NYSE$LZB

La-Z-Boy Incorporated · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

La-Z-Boy reported strong Q2 2021 results due to record demand and increased production capacity.

La-Z-Boy Incorporated reported a 2.7% increase in consolidated sales to $459.1 million for the second quarter of fiscal 2021. The company's GAAP operating margin increased to 10.4%, and non-GAAP operating margin improved to 11.1%. Strong demand and increased production capacity contributed to the positive results.

  • Consolidated sales increased by 2.7% to $459.1 million.
  • Written same-store sales for the La-Z-Boy Furniture Galleries network increased by 34%.
  • GAAP diluted EPS was $0.75, while non-GAAP diluted EPS was $0.82.
  • The company generated $196 million in cash from operating activities year-to-date and ended the quarter with $353 million in cash.

Headline financials

Total Revenue

$459M

Previous: $447M+2.7%
EPS (adj)

$0.82

Previous: $0.52+57.7%
Capital Expenditures

-$15.4M

Previous: -$22.9M+32.7%
Free Cash Flow

$180M

Previous: $30.8M+486.2%
Net Income

$34.9M

Previous: $22.6M+54.6%
Operating Income

$47.9M

Previous: $29.6M+62.0%
Gross Profit

$201M

Previous: $182M+10.0%
Cash & Equivalents

$351M

Previous: $118M+198.5%
Total Assets

$1.65B

Previous: $1.39B+18.5%
Stock-Based Comp

$4.12M

Previous: $3.03M+35.9%

Revenue & EPS history

La-Z-Boy · Revenue · Quarterly

$459M

Q2 2021+2.7%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

La-Z-Boy · $539M total across 3 segments · Q2 2021

  • Wholesale Segment
    $343M-2.1%
  • Retail Segment
    $162M
  • Corporate and Other
    $33.7M

Forward guidance

La-Z-Boy expects strong results in the second half of fiscal 2021, with consolidated sales growth in the third quarter expected to be flat to 4% above the prior year's record-high third quarter. Fourth-quarter sales growth is anticipated to be 40% to 45% versus the prior-year quarter, and the company expects to deliver a historically high consolidated operating margin of approximately 9% to 11% for the balance of the year, presuming there are no COVID-19-related shutdowns or other unexpected external disruptions.

Tailwinds

  • Strength of brands and vast distribution network driving strong written order trends.
  • Supply chain team making great progress to increase capacity.
  • Expectation to continue to significantly increase production capacity throughout the balance of the fiscal year.
  • Anticipated fourth-quarter sales growth of 40% to 45% versus the prior-year quarter.
  • Expectation to deliver a historically high consolidated operating margin of approximately 9% to 11% for the balance of the year.

Headwinds

  • Extreme uncertainty with respect to the pandemic.
  • Risk of COVID-19-related shutdowns affecting operations moving forward.
  • Risk of ongoing disruption within the global supply chain, such as the polyurethane foam issue.
  • Potential impact of COVID-19-related shutdowns on the company's operations.
  • Potential impact of ongoing disruption within the global supply chain, such as with polyurethane foam.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.0%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-1.1%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+21.8%

Q2 2012

Best reaction

-19.9%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+15.3%+13.4%
Q3 2026-6.8%-7.0%-16.8%
Q2 2026+20.2%+24.7%+33.1%
Q1 2026-12.1%-6.4%-13.8%
Q4 2025-2.3%-5.6%-4.9%
Q3 2025+4.0%-0.7%-15.2%
Q2 2025+0.0%+2.1%-0.6%
Q1 2025-5.8%-4.0%+2.4%
Q4 2024+20.7%+12.4%+26.5%
Q3 2024-5.1%-2.9%-2.2%
Q2 2024+11.9%+15.4%+17.4%
Q1 2024-2.8%-4.1%+3.1%
Q4 2023+0.0%+1.1%+15.4%
Q3 2023+9.7%+13.8%-2.1%
Q2 2023-6.3%-8.2%-14.2%
Q1 2023+3.1%-3.9%-16.6%
Q4 2022+5.7%+8.5%+17.1%
Q3 2022-15.0%-18.8%-17.5%
Q2 2022-6.8%-2.9%-2.8%
Q1 2022-5.8%-1.6%-7.0%
Q4 2021-12.1%-13.4%-18.8%
Q3 2021-7.7%-4.6%+8.5%
Q2 2021+5.1%+4.6%+7.1%
Q1 2021+1.0%-0.9%-0.4%
Q4 2020-1.3%-5.4%+3.1%
Q3 2020+2.1%+4.1%-44.2%
Q2 2020-15.3%-11.0%-14.4%
Q1 2020-5.8%-0.8%+2.2%
Q4 2019+7.3%-10.2%-6.7%
Q3 2019+14.6%+14.3%+4.1%
Q2 2019+5.9%+5.5%-2.6%
Q1 2019+15.6%+2.8%-0.6%
Q4 2018-4.2%-10.1%-2.3%
Q3 2018+9.1%+10.7%+1.4%
Q2 2018+12.7%+14.9%+6.8%
Q1 2018-19.9%-22.6%-18.9%
Q4 2017+17.4%+18.5%+19.4%
Q3 2017-2.4%-7.9%-5.0%
Q2 2017+3.1%+11.4%+13.9%
Q1 2017-9.6%-10.0%-13.2%
Q4 2016+5.2%+5.0%+14.0%
Q3 2016+17.0%
Q2 2016-0.1%
Q1 2016+2.1%
Q4 2015-1.8%
Q3 2015-5.5%
Q2 2015+5.5%
Q1 2015-3.8%
Q4 2014-3.3%
Q3 2014-3.5%
Q2 2014+10.1%
Q1 2014+7.6%
Q4 2013+3.7%
Q3 2013+11.7%
Q2 2013-10.9%
Q1 2013-1.7%
Q4 2010-11.8%
Q4 2012-11.8%
Q3 2011-0.9%
Q3 2012-0.9%
Q2 2011+21.8%
Q2 2012+21.8%
Q1 2012+8.5%
Q4 2011+8.5%
Q1 2011+7.0%
Q3 2010+18.8%

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