Improved operating margins in its upholstery and retail segments helped drive a double-digit earnings increase in the second fiscal quarter at La-Z-Boy.

The company said net income rose 16.6% to $19.5 million or 37 cents per share in the quarter ended Oct. 26. In the same quarter last year, net income was $16.7 million or 31 cents per share, including a one-time gain of 1 cent per share from the reversal of a deferred tax valuation allowance.

Net sales in the most recent quarter totaled $365.6 million, an increase of 3.8% from $352.3 million in last year’s second fiscal quarter.

La-Z-Boy said upholstery sales rose 3.6% to $297.3 million, while case goods sales, which consist of the American Drew, Hammary and Kincaid brands, fell 0.2% to $28.9 million.

The upholstery segment recorded an 11% operating margin, while La-Z-Boy’s company-owned retail stores had a 4.4% operating margin.

Delivered sales in the retail segment totaled $84.6 million, an increase of 15.3% from the same quarter last year.

“Overall, we are pleased with the results for the quarter,” said Kurt Darrow, chairman, president and CEO. “We increased sales and posted an 8.3% consolidated operating margin for the period. Additionally, we experienced an increase in same-store written sales for the La-Z-Boy Furniture Galleries network, generated strong operating cash flow, raised our quarterly dividend and purchased $13.6 million of our stock.”

During the quarter, five company-owned and three licensed retail stores were opened. In addition, licensees remodeled five stores and relocated one store during the quarter.

As of Oct. 26, 107 of the 325 La-Z-Boy Furniture Galleries stores were company-owned. In early November, shortly after the quarter ended, the company purchased one store from a licensee.

Darrow said 30 to 35 store projects, including openings, remodels and relocations, are on tap for the current fiscal year. The projects include 15 stores that will be converted to the company’s new design concept.

For the six months ended Oct. 26, sales totaled $692.6 million, up from $657.8 million in the first half of the previous fiscal year.

Six-month net income totaled $32.6 million or 62 cents per share. That was up from $26.3 million or 49 cents per share in the comparable period.

“As we move into the back half of fiscal 2015, we believe we are well positioned to drive growth across our various product categories and dealer organization while benefitting from the efficiencies of our manufacturing platform and the blended margin inherent in our integrated retail model,” said Darrow.

The new quarterly dividend of 8 cents per share — a hike of 2 cents, or 33% — is payable Dec. 10 to stockholders of record Nov. 28.