La-Z-Boy annual, quarterly profits surge
Jun. 15—MONROE — La-Z-Boy Inc., one of the nation's leading furniture makers, on Tuesday reported a fiscal 2021 profit of $106.5 million, or $2.30 a share, as it began restarting then expanding its manufacturing operations to meet increasing demand across all of its business units.
Sales for fiscal 2021 totaled $1.73 billion, compared with $1.704 billion in fiscal 2020. Its fiscal 2020 profit was $77.5 million, or $1.66 a share.
The Michigan-based company, which makes the iconic La-Z-Boy recliner and other residential furniture, started its fiscal year in May 2020 just as the coronavirus pandemic and lockdowns were rolling across the country.
But post-pandemic demand in many economic sectors has been surging. For fiscal 2021, two Wall Street analysts that follow La-Z-Boy had a consensus estimate that full year profits would be $2.50 a share and revenues would reach $1.71 billion, according to Zacks Investment Research.
La-Z-Boy exceeded both predictions.
Melinda Whittington, company president and chief executive officer, said that despite an extremely difficult year marked by the pandemic, economic uncertainty, and supply chain disruptions, La-Z-Boy delivered strong results.
"Our start to the fiscal year in May 2020 came as the world was still in the early stages of its Covid-19 response. We had just restarted our plants after a month-long shutdown and retailers were slowly beginning to reopen. Progressing strongly from that starting point, for the fiscal 2021 full year, we delivered ...[an] operating margin of 9 percent, generated $310 million in cash from operations, and returned $61 million to shareholders through share repurchases and dividends," the CEO said.
Also, the company expanded production capacity, enhanced its retail platform, acquired the La-Z-Boy Furniture Galleries stores in Seattle, and turned a profit with its Joybird furniture operations.
"All business units are experiencing record demand, demonstrating the strength of our brands in the marketplace combined with fantastic execution from all retail and sales teams," Ms. Whittington said.
The company said it had record sales in the fiscal fourth quarter that led to all-time record profits.
For the quarter, profits totaled $37.5 million, or 81 cents a share, compared with $2.3 million, or a nickel a share, a year earlier. Analysts had predicted 75 cents a share, according to Zacks.
Sales for the fourth quarter were $519.4 million, compared with $367.3 million a year earlier.
La-Z-Boy did not report its earnings until after stock markets had closed. On the New York Stock exchange Tuesday, its stock lost 21 cents to close at $42.28 a share.
