UPDATE 1-La-Z-Boy posts loss, suspends dividend

*Dividend suspended

*Loss 17 cents excl items vs. estimate loss 10 cents

*Shares closed down 3.2 percent (Adds sales, Reuters Estimates)

ATLANTA, Feb 17 (Reuters) - Furniture maker and retailer La-Z-Boy Inc (LZB.N) reported a quarterly loss on Tuesday as sales fell and said it suspended its quarterly dividend to save cash.

The company, which is closing stores and reducing headcount, said it also was required to take a noncash write-down of $46 million on its intangible assets. It cited other special items, including a $9.4 million charge for bad debts that reflected weak retail markets.

The loss came to $64.4 million, or $1.25 a diluted share for the fiscal third quarter ended Jan. 24, compared with net income of $9.5 million, or 18 cents a share, a year earlier.

Excluding charges, the loss came to 17 cents a share, compared with a loss of 10 cents a share expected by analysts on average, according to Reuters Estimates.

Total sales fell 23 percent to $288.6 million. Upholstery segment sales sank 30 percent, while wood furniture sales fell 20 percent, hurt by cancellations or postponements of orders from large dealers. Retail sales were down 19 percent.

U.S. furnishings companies, reeling from an industrywide slump, have been forced to trim operating costs as the recession and weaker home values pressure consumers.

In November, La-Z-Boy said it would reduce its headcount by about 10 percent, or 850 workers, and close as many as 20 La-Z-Boy Furniture Galleries stores.

On Tuesday, La-Z-Boy said that 15 stores, located mainly in southeast Michigan, California and Florida, have closed or are holding store-closing sales.

La-Z-Boy, based in Monroe, Michigan, also said it decided to suspend its quarterly dividend to conserve cash.

Rivals such as Ethan Allen Interiors (ETH.N) and Furniture Brands International Inc (FBN.N) have announced dividend reductions or job cuts in recent months.

La-Z-Boy shares closed down 3 cents, or 3.2 percent, to 92 cents in New York Stock Exchange trading on Tuesday. The stock has fallen 89 percent in the past year. (Reporting by Karen Jacobs; Editing by Phil Berlowitz)