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La-Z-Boy Inc. said late Tuesday that its quarterly sales reached a record, but so did the backlog for its recliners and other pieces as the furniture company struggles to keep up with demand amid supply disruptions and “dramatic” raw-material price increases.
La-Z-Boy
LZB,
said it earned $37.5 million, or 81 cents a share, in the fiscal fourth quarter, compared with $2.3 million, or 5 cents a share, in the year-ago quarter. Adjusted for one-time items, the company said it earned 87 cents a share.
Sales rose 41% to $520 million, the company said.
Analysts polled by FactSet expected La-Z-Boy to report adjusted EPS of 74 cents on sales of $499 million.
Record sales “led to all-time record profits” and fiscal 2022 “is off to a great start with continued robust written order rates and a record backlog, setting us up well for a strong year of shipments ahead,” Chief Executive Melinda Whittington said in a statement.
La-Z-Boy said it expects to be able to increase its manufacturing capacity and increase sales, but “ongoing global supply chain disruptions and headwinds related to raw materials and freight costs will cause some volatility in results” during the year.
“In the short term, the company expects a temporary negative impact to profit margins versus very strong fourth-quarter results due to dramatic raw material price increases which will only be offset by previously announced pricing actions as the company works through its backlog in the back half of the year,” it said.
Shares of La-Z-Boy ended the regular trading day down 0.5%.
