, one of the nation's largest furniture makers, reported higher quarterly earnings Monday, topping Wall Street estimates by 3 cents, as strong upholstery sales and cost-cutting measures offset the effects of weak consumer spending and demand.
The Monroe, Mich.-based company posted a second-quarter net profit of $28.7 million, or 50 cents a share, up from $12.4 million, or 20 cents a share, in the same period last year. The elimination of goodwill and trade name amortization under new accounting regulations added 3 cents a share to second-quarter results. Revenue for the quarter grew a meager 1.1% to $563.6 million, from $557.4 million. Sales at its upholstery division rose 8.5%.Analysts were expecting the company to earn 47 cents a share, according to Thomson Financial/First Call
"The relatively slower revenue growth in the most recent quarter reflected weak and tenuous U.S. consumer confidence, which strongly correlates with furniture sales," the company said in a press release
Looking forward, La-Z-Boy said it expects third-quarter earnings to come in at 40 cents to 45 cents a share. Earnings for full-year fiscal 2003 are targeted at $1.70 to $1.80 a share. Third-quarter sales volume is expected to be flat to slightly higher on a sequential basis. Analysts were expecting the company to earn 47 cents per share in the quarter and $1.80 a share for the full year.
"While we have experienced an upswing in business through the first half of our current fiscal year, our comparables become much more difficult over the next six months," the company said.
The shares closed down 70 cents, or 2.9%, at $23.40 on the
New York Stock Exchange. La-Z-Boy is up roughly 16% year to date.