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Oct 24, 2020
La-Z-Boy Q2 2021 Earnings Report
La-Z-Boy reported strong Q2 2021 results due to record demand and increased production capacity.
Key Takeaways
La-Z-Boy Incorporated reported a 2.7% increase in consolidated sales to $459.1 million for the second quarter of fiscal 2021. The company's GAAP operating margin increased to 10.4%, and non-GAAP operating margin improved to 11.1%. Strong demand and increased production capacity contributed to the positive results.
Consolidated sales increased by 2.7% to $459.1 million.
Written same-store sales for the La-Z-Boy Furniture Galleries network increased by 34%.
GAAP diluted EPS was $0.75, while non-GAAP diluted EPS was $0.82.
The company generated $196 million in cash from operating activities year-to-date and ended the quarter with $353 million in cash.
Revenue by Segment
Forward Guidance
La-Z-Boy expects strong results in the second half of fiscal 2021, with consolidated sales growth in the third quarter expected to be flat to 4% above the prior year's record-high third quarter. Fourth-quarter sales growth is anticipated to be 40% to 45% versus the prior-year quarter, and the company expects to deliver a historically high consolidated operating margin of approximately 9% to 11% for the balance of the year, presuming there are no COVID-19-related shutdowns or other unexpected external disruptions.
Positive Outlook
- Strength of brands and vast distribution network driving strong written order trends.
- Supply chain team making great progress to increase capacity.
- Expectation to continue to significantly increase production capacity throughout the balance of the fiscal year.
- Anticipated fourth-quarter sales growth of 40% to 45% versus the prior-year quarter.
- Expectation to deliver a historically high consolidated operating margin of approximately 9% to 11% for the balance of the year.
Challenges Ahead
- Extreme uncertainty with respect to the pandemic.
- Risk of COVID-19-related shutdowns affecting operations moving forward.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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