La-Z-Boy reports surprise fiscal Q1 profit on ‘strong’ demand

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Shares of La-Z-Boy Inc. fell about 1% in the extended session Tuesday after the furniture maker reported a surprise fiscal first-quarter profit and said it has seen “strong demand” for its recliners and other pieces. The company said it earned $4.8 million, or 10 cents a share, in the quarter, compared with 38 cents a share a year ago. Adjusted for one-time items, La-Z-Boy earned 18 cents a share, compared with 42 cents a share a year ago. Sales fell 31% to $285.5 million due to the impact of COVID-19, the company said. Analysts polled by FactSet had expected an adjusted loss of 13 cents a share on sales of $290 million. “Our first quarter began in May with most of our customers still closed due to COVID-19. However, as retailers re-opened, written orders rapidly accelerated in June and July, with consumers spending a higher percentage of discretionary dollars on home furnishings,” Chief Executive Kurt L. Darrow said in a statement. La-Z-Boy has re-opened all its operations across its retail, distribution and manufacturing businesses, and plants have increased production to meet demand. The company is “cautiously optimistic” about the fall, it said. Shares ended the regular trading session down nearly 2%.
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