La-Z-Boy Guides Lower

The second quarter beats estimates, though.
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La-Z-Boy (LZB) - Get Report beat fiscal second-quarter targets but guided lower for the third quarter.

The Monroe, Mich., chair company made $2 million, or 4 cents a share, for the quarter ended Oct. 28, reversing the year-ago loss of $6.4 million, or 12 cents a share. Revenue rose 2% from a year ago to $441 million.

Analysts were looking for a 2-cent profit on sales of $434 million.

"We were challenged with sales volume this quarter which was reflective of recent trends in furniture demand throughout the broader industry," the company said. "We continue, however, to be encouraged by our ability to improve wholesale margins on essentially flat volume during what continues to be a difficult period."

System-wide, for the third calendar quarter, including company-owned and independent-licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were down 3.2% and total sales, which includes new stores, decreased 0.8%.

La-Z-Boy guided to a third-quarter profit of 6 to 10 cents a share. Revenue should decline in the mid single digits from last year's $477 million, the company said.

Analysts surveyed by Thomson Financial were looking for an 18-cent profit on sales of $483 million.

Shares rose a penny late Tuesday to $13.20.