Upholstery manufacturer La-Z-Boy Incorporated has reported a strong third quarter.
According to its latest trading update ended 28 January 2023, Q3 sales increased 0.2% to $572.7m from $571.5m, with retail segment sales up 27% to $251m and wholesale revenues at $408m, down 4%. Net income resulted at $31.5m, up from $29m.
Commenting on the results, Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy Incorporated, said: “We again delivered excellent results driven by productivity gains throughout our supply chain and superb performance in our company-owned Retail segment. During the quarter, we worked down the majority of our excess backlog, getting close to normal lead times, and continued to invest in marketing to increase awareness and consideration of the La-Z-Boy brand. I am particularly pleased with our positive written sales trends in our Retail stores, driven by strong execution of our value proposition — comfortable custom furniture with quick delivery.
“Across La-Z-Boy, we are capitalizing on and investing in our brand heritage of comfort. We’re honing our messaging, investing in targeted marketing, sharpening price points, and ensuring strong execution. As we move through this uncertain economic environment, we will continue to employ agility, a consumer-first focus, and our strong financial position to make smart investments to drive capability and brand reach. I am confident we will emerge stronger and capture increased market share.”
Looking ahead, Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, added: “As we have essentially worked down our backlog to pre-pandemic levels, we anticipate that Q4 delivered sales will be at levels consistent with what we write, consistent with historical seasonality, and almost 20% above pre-pandemic. We estimate delivered sales for the fiscal 2023 fourth quarter to be in a range of $525 million to $545 million, and consolidated non-GAAP operating margin to be in a range of 7% to 9%.”