The Monroe, Mich., chair company made $1 million, or 2 cents a share, from continuing operations for the quarter ended July 29. That's down from the year-ago $2.5 million, or 5 cents a share. Sales fell 2.3% from a year ago to $419 million.
Analysts surveyed by Thomson Financial were looking for a 3-cent profit on sales of $465 million.
"We are encouraged by our ability to generate improved operating margins at the wholesale level on relatively flat volume during what is our historically slowest quarter due to seasonality factors," said CEO Kurt Darrow.
Systemwide, including company-owned and independent-licensed stores, same-store written sales dropped 5.5% and total sales fell 2.7%.
For the second quarter, La-Z-Boy expects to make 11 cents to 15 cents a share on a mid-single-digit revenue rise from last year's $433 million. That would put revenue in the range of $455 million.
Analysts were looking for a 15-cent profit on sales of $483 million.