La-Z-Boy Updates April Fourth Quarter Outlook

Apr 19, 2001, 01:00 ET from La-Z-Boy Incorporated

    MONROE, Mich., April 19 /PRNewswire/ -- La-Z-Boy Incorporated
 (NYSE:   LZB; PCX) announced today that its fourth fiscal quarter ending April
 28, 2001 will fall short of expectations.
     La-Z-Boy Incorporated President and Chief Operating Officer Jerry Kiser
 said, "We previously announced that we anticipated a 'challenging' fourth
 quarter, with sales, after adjusting for one less week in fiscal fourth
 quarter, likely to be 'relatively flat' and earnings expected to decline to
 $0.30 - $0.40 per diluted share.  We are now expecting sales to be flat to
 slightly down, with earnings for the quarter in the range of $0.26 - $0.31 per
 diluted share, excluding a $0.11 per share charge for restructuring."
     Kiser continued, "Our restructuring efforts are aimed at rationalizing our
 production capacity to achieve a more efficient utilization and to exit
 certain unprofitable product lines.  More specific announcements will be
 forthcoming."
     Kiser stated, "In addition to the restructuring charge, margins for the
 quarter will be reduced due to continuing credit problems at several major
 furniture retailers which will necessitate an additional increase in bad debt
 expense for the quarter."
     Chairman Pat Norton added, "The longer-term outlook for our industry
 remains very positive -- especially for a company such as La-Z-Boy, with its
 powerful consumer brand names and strong proprietary distribution system.
 Consumer demographics remain very positive for our industry, U.S. housing
 activity has stayed surprisingly healthy, mortgage rates have declined
 significantly, and recent and projected Federal Reserve Board interest rate
 cuts should begin to positively affect both the economy and U.S. consumer
 spending patterns later this year."
     Norton commented that the company continues to plan for the addition of
 25-30 new La-Z-Boy Furniture Galleries(R) stores during fiscal 2002, as well
 as the further strengthening of major in-store gallery programs already in
 place at various other La-Z-Boy Incorporated operating divisions.
     La-Z-Boy will host an analyst/investor meeting April 20, 2001 in its High
 Point, NC furniture showroom, starting at 11 a.m. EDT.  The meeting will be
 webcast live and will also be archived on the Internet until May 10, 2001.
 Both the live webcast and the archive will be available at www.la-z-boy.com .
 The meeting will also be accessible live via telephone at 800-374-1296 for
 callers from the U.S. and Canada, and at 706-634-5855 for international
 callers.  A telephone replay will be available until April 27 at 800-642-1687
 for callers from the U.S. and Canada, and 706-645-9291 for international
 callers.  The replay passcode will be 748948.
 
     La-Z-Boy Background Information
     With annual sales in excess of $2 billion, La-Z-Boy Incorporated is one of
 the world's largest residential furniture producers, employing about 21,000
 people company wide and operating 56 manufacturing facilities in eleven states
 and four foreign countries.  The La-Z-Boy Incorporated family of companies --
 Alexvale, American Drew, Bauhaus, Clayton Marcus, England, Inc., Hammary,
 HickoryMark, Kincaid, La-Z-Boy, La-Z-Boy Contract Furniture Group, Lea,
 Centurion, Pennsylvania House, Pilliod and Sam Moore -- produces furniture for
 every room of the home and office.  And, under the American of Martinsville
 brand name, La-Z-Boy is also a leading manufacturer of contract room furniture
 for the hospitality and assisted-living markets.
     With its vast distribution network of proprietary retailers, including 290
 La-Z-Boy Furniture Galleries(R) and 319 La-Z-Boy In-Store Gallerys, in-store
 gallery programs at Kincaid, Pennsylvania House and Clayton Marcus, England,
 Inc.'s Custom Comfort Centers and Lea's Kid's Generation displays, over 9
 million square feet of retail floor space is dedicated exclusively to selling
 La-Z-Boy Incorporated products.  According to industry trade publication
 Furniture/Today, the La-Z-Boy Furniture Galleries retail network by itself
 represents the industry's sixth largest U.S. furniture retailer.  La-Z-Boy's
 stock is traded on the New York and Pacific stock exchanges under the trading
 symbol: LZB.
 
     Forward-looking Information
     Any forward-looking statements contained in this report represent
 management's current expectations, based on present information and current
 assumptions.  Actual results could differ materially from those anticipated or
 projected due to a number of factors.  These factors include, but are not
 limited to, anticipated sales growth, success of new products, interest rate
 fluctuations, changes in consumer confidence or demand and other risks and
 factors identified from time to time in the company's reports filed with the
 Securities and Exchange Commission.  The company undertakes no obligation to
 update or revise any forward-looking statements, either to reflect new
 developments, or for any other reason.
 
     Additional Information
     This news release is just one part of La-Z-Boy's financial disclosures and
 should be read in conjunction with other information filed with the Securities
 and Exchange Commission, including the company's most recent Form 10-Q report.
 That Form 10-Q, containing the latest quarter's income statement, balance
 sheet, cash flow statement, segment information and additional management
 discussion and analysis of the financial results, is available at
 www.la-z-boy.com .
 
 

SOURCE La-Z-Boy Incorporated
    MONROE, Mich., April 19 /PRNewswire/ -- La-Z-Boy Incorporated
 (NYSE:   LZB; PCX) announced today that its fourth fiscal quarter ending April
 28, 2001 will fall short of expectations.
     La-Z-Boy Incorporated President and Chief Operating Officer Jerry Kiser
 said, "We previously announced that we anticipated a 'challenging' fourth
 quarter, with sales, after adjusting for one less week in fiscal fourth
 quarter, likely to be 'relatively flat' and earnings expected to decline to
 $0.30 - $0.40 per diluted share.  We are now expecting sales to be flat to
 slightly down, with earnings for the quarter in the range of $0.26 - $0.31 per
 diluted share, excluding a $0.11 per share charge for restructuring."
     Kiser continued, "Our restructuring efforts are aimed at rationalizing our
 production capacity to achieve a more efficient utilization and to exit
 certain unprofitable product lines.  More specific announcements will be
 forthcoming."
     Kiser stated, "In addition to the restructuring charge, margins for the
 quarter will be reduced due to continuing credit problems at several major
 furniture retailers which will necessitate an additional increase in bad debt
 expense for the quarter."
     Chairman Pat Norton added, "The longer-term outlook for our industry
 remains very positive -- especially for a company such as La-Z-Boy, with its
 powerful consumer brand names and strong proprietary distribution system.
 Consumer demographics remain very positive for our industry, U.S. housing
 activity has stayed surprisingly healthy, mortgage rates have declined
 significantly, and recent and projected Federal Reserve Board interest rate
 cuts should begin to positively affect both the economy and U.S. consumer
 spending patterns later this year."
     Norton commented that the company continues to plan for the addition of
 25-30 new La-Z-Boy Furniture Galleries(R) stores during fiscal 2002, as well
 as the further strengthening of major in-store gallery programs already in
 place at various other La-Z-Boy Incorporated operating divisions.
     La-Z-Boy will host an analyst/investor meeting April 20, 2001 in its High
 Point, NC furniture showroom, starting at 11 a.m. EDT.  The meeting will be
 webcast live and will also be archived on the Internet until May 10, 2001.
 Both the live webcast and the archive will be available at www.la-z-boy.com .
 The meeting will also be accessible live via telephone at 800-374-1296 for
 callers from the U.S. and Canada, and at 706-634-5855 for international
 callers.  A telephone replay will be available until April 27 at 800-642-1687
 for callers from the U.S. and Canada, and 706-645-9291 for international
 callers.  The replay passcode will be 748948.
 
     La-Z-Boy Background Information
     With annual sales in excess of $2 billion, La-Z-Boy Incorporated is one of
 the world's largest residential furniture producers, employing about 21,000
 people company wide and operating 56 manufacturing facilities in eleven states
 and four foreign countries.  The La-Z-Boy Incorporated family of companies --
 Alexvale, American Drew, Bauhaus, Clayton Marcus, England, Inc., Hammary,
 HickoryMark, Kincaid, La-Z-Boy, La-Z-Boy Contract Furniture Group, Lea,
 Centurion, Pennsylvania House, Pilliod and Sam Moore -- produces furniture for
 every room of the home and office.  And, under the American of Martinsville
 brand name, La-Z-Boy is also a leading manufacturer of contract room furniture
 for the hospitality and assisted-living markets.
     With its vast distribution network of proprietary retailers, including 290
 La-Z-Boy Furniture Galleries(R) and 319 La-Z-Boy In-Store Gallerys, in-store
 gallery programs at Kincaid, Pennsylvania House and Clayton Marcus, England,
 Inc.'s Custom Comfort Centers and Lea's Kid's Generation displays, over 9
 million square feet of retail floor space is dedicated exclusively to selling
 La-Z-Boy Incorporated products.  According to industry trade publication
 Furniture/Today, the La-Z-Boy Furniture Galleries retail network by itself
 represents the industry's sixth largest U.S. furniture retailer.  La-Z-Boy's
 stock is traded on the New York and Pacific stock exchanges under the trading
 symbol: LZB.
 
     Forward-looking Information
     Any forward-looking statements contained in this report represent
 management's current expectations, based on present information and current
 assumptions.  Actual results could differ materially from those anticipated or
 projected due to a number of factors.  These factors include, but are not
 limited to, anticipated sales growth, success of new products, interest rate
 fluctuations, changes in consumer confidence or demand and other risks and
 factors identified from time to time in the company's reports filed with the
 Securities and Exchange Commission.  The company undertakes no obligation to
 update or revise any forward-looking statements, either to reflect new
 developments, or for any other reason.
 
     Additional Information
     This news release is just one part of La-Z-Boy's financial disclosures and
 should be read in conjunction with other information filed with the Securities
 and Exchange Commission, including the company's most recent Form 10-Q report.
 That Form 10-Q, containing the latest quarter's income statement, balance
 sheet, cash flow statement, segment information and additional management
 discussion and analysis of the financial results, is available at
 www.la-z-boy.com .
 
 SOURCE  La-Z-Boy Incorporated