NYSE$LZB

La-Z-Boy Incorporated · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

La-Z-Boy reported record sales for the fiscal 2022 second quarter and sequential operating margin improvement.

La-Z-Boy Incorporated reported record-high sales for the quarter, increasing capacity to service demand and realizing pricing and surcharge actions to offset rising raw material costs. The company delivered strong results, including improved margins versus the last quarter, despite navigating a challenging operating environment with supply chain disruption.

  • Consolidated sales increased 25% to $576 million.
  • GAAP EPS increased to $0.89 versus $0.75 in the prior-year quarter.
  • Non-GAAP EPS increased to $0.85 versus $0.82 in the prior-year quarter.
  • The Board of Directors declared a quarterly cash dividend of $0.165 per share, an increase of 10% over the prior quarter.

Headline financials

Total Revenue

$576M

Previous: $459M+25.4%
EPS (adj)

$0.85

Previous: $0.82+3.7%
Capital Expenditures

-$33.3M

Previous: -$15.4M-115.7%
Free Cash Flow

-$17.9M

Previous: $180M-109.9%
Net Income

$39.5M

Previous: $34.9M+13.1%
Operating Income

$54.1M

Previous: $47.9M+12.9%
Gross Profit

$223M

Previous: $201M+11.3%
Cash & Equivalents

$293M

Previous: $351M-16.4%
Total Assets

$1.85B

Previous: $1.65B+12.2%
Stock-Based Comp

$3.89M

Previous: $4.12M-5.5%

Revenue & EPS history

La-Z-Boy · Revenue · Quarterly

$576M

Q2 2022+25.4%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

La-Z-Boy · $677M total across 3 segments · Q2 2022

  • Wholesale Segment
    $439M+28.0%
  • Retail Segment
    $192M+18.6%
  • Corporate and Other
    $45M+33.5%

Forward guidance

Demand trends remain strong, backlog is high, and delivered sales are expected to continue to strengthen, particularly in the fourth quarter as new production cells come online. Expects continued supply chain disruptions, including a temporary slowdown in the casegoods business due to COVID-related shutdowns in Vietnam. Expects to deliver full-year consolidated operating margin at or near double digits.

Tailwinds

  • Demand trends remain strong.
  • Backlog is high.
  • Delivered sales are expected to continue to strengthen.
  • New production cells are coming online.
  • Expects to deliver full-year consolidated operating margin at or near double digits.

Headwinds

  • Expects continued supply chain disruptions.
  • A temporary slowdown in our casegoods business due to COVID-related shutdowns in Vietnam.
  • Quarterly trends will be impacted by our third and fourth quarters containing 12 and 14 production weeks, respectively, compared to 13 production weeks in our second quarter.
  • Significant widespread supply chain disruption
  • Navigating a challenging operating environment

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 2022

Historical avgQ2 2022

+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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