La-Z-Boy sales hit by hurricanes

16/11/2005

US furniture manufacturer La-Z-Boy Incorporated has reported a fall in sales for the second fiscal quarter ended October 29. Net sales for the quarter were $454.6 million, down $66.2 million, or 13%, compared with the prior-year period. 

For the six months ended October 29, 2005, net sales were $906.1 million, a decrease of $69.8 million, or 7%, compared with sales of $975.9 million in the prior-year period. 

President and CEO Kurt Darrow said, "Our results for the second quarter were impacted by a number of factors, most notably the supply chain issues resulting from Hurricanes Katrina and Rita, the restructuring charge and a softer-than-expected retail environment.”

For the fiscal second quarter, sales in the company's upholstery group - which includes companies such as Bauhaus, Centurion, Clayton Marcus, England, La-Z-Boy, and Sam Moore - decreased $60.4 million, or 15.9%, compared with the prior-year period, and the operating margin decreased to 3.9% from 7.2% in the prior-year quarter.