and will become a pure importer of casegoods. Additionally, we are about halfway through our product refresh in the segment, where we are introducing more transitional furniture groups to appeal to a wider consumer base, and expect the various changes in this business will improve its performance.”
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