MONROE, Mich. – La-Z-Boy reported record consolidated first quarter sales of $604 million and record first quarter operating income of $52.6 million.
Consolidated sales during the quarter ended July 30, rose 15% from $524.8 million in the same period last year, while operating profits rose 53% from $34.4 million.
Net income during the quarter rose 57% to $38.5 million, or 89 cents per share, from $24.6 million, or 54 cents per share.
Sales in its retail segment rose 30% to $236 million, from $181.8 million, an all-time quarterly record. Operating income in the retail segment totaled $38.1 million, up from $20.4 million, an 87% increase.
Written same-store sales for company owned La-Z-Boy Furniture Galleries fell 15%, which the company said reflected typical summer period activity along with consumer sentiment from “macroeconomic and geopolitical concerns.” It also noted that written same-store sales were 12% higher than pre-pandemic levels.
Sales in its wholesale segment rose to $441.8 million, up 12.2% from the $393.5 million reported the same period last year, another first quarter record. Operating income in the wholesale segment rose to $26.1 million, from $18.3 million, up 43%.
The Joybird segment reported delivered sales of $43 million, up 10%, while written sales rose 12% from a year ago, which the company said was supported by improved web conversion, average order value and average sales price. The division posted a small loss during the quarter, which the company said represented continued investments in marketing and increased freight costs along with costs of opening a second manufacturing plant in Tijuana. The company said it expects Joybird to be profitable for the full year.
Commenting on the quarterly results, President and CEO Melinda D. Whittington said, “We delivered excellent results for the quarter, amidst challenging trends for the global economy and the furniture industry. We are focused on navigating the near-term volatile environment with agility while strengthening our business for the long term with our Century Vision strategy. This quarter, we further built our iconic La-Z-Boy brand with the acquisition of five La-Z-Boy Furniture Galleries stores in the Denver market, and our Joybird brand with the opening of two new Joybird retail stores.”
She added that in the near term, the company remains focused on reducing its backlog to drive delivered sales and “enhance service to customers with shorter, pre-pandemic lead times.”
“Our supply chain team continues to improve results and reduce start-up friction costs at our new plants in Mexico to strengthen wholesale gross margins over time,” she said. “At the same time, we have increased our marketing spend to pre-pandemic levels to increase traffic and conversion and support the equity of our brands. With a strong balance sheet, we have the means to make prudent investments in our business and we expect to deliver enhanced long-term returns to all stakeholders.”