La-Z-Boy Inc. said Tuesday it expects to post a large loss for the fiscal second quarter due to supply chain issues, disappointing sales and restructuring charges.
The maker of upholstered furniture now anticipates a loss of 17 cents to 21 cents per share, including a restructuring charge of 9 cents to 10 cents per share, well below the 17 cents to 21 cents per share in profit previously expected.
Sales for the quarter ending Oct. 29, are expected to be down in the low teen-digit range compared with last year's second quarter and down from the low single-digit range decrease originally projected.
Analysts surveyed by Thomson Financial expect earnings of 14 cents per share on revenue of $506.3 million.
La-Z-Boy said the previous guidance was made prior to its decision to close its Waterloo, Ontario-based upholstery plant and before supply chain problems caused a shortage of polyurethane foam and hurt sales.
The company also said a slowdown in the overall retail environment, as well as eroding consumer confidence due to the hurricanes and higher fuel costs, hurt sales.
The company plans to report second-quarter results Nov. 15.