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LA-Z-BOY HAD RECORD SALES IN FISCAL 1993 FIRST QUARTER

 LA-Z-BOY HAD RECORD SALES IN FISCAL 1993 FIRST QUARTER
 MONROE, Mich., Aug. 18 /PRNewswire/ -- La-Z-Boy Chair Company


(NYSE: LZB; PSE) sales during the company's fiscal 1993 first quarter ended July 25, 1992, exceeded sales for any first quarter in the company's 64-year history. Earnings were affected by the costs of new product introductions and changes in the mix of sales of different product lines. La-Z-Boy is the nation's largest manufacturer of upholstered furniture.
 La-Z-Boy consolidated net sales rose to just over $140 million, an increase of 8 percent from $130 million in the fiscal 1992 first quarter. All of the sales improvement was internally generated. The Residential Division, which accounts for the bulk of the company's business, increased its sales of newer products such as reclining sofas, stationary sofas, and upscale La-Z-Boy Classics recliners. While the furniture industry is experiencing a decline in the market for traditional rocker recliner chairs, La-Z-Boy is achieving higher sales of chaise recliners and of its new La-Z-Rest line of recliner chairs priced to appeal to younger families and to first-time La-Z-Boy buyers.
 Each of La-Z-Boy's six marketing divisions recorded higher sales. The strongest percentage gains were recorded by the Contract Division, which produces office chairs and desks and by Kincaid, which produces solid wood bedroom and dining room furniture.
 Net earnings were $2.8 million or $.15 per share compared to $2.9 million, or $.16 per share, in the fiscal 1992 first quarter. Earnings historically have been lowest in the first quarter of the year due to the company's two-week vacation shutdown in July and the normally slower retail demand during the summer.
 La-Z-Boy chairman and president, Charles T. Knabusch, said an earnings improvement has been delayed by engineering and production startup costs for a record number of new products, and to a lesser degree by cost impacts of a changeover at La-Z-Boy upholstered furniture plants from conventional production lines to more flexible "work cell" assembly techniques.
 On July 27, 1992, the company's board of directors declared a cash dividend of $.15 per share payable Sept. 10, 1992, thereby maintaining dividends at their current level.
 How La-Z-Boy Addresses a Changing Marketplace
 Looking at the second fiscal quarter, Knabusch said, "Although we see some spotty signs of improvement in the economy, nothing to date has re-energized overall furniture industry sales. The gains La-Z-Boy is making result from aggressive actions." Knabusch also said that order backlogs are higher now than at the same time last year.
 "Over the past several years, we have expanded our product range and revised our marketing strategies to take advantage of changes in consumer buying preferences. For example, we now offer high-quality, affordable furniture for every room in the home. We have products for budget-conscious families and for those who want to step up in style. An expanding national network of La-Z-Boy retail stores offers convenient, one-stop shopping for busy families. We continually engineer improvements that provide better products for the consumer, efficiencies in production for La-Z-Boy, and pricing advantages for our retailers," Knabusch said.
 Later this month, La-Z-Boy will augment its heavy consumer advertising program as news personality Paul Harvey begins to promote La-Z-Boy products on his nationally syndicated daytime radio program.
 La-Z-Boy is preparing numerous new styles in its top-selling furniture collections for introduction at this fall's International Home Furnishings Market. La-Z-Boy has begun to deliver its new American Home sofa collection which was introduced at the April 1992 High Point Furniture Market.
 The La-Z-Boy Contract Division recently introduced a totally new line of modular office systems aimed at the growing number of small businesses. "We believe these new products will be important additions to the Contract Division's line of quality office furniture," Knabusch said. The new modular systems are being manufactured by the RoseJohnson Division. They will become available through leading office furnishings dealers this fall.
 LA-Z-BOY CHAIR COMPANY EARNINGS
 (Dollars in thousands, except for per-share data; unaudited)
 First Quarter Ended July 25, July 27,
 1992 1991
 Net sales $140,003 $130,004
 Net income $2,783 $2,947
 Earnings per share $0.15 $0.16
 -0- 8/18/92
 /CONTACT: F.H. Jackson, vice president, finance, or Jim Korsnack of La-Z-Boy Chair Company, 313-241-4208/
 (LZB) CO: La-Z-Boy Chair Company ST: Michigan IN: REA SU: ERN


SB-SM -- DE016 -- 1121 08/18/92 17:14 EDT
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Date:Aug 18, 1992
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