Wholesale upholstery segment revenue, the main contributor to the company's sales, rose 3.4 percent to $280.3 million.

S&P Equity Research raised La-Z-Boy to "hold" from "sell" and said rising sales in the upholstery segment offset weak conditions at casegoods and retail.

Sales in the company's key upholstery segment fell 6 percent, but the segment's operating margin rose to 10.9 percent from 3.4 percent last year.

Sales in the company's upholstery segment rose 7 percent to $241.4 million, while retail delivered sales were up 34 percent to $52.7 million.

The Company's segments include the Upholstery segment, the Casegoods segment and the Retail segment.

Upholstery segment sales sank 30 percent, while wood furniture sales fell 20 percent, hurt by cancellations or postponements of orders from large dealers.