La-Z-Boy Provides Business Update for Fiscal 2021 Q3
Strong Written Orders Drive Record Backlog;
COVID-19-Related Production Constraints Impact Delivered Sales;
Dividend Rate to be Increased
- Wholesale backlog across the enterprise increased by more than 20% in the fiscal 2021 third quarter from the fiscal 2021 second quarter
- Written same-store sales for the La-Z-Boy Furniture Galleries® network increased 19% fiscal year to date through December versus the prior-year period and continued to trend positively in January
- Written sales for Joybird increased by more than 75% in the fiscal 2021 third quarter versus the prior-year period
Darrow continued, “We are optimistic about the business moving forward given ongoing strong demand trends, backlog and the new production capacity being brought on to service orders. However, our ability to increase production capacity has been constrained in the short term due to greater-than-anticipated impacts of COVID-19 across our supply chain as we prioritize the health and safety of employees. While we have encountered near-term supply chain challenges, they will be remedied over time as we continue to focus on working safely across our operations, servicing customers, and delivering strong financial results.”
Compared with a record third quarter in fiscal 2020 and factoring in greater-than-anticipated COVID-19-related impacts experienced in this year’s third quarter, the company expects consolidated sales for the quarter to be down 1% - 2% versus prior-year third quarter, and consolidated non-GAAP operating margin to be at the low end of the 9% - 11% range that was previously projected for the third quarter.
In addition, the company announced today that its Board of Directors has approved a planned
Fiscal 2021 Third-Quarter Results Announcement
The company plans to release its fiscal 2021 third-quarter financial results after the close of market on
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections, perspectives, or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, business, and industry and the effect of the novel coronavirus (“COVID-19”) pandemic on our business operations, including without limitation production capacity, and financial results.
The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control, such as the continuing and developing impact of, and uncertainty caused by, the COVID-19 pandemic. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our fiscal 2020 Annual Report on Form 10-K and other factors identified in our reports filed with the
This news release is just one part of La-Z-Boy’s financial disclosures and should be read in conjunction with other information filed with the
The corporation’s branded distribution network is dedicated to selling
Non-GAAP Financial Measures
This press release references the Non-GAAP financial measure of “Non-GAAP operating margin.” We are providing this update at this time to provide transparency to our investors during the COVID-19 pandemic. Non-GAAP operating margin may exclude items such as pre-tax purchase accounting charges and pre-tax business realignment charges. These and other not presently determinable items could have a material impact on the determination of operating margin on a GAAP basis and as not available at this time without unreasonable efforts, we have not provided a reference to GAAP operating margin or a reconciliation to Non-GAAP operating margin in this press release. This Non-GAAP financial measure is not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Management believes that presenting certain Non-GAAP financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers.
Source: La-Z-Boy Incorporated