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Jan 23, 2021

La-Z-Boy Q3 2021 Earnings Report

Reported solid results for the third quarter of fiscal year 2021, driven by strong written orders and a dividend increase.

Key Takeaways

La-Z-Boy Incorporated reported a decrease in consolidated sales by 1.2% to $470.2 million, but experienced a 6.3% increase in written same-store sales for the La-Z-Boy Furniture Galleries® network. GAAP EPS was $0.62, while non-GAAP EPS was $0.74. The company's cash position more than doubled to $393 million, and the dividend was increased to $0.15 per share.

Consolidated sales decreased 1.2% to $470.2 million driven by temporary supply chain impacts from COVID-19.

Written same-store sales for the entire La-Z-Boy Furniture Galleries® network increased 6.3%.

GAAP EPS was $0.62 versus $0.74, while Non-GAAP EPS was $0.74 versus $0.72.

Cash more than doubled to $393 million at quarter end.

Total Revenue
$470M
Previous year: $476M
-1.2%
EPS
$0.74
Previous year: $0.72
+2.8%
Gross Profit
$201M
Previous year: $200M
+0.8%
Cash and Equivalents
$390M
Previous year: $166M
+134.8%
Free Cash Flow
$42.8M
Previous year: $53.5M
-20.0%
Total Assets
$1.74B
Previous year: $1.44B
+20.6%

La-Z-Boy

La-Z-Boy

La-Z-Boy Revenue by Segment

Forward Guidance

La-Z-Boy expects fiscal 2021 fourth-quarter consolidated sales growth of 34% to 39% versus the prior-year quarter, and consolidated non-GAAP operating margin at the lower end of the 9% to 11% range.

Positive Outlook

  • Expected consolidated sales growth of 34% to 39% in Q4 2021.

Challenges Ahead

  • Continued temporary impacts of COVID-19 on manufacturing facilities and broader supply chain.
  • Consolidated non-GAAP operating margin expected at the lower end of the 9% to 11% range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income