swung to a first-quarter profit but warned of weak second-quarter sales.
The Monroe, Mich., recliner maker made $3.2 million, or 6 cents a share, for the quarter ended July 30. That reverses the year-ago loss of $3.5 million, or 7 cents a share. Sales fell 1% from a year ago to $451 million.
"While we have continued to make steady progress in the evolution of our business model, we remain concerned with several macroeconomic factors, including continued rising energy prices and interest rates, which could impact the industry's growth prospects and dampen consumer confidence," CEO Kurt Darrow said. "Additionally, there has been fierce competition for consumers' discretionary income, with employee pricing offers from the automotive industry, which is contributing to weak retail furniture demand."
La-Z-Boy forecast second-quarter earnings of roughly 19 cents a share on a sales drop in the low single-digit range percentagewise from the year-ago $521 million. Analysts surveyed by Thomson First Call were calling for a 23-cent profit on sales of $537 million.
On Monday, La-Z-Boy shares slipped a nickel to $13.99.