* Q3 EPS $0.21 vs loss/shr $1.25 yr-ago
* Q3 rev $305.1 mln
* Shares up 7 pct in extended trade
(Adds analyst comments, updates share movement)
Feb 16 Furniture maker and retailer La-Z-Boy
Inc (LZB.N) posted a quarterly profit compared with a loss a
year ago, helped by strong demand at its upholstery business
and lower costs, sending its shares up 7 percent after the
The company, which is known for its popular recliners, said
it expects to begin realizing further cost savings, benefiting
its results in the next fiscal year, but added that its current
primary focus would be to boost sales.
La-Z-Boy's focus on sales growth, coupled with continued
expense controls could chart the course for a solid earnings
increase in fiscal 2011, Wall Street Strategies analyst Brian
Sozzi said in a note.
"We continue to believe that La-Z-Boy, having a stronger
capital structure and healthier overall operations, is
positioned to reinstate the dividend it abandoned at the height
of the credit crisis," he added.
La-Z-Boy has cut costs, curtailed capital spending and
suspended some employee benefits and quarterly dividend to help
tide over the economic slowdown.
For the third quarter ended Jan. 23, La-Z-Boy earned $11
million, or 21 cents a share, compared with a loss of $64.5
million, or $1.25 a share, a year ago.
Excluding a restructuring charge and new adjustment of
income from anti-dumping duties, it earned 17 cents a share,
according to Thomson Reuters I/B/E/S.
Revenue rose nearly 6 percent to $305.1 million in the
quarter, with sales in the upholstery segment surging 18
percent to $234.3 million.
Analysts on average were expecting earnings of 9 cents a
share, before items, on revenue of $275.6 million.
"Our mid-price-point focus has served our company well in
this environment. We are also encouraged that the consumer
appears to be slowly returning to the marketplace," Chief
Executive Kurt Darrow said in a statement.
Shares of Monroe, Michigan-based La-Z-Boy rose $0.82 to
$12.46 in extended trade. They closed at $11.64 Tuesday on the
New York Stock Exchange.
(Reporting by Renju Jose in Bangalore; Editing by Unnikrishnan