Despite a slight decline in its sales and net income for the second quarter, La-Z-Boy Inc. officials remain positive heading into the second half of the fiscal year.

Sales for the fiscal 2017 second quarter, ended Oct. 29, 2016, were $376.6 million, down 1.6% compared to the previous year period. La-Z-Boy Inc.’s net income for the quarter was $20.8 million, or 42 cents per diluted share, versus $21 million, or 41 cents per share, in the 2016 period.

“While the consumer environment experience weaker demand during the summer and early fall, macroeconomic indicators that generally bode well for discretionary spending and home furnishings remain positive,” said Kurt L. Darrow, chairman, president and CEO, in a statement. “With that as a backdrop, our advertising, merchandising and promotional plans remain intact as we strategically position the company to capitalize on what is typically a strong holiday selling season.”

Darrow also noted that the company is making investments to drive long-term growth and profitability, including the purchase of nine La-Z-Boy Furniture galleries stores from an independent dealer. The company has also signed an agreement to acquire the license for the La-Z-Boy brand in the U.K. and Ireland, with plans to close the deal in the third quarter.

For the fiscal 2017 second quarter, sales in the company’s upholstery segment decreased 3.3% to $295.8 million from last year’s second quarter. Sales for the case goods segment were $25.9 million, down 8.3% from last year.

In the company’s retail segment, sales in the second quarter increased 11.3% to $107.4 million. On the core 111 stores included in the 2016 second quarter, sales for the segment decreased 5.5%.

“Throughout fiscal 2017, we plan to execute approximately 27 projects, including new stores, remodels and relations, resulting in 11 net new stores,” Darrow said in the statement. “During the second quarter, the network opened three new stores, remodeled one store and closed two stores.”

(Source: Furniture Today)