La-Z-Boy said today it now expects earnings per share for its second fiscal quarter ending October 25, 2003 to be 30% lower than previously announced. The company expects earnings to be in the range of $0.26 - $0.29 per diluted share, compared to its previously announced range of $0.38 - $0.43. These results will include approximately $0.03 per diluted share of expense relating to the previously-announced closure of three La-Z-Boy casegoods manufacturing facilities.

La-Z-Boy president and CEO Kurt Darrow noted that the reduced earnings guidance is due to a shortfall in sales for the quarter compared to the company's August estimate. "As has been widely reported," Darrow said, "Labor Day weekend was a generally strong period for retail furniture sales throughout the country. Unfortunately, this improved business trend did not continue and we have seen a declining incoming order rate in recent weeks. Contributing to the slowdown in sales at retail was the impact and after- effects of Hurricane Isabel, which disrupted retail sales throughout much of the East Coast. We now expect our year-over-year sales decline for the October quarter to be in the upper single digit percentage range, compared to the mid-single digit percentage decline we had been anticipating back in August."

Darrow continued, "The relatively large impact on our earnings compared to the sales shortfall is primarily the result of heavier promotional pricing activities and overcapacity resulting from anticipation of a seasonal increase in demand, which has not materialized to date."

In the October 2002 second fiscal quarter, La-Z-Boy Incorporated earned $0.50 per diluted share on total sales of $564 million. The company plans to report this year's fiscal second quarter operating results the after the market close Monday, November 10, 2003 and will conduct its regular quarterly investor conference call the following morning, Tuesday, November 11, 2003 at 8 a.m. EST.