Revenue during the quarter went up marginally by 1.56 percent to $389.99 million from $384.01 million in the previous year period. Gross margin for the quarter expanded 149 basis points over the previous year period to 40.03 percent. Total expenses were 91.57 percent of quarterly revenues, up from 90.94 percent for the same period last year. That has resulted in a contraction of 63 basis points in operating margin to 8.43 percent.

Operating income for the quarter was $32.88 million, compared with $34.78 million in the previous year period.

Kurt L. Darrow, chairman, president and chief executive officer, of La-Z-Boy, said, "The retail environment for home furnishings remains challenging. Against that backdrop, however, we delivered increases in sales and earnings per share for the quarter. As we move forward, we are continuing to adjust some of our marketing and merchandising strategies to address the current environment. And, as we seek to more fully populate the North American landscape with La-Z-Boy Furniture Galleries® stores through our 4-4-5 initiative, we expect the volume associated with the store build-out combined with supply chain initiatives will further improve the efficiencies of our operations and drive profitability. Additionally, our recent acquisitions will allow us to capitalize on our integrated retail strategy which we believe will continue to be a key component in the company’s growth as we work to create and return value to shareholders."

The company has spent $58.03 million cash to meet investing activities during the nine month period as against cash outgo of $27.81 million in the last year period. It has incurred net capital expenditure of $15.26 million on net basis during the nine month period, down 11.91 percent or $2.06 million from year ago period.

The company has spent $35.12 million cash to carry out financing activities during the nine month period as against cash outgo of $41.62 million in the last year period.

Cash and cash equivalents stood at $110.32 million as on Jan. 28, 2017, up 12.92 percent or $12.62 million from $97.70 million on Jan. 23, 2016.

Working capital declines
La-Z-Boy Incorporated has witnessed a decline in the working capital over the last year. It stood at $308.02 million as at Jan. 28, 2017, down 5.50 percent or $17.94 million from $325.95 million on Jan. 23, 2016. Current ratio was at 2.62 as on Jan. 28, 2017, down from 3.10 on Jan. 23, 2016.

Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 88 days for the last year period. Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 38 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 18 for the same period last year.