— Furniture Today,
MONROE, Mich. — La-Z-Boy has slashed its earnings estimate for the second fiscal quarter, blaming a weaker-than-anticipated retail environment.


The company now says earnings for the quarter ending Oct. 28 should be 1 cent to 4 cents per share. That’s down from its previous estimate of 11 cents to 15 cents per share.

The company said sales are expected to be about even with last year’s second quarter. Earlier estimates called for sales to rise in the mid-single digits.

“Although we saw a pickup in written sales over the Labor Day weekend, the momentum was brief and subsequent activity has been sporadic,” said Kurt Darrow, president and CEO.

Darrow said the lower-than-expected sales volume is affecting both its company-owned La-Z-Boy Furniture Galleries stores and its wholesale upholstery and case goods businesses. However, the impact on margins will be greater in the retail segment, he said.

“In our retail segment, where we have a higher fixed cost structure and are continuing to address transitional issues in many of our markets, the decrease in volume is having a significant impact on our expected operating margins,” he said.

La-Z-Boy is scheduled to announce second-quarter results on Nov. 14.