La-Z-Boy Reports Fiscal 2008 Third-Quarter Results Tuesday February 19, 5:01 pm ET
MONROE, Mich., Feb. 19 /PRNewswire-FirstCall/ -- La-Z-Boy Incorporated (NYSE: LZB - News) today reported its operating results for the fiscal third quarter ended January 26, 2008. Net sales for the period were $373.1 million, down 7.8% compared with the prior year's third quarter. The company reported net income of $9.5 million compared with a loss of $7.8 million for the same period last year. Earnings per share for the fiscal third quarter were $0.18, which included income per share of $0.09 after tax related to anti-dumping duties received on bedroom furniture imported from China. In last year's third quarter, the company posted a per-share loss of $0.15, which included an after-tax $0.29 per-share loss from discontinued operations, most of which was attributable to the non-cash write-down of intangible assets of businesses held for sale and income per share of $0.04 after tax related to anti-dumping duties. Income from continuing operations in the fiscal 2008 third quarter was $9.1 million compared with $6.9 million in the fiscal 2007 third quarter.
Kurt L. Darrow, La-Z-Boy's President and Chief Executive Officer, said: "We continue to go through a difficult macroeconomic period which is impacting the housing and home furnishings markets. In this environment, we have worked to sustain the performance of our wholesale operations through various cost- reduction programs. Given the higher fixed-cost nature of the retail business, the performance of our company-owned retail segment has been particularly impacted by external conditions, with the progress made on the cost side overshadowed by the effect of lower volumes. We continue to work to position La-Z-Boy to emerge from this difficult period as a stronger and leaner manufacturer and distributor with a solid integrated retail platform."
For the fiscal 2008 third quarter, sales in the company's upholstery segment decreased 3.8% to $282.5 million compared with $293.7 million in the prior year's third quarter. The segment's operating margin was 6.9%. Darrow stated, "Despite lower volume, we continue to maintain our operating margins in the wholesale upholstery business. In addition to lowering our cost structure with projects such as our plant cellular conversion across our branded facilities, we are driving business through creative merchandising and selective promotions."
For the quarter, the La-Z-Boy Furniture Galleries® store system, which includes both company-owned and independent-licensed stores, opened three new stores, relocated and/or remodeled six and closed five, bringing the total store count to 336, of which 213 are in the New Generation format. For the fiscal fourth quarter 2008, the network plans to open four New Generation format La-Z-Boy Furniture Galleries® stores (one will be a new store and three will be store remodels or relocations) and will close one.
System-wide, for the fourth calendar quarter ended December 31, 2007, including company-owned and independent-licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were down 6.0%. Total written sales, which include new stores, were down 4.8%.
La-Z-Boy Declares Quarterly Dividend Tuesday February 19, 4:26 pm ET
MONROE, Mich., Feb. 19 /PRNewswire-FirstCall/ -- Directors of La-Z-Boy Incorporated (NYSE: LZB - News) declared a quarterly cash dividend on the company's common stock of $0.04 per share. The dividend is payable March 10, 2008 to shareholders of record as of February 29, 2008.
The Board's decision to decrease the dividend from $0.12 to $0.04 reflects current industry conditions and its commitment to prudent cash management.