La-Z-Boy’s cost cuts start to pay off

Article Excerpt

LA-Z-BOY INC. $15 (New York symbol LZB; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 51.4 million; Market cap: $771.0 million; WSSF Rating: Average) earned $0.13 a share from continuing operations in its third fiscal quarter ended January 27, 2007, down 31.6% from $0.19 a year earlier. Sales fell 9.6%, to $403.9 million from $446.6 million. Despite the poor results, La-Z-Boy’s restructuring plan is starting to work. The profit margin at its casegoods (wood furniture) division improved to 9.1% from 7.9% a year earlier. Margins at its upholstery division held steady at 7.6%, despite an 11.8% drop in sales. The company has agreed to sell its Sam Moore Furniture division, which makes upscale upholstered chairs. The company did not reveal the price, but the sale will help it focus on its core furniture manufacturing operations and stores. La-Z-Boy is a buy. buy…

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