La-Z-Boy reports smaller 1Q loss
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MONROE, Mich.—Furniture maker La-Z-Boy Inc. said Tuesday that its first-quarter loss narrowed, beating Wall Street forecasts as it reduced costs.
For the three-months ending July 26, the company lost $8.5 million, or 17 cents per share. That compares with a year-ago loss of $8.7 million, or 17 cents per share.
Excluding a 9 cent-per-share restructuring charge related to the closure of operations in the U.K. and Utah, and a write down of 3 cents per share to lower the value of its U.K. operation on its books, the company had a loss of 5 cents per share.
Revenue fell 6.6 percent to $321.7 million, down from $344.4 million during the same period last year.
Analysts surveyed by Thomson Reuters predicted the Monroe-based company would lose 6 cents per share on revenue of $317 million.
Total cost of sales declined to $240.9 million from $261.7 million a year earlier. Selling, general and administrative expenses fell to $91.8 million from $94.5 million.
"In what remains a difficult environment for the home furnishings industry, due to significant macroeconomic pressures, we continue to be diligent in improving the efficiencies of our operations," La-Z-Boy president and chief executive Kurt L. Darrow said in a statement. "While we anticipate it being some time before we see an across-the-board industry improvement, we believe our balance sheet and the strength of our business model will carry us through this period."
The company said Tuesday it expects the second half of its fiscal year to be "operationally stronger" than the first half, but did not provide specific projections.
"The overall macroeconomic environment continues to be challenging," Darrow said. "Increased oil prices, higher interest rates and a depressed housing market, combined with low consumer confidence levels, are having an effect on the home furnishings industry across the board."
La-Z-Boy, known for its iconic recliner, operates more than 300 furniture galleries, along with hundreds of comfort studios and in-store galleries.
Its shares fell 30 cents, or 3.9 percent, to $7.41 in trading Tuesday.
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