La-Z-Boy 4Q net income up 6.9%
Larry Thomas -- Furniture Today, February 16, 2003
Monroe, Mich. — La-Z-Boy said net income rose 6.9% in its third quarter but sales were weak in upholstery and case goods.
Upholstery sales, which make up about 75% of total revenues, were essentially flat in the three months ended Jan. 25, while case goods sales were down 13%.
"The quarter was a tough one," La-Z-Boy President Jerry Kiser said in a conference call with analysts, noting the company's higher-end case goods and upholstery were particularly hard hit.
Total sales for the quarter were $510.5 million, a 6.1% drop from last year's third quarter. Net income came to $23.2 million, up from $21.7 million a year ago.
Kiser said margins remained strong during the quarter, but said he wasn't sure that trend could be sustained if the retail environment continues to be weak.
"We don't want to drive top-line growth at the expense of margins, but there comes a point ... when you've got to sell your way out of a situation," he said.
He expects sales for the fourth fiscal quarter to be down "in the mid-single digits" and projected earnings at $1.65 to $1.70 per share for the fiscal year — a drop of about 5 cents per share from earlier projections.
"Business is erratic, choppy and unpredictable," he said. "Consumer confidence is still weak ... and the heightened terrorist alert isn't going to make people more upbeat."
Same-store sales at the 310 dealer-owned La-Z-Boy stores declined 4.4% in the three months ended Dec. 31, he said.
| La-Z-Boy | |||
|---|---|---|---|
| Owns Alexvale, Bauhaus, England, Hammary, Kincaid and Ladd | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 1/25 | 2003 | 2002 | Change |
| (a) Includes a $11.7 million pretax divestiture loss in both periods. (b) Based on average shares outstanding of 56.8 million in the 2003 quarter, 61.1 million in the 2002 quarter, 58.1 million in the 2003 nine months and 61 million in the 2002 nine months. (c) Includes a $59.8 million extraordinary charge, the cumulative effect of an accounting change. |
|||
| Sales | $510,539,000 | $543,547,000 | (6.1%) |
| Operating income | 39,561,000 | 37,358,000 | 5.9% |
| Net income | 23,161,000 | (a)21,663,000 | 6.9% |
| Earnings per share(b) | 0.41 | 0.35 | 17.1% |
| 9 months ended 1/25 | 2003 | 2002 | Change |
| Sales | $1,571,501,000 | $1,557,890,000 | 0.9% |
| Operating income | 119,684,000 | 65,941,000 | 81.5% |
| Net income | (c)11,207,000 | (a)36,885,000 | (69.6%) |
| Earnings per share(b) | 0.19 | 0.60 | (68.3%) |
La-Z-Boy logs $2M profit
08/23/2009La-Z-Boy sales drop 9.2%
08/16/2003La-Z-Boy reports $5.9M profit
11/29/2009La-Z-Boy 4Q income jumps
06/01/2002
