Exhibit 99.1
 
 NEWS RELEASE
 Contact: kathy.liebmann@la-z-boy.com
 LA-Z-BOY REPORTS FISCAL 2009 SECOND-QUARTER RESULTS  Results impacted by non-cash tax charge of $38.2 million, or $0.74 per share
   
    
    Net sales for the quarter were $331.9 million, down 9.2% compared with the prior-year
period resulting from increasingly difficult macroeconomic conditions which further
weakened consumer demand for furniture;
    
    The company reported a net loss of $53.7 million, or a loss of $1.04 per share, which
included a non-cash $0.74 per-share charge for a valuation allowance against the companys
deferred tax assets and a $0.04 per-share restructuring charge, primarily related to the
closure of the companys Tremonton, Utah and United Kingdom operations;
    
    For the prior-year second quarter, the company posted a net loss of $9.9 million, or
$0.19 per share, which included a $0.11 per-share charge for a write-down of goodwill
related to the companys stores in southeastern Florida, a $0.12 per-share charge from
discontinued operations, a large portion of which was attributable to intangible assets and
liquidating inventory of businesses held for sale, and a $0.01 restructuring charge;
  
    
    An immediate reduction in our headcount by about 10%, or approximately 850 employees,
across all levels of the company, which will result in an annual savings of $16 to $20
million;




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##### 




    
    Due to the overall tightening of the financial markets, and our decision to withdraw
credit support to certain independent dealers, we anticipate the closure of 15 to 20,
primarily dealer owned, La-Z-Boy Furniture Galleries® stores over the next 90 to 120 days;
    
    A significant reduction of our planned fiscal 2009 capital expenditures from about $27
million to approximately $18 million to $20 million; and
    
    An aggressive reduction of our overall operating expenses and inventories to be in
alignment with todays volumes.
  Upholstery




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##### 



Casegoods
  Retail
   Income Tax
  Balance Sheet




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##### 



Business Outlook
  Forward-looking Information
  Additional Information
 http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx
 http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
 Background Information
  In Furniture http://www.la-z-boy.com/




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##### 



LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
 Second Quarter Ended(Unaudited, amounts in thousands, except per share data)
    
    10/25/08
    
    
    10/27/07Sales
    
    $
    331,948
    
    
    $
    365,434Cost of salesCost of goods sold
    
    
    242,681
    
    
    
    266,658Restructuring
    
    
    2,236
    
    
    
    518Total cost of sales
    
    
    244,917
    
    
    
    267,176Gross profit
    
    
    87,031
    
    
    
    98,258Selling, general and administrative
    
    
    101,942
    
    
    
    98,098Write-down of intangibles
    
    
    408
    
    
    
    5,809Restructuring
    
    
    687
    
    
    
    449Operating loss
    
    
    (16,006
    )
    
    
    (6,098
    )Interest expense
    
    
    1,651
    
    
    
    2,120Interest income
    
    
    630
    
    
    
    1,543Other expense, net
    
    
    685
    
    
    
    169Loss from continuing operations before income taxes
    
    
    (17,712
    )
    
    
    (6,844
    )Income tax expense/(benefit)
    
    
    36,032
    
    
    
    (3,192
    )Loss from continuing operations
    
    
    (53,744
    )
    
    
    (3,652
    )Loss from discontinued operations (net of tax)
    
    
    
    
    
    
    (6,282
    )Net loss
    
    $
    (53,744
    )
    
    $
    (9,934
    )Basic average shares
    
    
    51,458
    
    
    
    51,410Basic loss from continuing operations per share
    
    $
    (1.04
    )
    
    $
    (0.07
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    (0.12
    )Basic net loss per share
    
    $
    (1.04
    )
    
    $
    (0.19
    )Diluted average shares
    
    
    51,458
    
    
    
    51,410Diluted loss from continuing operations per share
    
    $
    (1.04
    )
    
    $
    (0.07
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    (0.12
    )Diluted net loss per share
    
    $
    (1.04
    )
    
    $
    (0.19
    )Dividends paid per share
    
    $
    0.04
    
    
    $
    0.12




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##### 



LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
 Six Months Ended(Unaudited, amounts in thousands, except per share data)
    
    10/25/08
    
    
    10/27/07Sales
    
    $
    653,600
    
    
    $
    709,830Cost of salesCost of goods sold
    
    
    477,795
    
    
    
    525,801Restructuring
    
    
    8,032
    
    
    
    3,079Total cost of sales
    
    
    485,827
    
    
    
    528,880Gross profit
    
    
    167,773
    
    
    
    180,950Selling, general and administrative
    
    
    193,781
    
    
    
    192,606Write-down of intangibles
    
    
    1,700
    
    
    
    5,809Restructuring
    
    
    1,467
    
    
    
    1,569Operating loss
    
    
    (29,175
    )
    
    
    (19,034
    )Interest expense
    
    
    3,146
    
    
    
    4,217Interest income
    
    
    1,562
    
    
    
    2,936Other expense, net
    
    
    541
    
    
    
    114Loss from continuing operations before income taxes
    
    
    (31,300
    )
    
    
    (20,429
    )Income tax expense/(benefit)
    
    
    30,988
    
    
    
    (8,235
    )Loss from continuing operations
    
    
    (62,288
    )
    
    
    (12,194
    )Loss from discontinued operations (net of tax)
    
    
    
    
    
    
    (6,434
    )Net loss
    
    $
    (62,288
    )
    
    $
    (18,628
    )Basic average shares
    
    
    51,443
    
    
    
    51,395Basic loss from continuing operations per share
    
    $
    (1.21
    )
    
    $
    (0.24
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    (0.12
    )Basic net loss per share
    
    $
    (1.21
    )
    
    $
    (0.36
    )Diluted average shares
    
    
    51,443
    
    
    
    51,395Diluted loss from continuing operations per share
    
    $
    (1.21
    )
    
    $
    (0.24
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    (0.12
    )Diluted net loss per share
    
    $
    (1.21
    )
    
    $
    (0.36
    )Dividends paid per share
    
    $
    0.08
    
    
    $
    0.24




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##### 



LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
 (Unaudited, amounts in thousands)
    
    10/25/08
    
    
    4/26/08Current assetsCash and equivalents
    
    $
    14,485
    
    
    $
    14,982Receivables, net
    
    
    196,804
    
    
    
    200,422Inventories, net
    
    
    167,113
    
    
    
    178,361Deferred income taxescurrent
    
    
    2,077
    
    
    
    12,398Other current assets
    
    
    28,045
    
    
    
    21,325Total current assets
    
    
    408,524
    
    
    
    427,488Property, plant and equipment, net
    
    
    164,244
    
    
    
    171,001Deferred income taxeslong term
    
    
    810
    
    
    
    26,922Goodwill
    
    
    45,533
    
    
    
    47,233Trade names
    
    
    9,006
    
    
    
    9,006Other long-term assets, net
    
    
    74,845
    
    
    
    87,220Total assets
    
    $
    702,962
    
    
    $
    768,870Current liabilitiesShort-term borrowings
    
    $
    7,000
    
    
    $
    Current portion of long-term debt
    
    
    10,164
    
    
    
    4,792Accounts payable
    
    
    58,348
    
    
    
    56,421Accrued expenses and other current liabilities
    
    
    88,964
    
    
    
    102,700Total current liabilities
    
    
    164,476
    
    
    
    163,913Long-term debt
    
    
    99,819
    
    
    
    99,578Deferred income taxeslong term
    
    
    6,406
    
    
    
    Other long-term liabilities
    
    
    51,462
    
    
    
    54,783Contingencies and commitments
    
    
    
    
    
    
    Shareholders equityCommon shares, $1 par value
    
    
    51,469
    
    
    
    51,428Capital in excess of par value
    
    
    203,489
    
    
    
    209,388Retained earnings
    
    
    131,371
    
    
    
    190,215Accumulated other comprehensive loss
    
    
    (5,530
    )
    
    
    (435
    )Total shareholders equity
    
    
    380,799
    
    
    
    450,596Total liabilities and shareholders equity
    
    $
    702,962
    
    
    $
    768,870




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##### 



LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
 Second Quarter Ended
    
    
    Six Months Ended(Unaudited, amounts in thousands)
    
    10/25/08
    
    
    10/27/07
    
    
    10/25/08
    
    
    10/27/07Cash flows from operating activitiesNet loss
    
    $
    (53,744
    )
    
    $
    (9,934
    )
    
    $
    (62,288
    )
    
    $
    (18,628
    )Adjustments to reconcile net loss to
cash provided by (used for) operating
activities
(Gain)/loss on sale of assets
    
    
    (604
    )
    
    
    (36
    )
    
    
    (2,670
    )
    
    
    16Loss on the sale of discontinued
operations (net
of tax)
    
    
    
    
    
    
    3,990
    
    
    
    
    
    
    
    3,990Write-down of businesses held for sale
(net of
tax)
    
    
    
    
    
    
    2,159
    
    
    
    
    
    
    
    2,159Write-down of intangibles
    
    
    408
    
    
    
    5,809
    
    
    
    1,700
    
    
    
    5,809Restructuring
    
    
    2,923
    
    
    
    967
    
    
    
    9,499
    
    
    
    4,648Provision for doubtful accounts
    
    
    4,797
    
    
    
    1,505
    
    
    
    9,000
    
    
    
    3,619Depreciation and amortization
    
    
    5,989
    
    
    
    6,093
    
    
    
    11,943
    
    
    
    12,313Stock-based compensation expense
    
    
    986
    
    
    
    1,001
    
    
    
    1,855
    
    
    
    1,862Change in receivables
    
    
    (22,261
    )
    
    
    (13,409
    )
    
    
    (8,091
    )
    
    
    9,188Change in inventories
    
    
    (63
    )
    
    
    15,323
    
    
    
    10,843
    
    
    
    9,252Change in payables
    
    
    8,375
    
    
    
    1,205
    
    
    
    1,927
    
    
    
    (14,268
    )Change in other assets and liabilities
    
    
    (2,893
    )
    
    
    4,484
    
    
    
    (26,525
    )
    
    
    (18,814
    )Change in deferred taxes
    
    
    41,677
    
    
    
    (4,671
    )
    
    
    42,838
    
    
    
    (6,146
    )Total adjustments
    
    
    39,334
    
    
    
    24,420
    
    
    
    52,319
    
    
    
    13,628Net cash provided by (used for) operating
activities
    
    
    (14,410
    )
    
    
    14,486
    
    
    
    (9,969
    )
    
    
    (5,000
    )Cash flows from investing activitiesProceeds from disposals of assets
    
    
    2,805
    
    
    
    867
    
    
    
    7,786
    
    
    
    7,282Proceeds from sale of discontinued
operations
    
    
    
    
    
    
    4,019
    
    
    
    
    
    
    
    4,019Capital expenditures
    
    
    (2,618
    )
    
    
    (5,970
    )
    
    
    (9,990
    )
    
    
    (15,599
    )Purchases of investments
    
    
    (3,516
    )
    
    
    (6,648
    )
    
    
    (8,965
    )
    
    
    (13,270
    )Proceeds from sales of investments
    
    
    5,233
    
    
    
    7,801
    
    
    
    11,027
    
    
    
    14,593Change in other long-term assets
    
    
    158
    
    
    
    365
    
    
    
    229
    
    
    
    385Net cash provided by (used for)
investing activities
    
    
    2,062
    
    
    
    434
    
    
    
    87
    
    
    
    (2,590
    )Cash flows from financing activitiesProceeds from debt
    
    
    24,831
    
    
    
    112
    
    
    
    39,466
    
    
    
    817Payments on debt
    
    
    (6,430
    )
    
    
    (338
    )
    
    
    (25,287
    )
    
    
    (1,238
    )Stock issued/canceled for stock and
employee benefit plans
    
    
    2
    
    
    
    (94
    )
    
    
    
    
    
    
    (116
    )Dividends paid
    
    
    (2,076
    )
    
    
    (6,232
    )
    
    
    (4,151
    )
    
    
    (12,441
    )Net cash provided by (used for)
financing activities
    
    
    16,327
    
    
    
    (6,552
    )
    
    
    10,028
    
    
    
    (12,978
    )Effect of exchange rate changes on cash
and equivalents
    
    
    (604
    )
    
    
    538
    
    
    
    (643
    )
    
    
    1,539Change in cash and equivalents
    
    
    3,375
    
    
    
    8,906
    
    
    
    (497
    )
    
    
    (19,029
    )Cash and equivalents at beginning of period
    
    
    11,110
    
    
    
    23,786
    
    
    
    14,982
    
    
    
    51,721Cash and equivalents at end of period
    
    $
    14,485
    
    
    $
    32,692
    
    
    $
    14,485
    
    
    $
    32,692Cash paid
(net of refunds) during period 
income taxes
    
    $
    (719
    )
    
    $
    758
    
    
    $
    204
    
    
    $
    3,893Cash paid during period  interest
    
    $
    1,287
    
    
    $
    1,495
    
    
    $
    2,413
    
    
    $
    3,405




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##### 



LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 Second Quarter Ended
    
    
    Six Months Ended10/25/08
    
    
    10/27/07
    
    
    10/25/08
    
    
    10/27/07(Unaudited, amounts in thousands)
    
    (13 weeks)
    
    
    (13 weeks)
    
    
    (26 weeks)
    
    
    (26 weeks)SalesUpholstery Group
    
    $
    247,934
    
    
    $
    269,749
    
    
    $
    485,052
    
    
    $
    524,506Casegoods Group
    
    
    48,473
    
    
    
    58,892
    
    
    
    96,594
    
    
    
    112,466Retail Group
    
    
    39,484
    
    
    
    46,163
    
    
    
    81,911
    
    
    
    91,394VIEs/Eliminations
    
    
    (3,943
    )
    
    
    (9,370
    )
    
    
    (9,957
    )
    
    
    (18,536
    )Consolidated
    
    $
    331,948
    
    
    $
    365,434
    
    
    $
    653,600
    
    
    $
    709,830Operating income (loss)Upholstery Group
    
    $
    8,118
    
    
    $
    19,036
    
    
    $
    17,975
    
    
    $
    27,903Casegoods Group
    
    
    755
    
    
    
    3,577
    
    
    
    2,132
    
    
    
    6,177Retail Group
    
    
    (10,391
    )
    
    
    (9,119
    )
    
    
    (20,401
    )
    
    
    (19,193
    )Corporate and Other*
    
    
    (11,157
    )
    
    
    (12,816
    )
    
    
    (17,682
    )
    
    
    (23,464
    )Intangible write-down
    
    
    (408
    )
    
    
    (5,809
    )
    
    
    (1,700
    )
    
    
    (5,809
    )Restructuring
    
    
    (2,923
    )
    
    
    (967
    )
    
    
    (9,499
    )
    
    
    (4,648
    )$
    (16,006
    )
    
    $
    (6,098
    )
    
    $
    (29,175
    )
    
    $
    (19,034
    )
 
 *
    
    Variable Interest Entities (VIEs) are included in corporate and other.