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Segment Information
 9 Months Ended
Jan. 28, 2017
Segment Information  
Segment Information

 

Note 9: Segment Information

 

Our reportable operating segments are the Upholstery segment, the Casegoods segment, and the Retail segment.

 

Upholstery Segment. The Upholstery segment consists primarily of two operating units: La-Z-Boy and England. The Upholstery segment also includes our international businesses, including our wholesale business from our recently acquired license to sell the La-Z-Boy brand in the United Kingdom and Ireland. This segment manufactures and imports upholstered furniture. Upholstered furniture includes recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas. The Upholstery segment sells directly to La-Z-Boy Furniture Galleries® stores, operators of La-Z-Boy Comfort Studio® locations and England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

 

Casegoods Segment. The Casegoods segment consists of three brands: American Drew, Hammary, and Kincaid. This segment sells imported wood furniture to furniture retailers. Casegoods product includes bedroom, dining room, entertainment centers, occasional pieces and some manufactured coordinated upholstered furniture. The Casegoods segment sells directly to major dealers, as well as La-Z-Boy Furniture Galleries® stores, and a wide cross-section of other independent retailers.

 

Retail Segment. The Retail segment consists of 142 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells upholstered furniture, and some casegoods and other accessories, to end consumers through these stores.

 

 

 

Quarter Ended

 

Nine Months Ended

 

(Unaudited, amounts in thousands)

 

1/28/17

 

1/23/16

 

1/28/17

 

1/23/16

 

Sales

 

 

 

 

 

 

 

 

 

Upholstery segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

$
246,650

 

$
250,740

 

$
715,357

 

$
743,304

 

Intersegment sales

 
56,273

 
51,652

 
150,771

 
137,581

 

 

 

 

 

 

 

 

 

 

 

Upholstery segment sales

 
302,923

 
302,392

 
866,128

 
880,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casegoods segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 
20,499

 
22,528

 
64,651

 
69,517

 

Intersegment sales

 
2,760

 
2,091

 
9,534

 
6,714

 

 

 

 

 

 

 

 

 

 

 

Casegoods segment sales

 
23,259

 
24,619

 
74,185

 
76,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail segment sales

 
122,121

 
110,160

 
325,206

 
293,291

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other:

 

 

 

 

 

 

 

 

 

Sales to external customers

 
722

 
586

 
2,140

 
2,216

 

Intersegment sales

 
1,978

 
1,328

 
4,751

 
2,594

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other sales

 
2,700

 
1,914

 
6,891

 
4,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eliminations

 
(61,011

)
(55,071

)
(165,056

)
(146,889

)

 

 

 

 

 

 

 

 

 

 

Consolidated sales

 

$
389,992

 

$
384,014

 

$
1,107,354

 

$
1,108,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

 

 

Upholstery segment

 

$
34,979

 

$
33,022

 

$
102,318

 

$
94,656

 

Casegoods segment

 
1,593

 
1,768

 
6,587

 
6,092

 

Retail segment

 
6,325

 
8,834

 
11,515

 
19,279

 

Corporate and Other

 
(10,015

)
(8,840

)
(32,602

)
(31,883

)

 

 

 

 

 

 

 

 

 

 

Consolidated operating income

 
32,882

 
34,784

 
87,818

 
88,144

 

Interest expense

 
562

 
120

 
794

 
365

 

Interest income

 
241

 
204

 
679

 
573

 

Income from Continued Dumping and Subsidy Offset Act, net

 
273

 
102

 
273

 
102

 

Other income (expense), net

 
638

 
(93

)
287

 
2,387

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$
33,472

 

$
34,877

 

$
88,263

 

$
90,841