La-Z-Boy UK sales down due to backlog reduction

The UK division of upholstery manufacturer La-Z-Boy Incorporated has reported a decline in sales due to decreased backlog against previous years.

According to its latest filed accounts for the year ended 27 April 2024, total sales fell 35% to £25.3m from £38.8m in 2023.

Pre-tax profit resulted at £3m, down from its profit of £3.8m recorded in the previous year. Gross margin was 24.8% compared to 18.1% year-on-year.

Stated within its report, the company said: “We have seen a decline in turnover year-on-year of 35%. The decline in turnover compared with the previous fiscal year was a direct result of the historic backlog of orders we experienced during our 2022 fiscal year which led into our 2023 fiscal year.

“Supply chain issues previously experienced had resulted in extremely high transportation and logistics costs and those costs began to normalise later in our 2023 fiscal year. As a result, in our 2024 fiscal year we were able to deliver a slight improvement in gross margin as those costs were slightly lower.”

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