MONROE, Mich. (AP) -- La-Z-Boy Inc.'s shares fell more than 6 percent in pre-market trading Tuesday, a day after the company reported a 35 percent slide in earnings for its fiscal second quarter.
It said the weak economy and low consumer confidence hurt sales of big-ticket items.
Both earnings and revenue came in below expectations, and its shares fell 52 cents, or 6.4 percent, to $7.60 in pre-market trading.
After the markets closed Monday, the furniture company reported net income of $3.9 million, or 7 cents per share, for the three months ended Oct. 23, down from $6 million, or 11 cents per share, in the same quarter a year ago.
Analysts surveyed by Thomson Reuters had forecast earnings of 14 cents per share. Analysts typically don't account for one-time charges.
Quarterly revenues fell 2.6 percent to $293 million from $300.7 million a year ago. Analysts had forecast revenues of $303 million.
The Monroe-based recliner maker said sales of upholstered furniture declined 3.4 percent, reflecting lower average sale prices and higher raw material costs. Sales of case goods, including wood dressers, bookshelves, and other items, rose 5.9 percent.
The retail segment's sales rose 3.2 percent. La-Z-Boy said it closed more sales but had lower customer traffic.
Published: Wed, Nov 24, 2010
