MONROE -As spooked shoppers continue to put off replacing furniture, losses at La-Z-Boy Inc. soared more than fivefold in its fiscal second quarter, officials said yesterday.
The furniture maker lost $54 million, or $1.04 a share, for the three-month period ended Oct. 25. That compared to a loss of $9.9 million, or 19 cents a share, at the same time last year.
Sales plunged 9 percent to $332 million at the firm best-known for La-Z-Boy recliners.
"Over the course of the quarter, we experienced a progressive decline in sales trends, particularly in October, as sales deteriorated in conjunction with the turmoil in the global financial and credit markets," Chief Executive Kurt Darrow said.
Given uncertainty about sales in coming weeks and expectations of a "protracted recession," officials are no longer able to provide guidance to Wall Street about the firm's annual earnings, they said in a written statement.
Executives underscored steps taken to deal with the problems, including 850 layoffs; suspension of credit support to 15 to 20 dealer-owned stores that likely will close; reduction in capital projects to $18 million to $20 million from $27 million; and inventory reductions.The earnings report was released after the close of financial markets. Earlier, La-Z-Boy shares climbed 49 cents, or 11 percent, to $4.95.
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