From staff reports
La-Z-Boy Inc. this week reported results for its fourth quarter and for the full fiscal year ending April 26.
Net sales for the quarter were $368 million, down 9.8 percent from $408 million one year earlier. The company also reported a net loss from continuing operations of $4.5 million, or a loss of 9 cents per share, compared with income of $8.4 million, or 16 cents per share, for the same period last year.
The 2008 fourth quarter included a restructuring charge of 4 cents per share stemming from the closure of the company’s Tremonton, Utah, upholstery plant.
The previous year’s fourth quarter included a restructuring charge of 8 cents per share related to the closure of several of the company’s upholstery operations and retail outlets, and a 14-cent gain on the sale of those properties.
For the full fiscal year, La-Z-Boy reported sales of $1.5 billion, down from $1.62 billion a year earlier. The company reported a loss for the year of $7.5 million, or 15 cents per share, compared with income of $19.8 million, or 38 cents per share, one year earlier.
For the full fiscal year, the company’s results included a restructuring charge of 13 cents per share related to plant and retail outlet closings.
Kurt L. Darrow, La-Z-Boy’s president and chief executive officer, said in a statement: “In an operating environment that continues to be marked by challenges, fiscal 2008 was a transitional year for La-Z-Boy. We continued our momentum in making significant changes to our business model, including rationalizing our portfolio of operating companies, transitioning our La-Z-Boy branded manufacturing facilities to cellular production, closing several upholstery facilities, launching a new comprehensive marketing campaign, consolidating our retail warehouses and IT systems and strengthening our balance sheet by reducing our debt by 31 percent.”
Darrow added: “The success of the conversion of our La-Z-Boy branded facilities to the cellular production process is clearly evident in our results. On lower volume, we improved our operating margin year-over-year and, with the implementation of cellular now substantially completed, we anticipate our performance going forward will improve.”
Commenting on the company’s outlook, Kurt L. Darrow, La-Z-Boy’s president and chief executive officer, said in a statement: “We will continue to make changes to our business to positively impact both the top and bottom lines; however, we remain cautious in our outlook for the full fiscal 2009 year and anticipate a 3 percent to 7 percent decrease in sales compared with fiscal 2008 and earnings per share to be in the range of 15 cents to 25 cents.”
From staff reports