Submitted by Naomi M on Thu, 11/15/2007 - 15:23.
Housing Slump Adversely Affecting Sales of Big-Ticket Items
A weak housing market and a slowing economy continue to reduce demand on big-ticket items like furniture products.
La-Z-Boy posted a loss of $9.9 million, or ($0.19) per share, compared with a profit of $2 million, or $0.04 per share, in the year ago period.
Consumers Have Empty Pockets
Consumers continue to shy away from purchasing big-ticket items like furniture amid weak housing conditions, higher gas prices, and mounting credit worries. As a result, the outlook for La-Z-Boy remains uncertain.
Hurt by a weak housing market and a challenging environment across the furniture industry, second quarter revenue slipped nearly 12% year-over-year to $365.4 million, also missing the consensus estimate of $371.6 million. Sales in the company's upholstery unit fell 13% to $269.7 million, while sales in its case goods unit declined 21% to $58.9 million. Retail sales were down 12% at $46.2 million.
The housing slump and credit crunch will have many casualties in the months to come.
Source: http://www.reuters.com/article/storyStocksBriefing/ idUSST20071114093111cbirkner20071114
La-Z-Boy posted a loss of $9.9 million, or ($0.19) per share, compared with a profit of $2 million, or $0.04 per share, in the year ago period.
Consumers Have Empty Pockets
Consumers continue to shy away from purchasing big-ticket items like furniture amid weak housing conditions, higher gas prices, and mounting credit worries. As a result, the outlook for La-Z-Boy remains uncertain.
Hurt by a weak housing market and a challenging environment across the furniture industry, second quarter revenue slipped nearly 12% year-over-year to $365.4 million, also missing the consensus estimate of $371.6 million. Sales in the company's upholstery unit fell 13% to $269.7 million, while sales in its case goods unit declined 21% to $58.9 million. Retail sales were down 12% at $46.2 million.
The housing slump and credit crunch will have many casualties in the months to come.
Source: http://www.reuters.com/article/storyStocksBriefing/ idUSST20071114093111cbirkner20071114
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