La-Z-Boy 4Q sales down 9.4%
By Larry Thomas -- Furniture Today, June 24, 2007
Monroe, Mich. — La-Z-Boy said fourth-quarter sales were 9.4% below last year's fourth fiscal quarter, but the company did reverse a net loss and recorded a profit from continuing operations.
The company said the quarter was plagued by difficult business conditions throughout its wholesale and retail units, so the focus was on keeping costs in line with lower sales.
"Despite significantly lower volume in both of our wholesale businesses, we maintained our operating margins this quarter," said Kurt Darrow, president and CEO. "We continue to operate in an environment marked by extremely difficult retail conditions across the industry."
Sales for the quarter ended April 28 were $406.9 million. Income from continuing operations came to $8.4 million or 16 cents per share, compared with a loss of $12.4 million or 24 cents per share in last year's fourth quarter.
Net income, including figures from several businesses La-Z-Boy has sold or plans to sell, totaled $7.7 million, compared with a net loss of $10.3 million a year earlier.
The latest quarter's figures include restructuring charges of 8 cents per share and a one-time gain of 14 cents per share from the sale of various properties.
The company said upholstery sales slid 11.2% during the quarter, while case goods sales were off 13.2%. Sales from company-owned La-Z-Boy Galleries stores were even with last year's fourth quarter.
For the fiscal year ended April 28, total sales dropped 4.6% to $1.62 billion. Upholstery sales were off 5.7%, case goods sales fell 10.2% and sales from the company-owned stores were up 3.2% from fiscal 2006.
La-Z-Boy reported income from continuing operations of $19.8 million or 38 cents per share, compared with a loss of $5.6 million or 11 cents per share the previous fiscal year.
Net income for the year was $4.1 million, reversing a net loss of $3 million the previous year.
The full-year figures included restructuring charges of 13 cents per share, a one-time gain of 17 cents per share from property sales, and a one-time gain of 4 cents per share ($3.4 million) related to antidumping duties on Chinese-made bedroom furniture.
Looking ahead, Darrow said that "in a move consistent with recent trends among other public companies," La-Z-Boy will no longer provide quarterly earnings projections, just yearly ones. For fiscal 2008, he said the company expects sales to be down 5% to 10% with earnings per share in the range of 45 cents to 60 cents. That compares with 38 cents from continuing operations in the fiscal year just ended.
He said the estimate doesn't include possible restructuring charges, money from the anti-dumping case, or potential gains or losses on asset sales.
| La-Z-Boy | |||
|---|---|---|---|
| Owns Alexvale, American Drew, American of Martinsville, Bauhaus, Clayton Marcus, England, Hammary, Kincaid, Lea, Pennsylvania House and Sam Moore | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 4/28 | 2007 | 2006 | Change |
| (a) Includes pretax restructuring charges of $2.5 million in the 2007 quarter and $7.7 million in the 2007 year, and a pretax charge for writedown of intangibles of $22.7 million in the 2006 quarter and year. Also includes net losses from discontinued operations of $724,000 in the 2007 quarter and $15.6 million in the 2007 year, and net income from discontinued operations of $2.1 million in the 2006 quarter and $2.5 million in the 2006 year. |
|||
| Sales | $406,949,000 | $449,376,000 | (9.4%) |
| Operating income | 19,070,000 | 19,250,000 | (0.9%) |
| Net income (a) | 7,711,000 | (10,270,000) | — |
| Earnings per share | 0.15 | (0.20) | — |
| Year ended 4/28 | 2007 | 2006 | Change |
| Sales | $1,617,302,000 | $1,695,012,000 | (4.6%) |
| Operating income | 42,988,000 | 45,714,000 | (6.0%) |
| Net income (a) | 4,139,000 | (3,041,000) | — |
| Earnings per share | 0.08 | (0.06) | — |
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La-Z-Boy sales fall 9.4%, but company posts a profit
Jun 20, 2007
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