In keeping with already lowered EPS guidance, the company posted earnings of 28 cents per share, compared to 50 cents per share for the same quarter last year. Second-quarter net income was down 47% and sales were down 9.3% from last year's strong numbers, at $15.2 million and $511 million, respectively.
The company followed up with cautious guidance for the third quarter, saying it will earn 26 cents to 30 cents per share, compared to last year's 41 cents a share. Management also forecast sales in the mid-single digits.
There have been reasons to wonder how things are going at La-Z-Boy; after all, in September, the company's president and COO took a hike. But the fact is the overall industry has faced some sluggish times.
Despite indications that consumers are emerging from hibernation, they don't seem to be shelling out the big bucks on furniture. Ethan Allen
Both Ethan Allen and La-Z-Boy said that orders trends have shown promise of late, indicating the possibility of an improving outlook. La-Z-Boy hopes there is pent-up consumer demand for furniture. (Tom Gardner has his hopes on tiny Hooker Furniture
Whether hunkering down for the winter will entail furniture purchases despite the cash earmarked for holiday shopping remains to be seen, but it could be an uncomfortable winter ahead. Either way, La-Z-Boy needs to be ready with superior products when consumers do decide to give their living rooms a lift.
Will shoppers remember their creature comforts for the winter, and choose a new La-Z-Boy, or will they continue to play potato on last year's couches? Discuss with Fools on the La-Z-Boy discussion board. Or contact Alyce Lomax at firstname.lastname@example.org .