La-Z-Boy delivers record first quarter

Upholstery manufacturer La-Z-Boy Incorporated has reported a record first quarter as sales surpassed $600m.

According to its latest trading update ended 30 July 2022, Q1 sales increased 15% to $604m from $524.7m, with retail segment sales up 30% to $236m and wholesale revenues rising 12% to $442m.

La-Z-Boy said the growth reflected pricing and surcharge actions and the positive effects of product and channel mix.

The company said that operating profit and operating margin were also all-time first quarter records, with net income resulting at $38.9m, up from $25.2m.

Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, said: “While we maintain our long-term commitment to steady sales growth and margin progress, we continue to anticipate results may vary significantly during fiscal 2023 as a result of current industry dynamics as well as macroeconomic and geopolitical uncertainty and its effect on consumer sentiment.

“Taking all known factors into consideration, we expect delivered sales for the fiscal 2023 second quarter to be up 2% to 5% versus the second quarter of fiscal 2022, in a range of about $590 million to $605 million, and consolidated non-GAAP operating margin to be in a range of about 8.0% to 8.5%.”

Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy, added: “In the near term, we remain focused on working down our backlog to drive delivered sales and enhance service to customers with shorter, pre-pandemic lead times. Our supply chain team continues to improve results and reduce start-up friction costs at our new plants in Mexico to strengthen wholesale gross margins over time.

“At the same time, we have increased our marketing spend to pre-pandemic levels to increase traffic and conversion and support the equity of our brands. With a strong balance sheet, we have the means to make prudent investments in our business and we expect to deliver enhanced long-term returns to all stakeholders.”

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