La-Z-Boy Q4 2021 Earnings Report
Key Takeaways
La-Z-Boy reported strong Q4 fiscal year 2021 results with record sales and profits, driven by increased production capacity and excellent performance by company-owned La-Z-Boy Furniture Galleries stores. The company's written same-store sales doubled, and Joybird continued to grow with profitability.
Consolidated sales increased 41% to $519.5 million.
Written same-store sales for the entire La-Z-Boy Furniture Galleries® network doubled, increasing 100%.
GAAP EPS was $0.81 versus $0.05, and Non-GAAP EPS was $0.87 versus $0.49.
The company returned $50 million to shareholders through share repurchases and dividends.
La-Z-Boy
La-Z-Boy
La-Z-Boy Revenue by Segment
Forward Guidance
Demand trends remain strong across the business with backlog at record levels. The company anticipates ongoing incremental increases in manufacturing capacity throughout fiscal 2022 that will enable higher delivered sales, but expects ongoing global supply chain disruptions and headwinds related to raw materials and freight costs will cause some volatility in results.
Positive Outlook
- Demand trends remain strong across the business with backlog at record levels.
- The company anticipates ongoing incremental increases in manufacturing capacity throughout fiscal 2022 that will enable higher delivered sales.
- Incoming order rates and backlog will mitigate the usual seasonal slowdown associated with the first quarter.
- Prudent financial culture and strong cash position provide opportunities for investment in our next chapter of growth.
- Focused on continuing to increase capacity and deliver units while making investments in technology solutions across the company.
Challenges Ahead
- Ongoing global supply chain disruptions and headwinds related to raw materials and freight costs will cause some volatility in results.
- The company expects a temporary negative impact to profit margins versus very strong fourth-quarter results due to dramatic raw material price increases.
- Capacity in the first quarter is limited to 12 weeks of production/shipments to enable a shutdown week in July for maintenance for most of the company’s plants.
- Global supply chain disruptions
- Headwinds related to raw materials and freight costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income