La-Z-Boy results miss expectations as US weather chills sales

Tue Feb 18, 2014 6:11pm EST

Feb 18 (Reuters) - La-Z-Boy Inc, known for its namesake recliners, reported a quarterly profit that missed market expectations as unseasonably cold weather in the United States, its biggest market, hurt sales.

The company's shares slid as much as 11 pct in extended trading on Tuesday.

Large parts of the U.S. have been gripped by snow storms over the past two months hurting retail sales in categories like clothing, furniture stores and restaurants that depend on foot traffic.

La-Z-Boy said on Tuesday its markets in the northeast and Midwest were challenged during the third quarter ended Jan. 25.

The company's sales rose 3 percent to $350.4 million and same-store written sales for the La-Z-Boy Furniture Galleries store network rose 3.6 percent in the quarter.

Wholesale upholstery segment revenue, the main contributor to the company's sales, rose 3.4 percent to $280.3 million.

Net income attributable to the company fell to $16.5 million, or 31 cents per share, from $17.1 million, or 32 cents per share, a year earlier.

Earnings from continuing operations rose to 32 cents per share.

Analysts on average were expecting the company to earn 35 cents per share on revenue of $378.7 million, according to Thomson Reuters I/B/E/S.

The company's shares have risen 81 percent in the past 12 months and closed at $27.11 Tuesday on the New York Stock Exchange. (Reporting By Devika Krishna Kumar; Editing by Savio D'Souza)

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