UPDATE 1-La-Z-Boy posts Q1 loss; Mexico ops yet to normalize

Tue Aug 17, 2010 5:31pm EDT

* Does not see Mexico ops significantly hurting H2

* Q1 same-store sales slip 3.9 pct

* Shares down 7 pct after market

Aug 17 (Reuters) - Furniture maker and retailer La-Z-Boy Inc (LZB.N) posted a quarterly loss and said its storm-hit Mexico operations had not yet normalized.

Shares of the Monroe, Michigan-based company were down 7 percent at $7.03 in after-market trade.

Earlier this month, the company, known for its popular recliners, had forecast a dismal first quarter, saying it was hurt by higher input costs, supply chain disruptions and production delays, on account of the flooding caused at its Mexico facility by Hurricane Alex. [ID:nSGE6740MO]

La-Z-Boy said on Tuesday that it does not expect these factors to hurt results during the remainder of the year as much as they did in the first quarter. For the first quarter ended July 24, the company posted a loss of $0.2 million, or breakeven on a per share basis, compared with earnings of $2.0 million, or 4 cents a share, a year earlier.

Net sales were up slightly at $263.3 million.

Analysts were expecting the company to break even, and report net sales of $263.8 million, according to Thomson Reuters I/B/E/S. [ID:nASA00O33]

The stock, which is up 17 percent from a 52-week low of $6.44 in July, closed at $7.52 Tuesday on the New York Stock Exchange. (Reporting by Shradhha Sharma in Bangalore; Editing by Anne Pallivathuckal)

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