, as expected, swung to a second-quarter loss, hurt by restructuring charges, lower sales and supply issues from the recent hurricanes.
Still, the furniture maker did offer a brighter profit picture for the coming quarter than analysts' had been expecting.
For the quarter ended Oct. 29, La-Z-Boy had a loss of $6.4 million, or 12 cents a share, compared with a year-earlier profit of $8.9 million, or 15 cents a share. The latest quarter's results included a charge of 10 cents a share related to the closure of the company's Waterloo, Ontario, upholstery facility.
Analysts polled by Thomson First Call expected the company to post a loss of 12 cents a share. First Call estimates typically exclude restructuring charges.
La-Z-Boy's sales fell nearly 13% to $454.6 million from $520.8 million a year ago. Analysts, on average, predicted sales of $453 million.
"Our results for the second quarter were impacted by a number of factors, most notably the supply chain issues resulting from Hurricanes Katrina and Rita, the restructuring charge and a softer-than-expected retail environment," said President and CEO Kurt Darrow in a statement.
La-Z-Boy's Newton, Miss., facilities were affected by both Katrina and Rita. In addition, the company said the hurricanes caused an industry-wide shortage of polyurethane foam, hurting production and increasing raw material costs. The company had warned in October that it would "significantly" miss estimates at the time because of the foam shortage.
The company noted that it passed through foam price increases in the form of a surcharge and, as of this week, was able to obtain 100% of its foam requirements.
For the third quarter, La-Z-Boy expects sales to be flat with the $507 million reported a year earlier. Analysts, on average, project sales of $488 million. La-Z-Boy sees third-quarter earnings of 13 cents to 17 cents a share, including 1 cent a share in restructuring charges. The outlook tops Wall Street's projection for earnings of 11 cents a share.
"Although we continue to make steady progress with our cost structure and are confident we have a solid and relevant business model in place in each of our three segments, we remain concerned about the macro economic environment as well as consumer confidence," Darrow said.
La-Z-Boy closed Tuesday at $11.61, down 59 cents, or 4.8%.