On August 24, La-Z-Boy stock (NYSE:LZB) increased by almost 6% after the business announced financial results for the first fiscal quarter that were above analysts’ expectations.
Q1 non-GAAP EPS climbed +65.45% Y/Y to $0.90.
The annualized growth rate of consolidated sales was 15.11%, reaching $604.09 million. According to the corporation, the growth reflects their price and surcharge activities and the favorable benefits of their product and channel mix.
The Retail Segment’s sales climbed by over 30%, reaching $236.02 million, while same-store sales increased by 25%.
The Wholesale market saw a +12.28% increase in sales, totaling $441.82 million. La-Z-Boy noted that the increase was driven by realized pricing, surcharge actions, and favorable channel and product mix. This was partially offset by lower volume, primarily caused by external dealers temporarily delaying receipt of finished goods because of warehouse constraints. La-Z-Boy noted that the increase was driven by realized pricing, surcharge actions, and favorable channel and product mix.
“In the short term, our primary objective is to continue working through our backlog to increase delivered sales and improve customer service with shorter lead times that predate the epidemic. Our supply chain team is continuously working to enhance performance and cut down on start-up friction costs at our new operations in Mexico, with the goal of improving wholesale gross margins over time, “Melinda Whittington, President and Chief Executive Officer of La-Z-Boy, said.
Sales of Joybird delivered products climbed by 10%, reaching $43 million. According to La-Z-Boy, Joybird incurred a loss for the first quarter of 2018, which may be attributed to the company’s marketing spending and the increases in freight expenses and friction costs caused by the establishment of a second manufacturing site in Tijuana.
The company anticipates that Joybird will generate a profit for the entire financial year.
La-Z-Boy Stock Shares Financial Outlook
“While we continue to maintain our long-term commitment to steady sales growth and margin progress, we continue to anticipate that results may vary significantly during fiscal 2023 as a result of current industry dynamics as well as macroeconomic and geopolitical uncertainty and its effect on consumer sentiment,” said La-Z-Boy CFO Bob Lucian. “This is even though we maintain our long-term commitment to steady sales growth and margin progress.”
According to Lucian, La-Z-Boy stock anticipates that its delivered sales for FQ2 2023 will increase by 2% to 5% year over year and fall within the range of $590M to $605M. Additionally, the company anticipates that its consolidated non-GAAP operating margin will fall from 8.0% to 8.5%. The consensus estimate for revenue in FQ2 is $595 million.
La-Z-Boy stock also recently declared a $0.165 per share quarterly dividend.
Although it remains to be seen which way La-Z-Boy stock is headed in the long-term, the company’s financial outlook is encouraging indeed.
Featured Image: Wikimedia Commons ©Anthony92931
Author Shariq Khan 
