La-Z-Boy (LZB) - Get LaZBoy Incorporated Report said Tuesday that rising shipping and materials costs have forced it to impose surcharges on pending dealer orders as it reported a lower-than-expected profit but stronger-than-expected revenue for the latest quarter.
In the fiscal 2022 first quarter ended July 24, the company reported net income attributable to La-Z-Boy of $24.57 million, or 54 cents a share, up from $4.8 million, or 10 cents a share, last year.
The FactSet analyst consensus called for 56 cents in the latest quarter.
Revenue totaled a quarterly record of $524.78 million, up 84% from the pandemic-depressed total of $285.46 million a year ago.
Analysts estimated revenue of $485.9 million for the latest quarter.
La-Z-Boy recently stood at $34.30, up 0.3% in after-hours trading. The stock has slumped 14% in the six months through Tuesday’s close.
"While we increased our production capacity in the period, we also continue to navigate our way through a volatile environment, including rapidly escalating commodity and freight costs, which have not shown signs of abating,” said Chief Executive Melinda D. Whittington.
“To mitigate these historic rising costs, we took additional pricing actions in the quarter and, for the first time, imposed a surcharge on pending dealer orders in our backlog to help mitigate these significant cost increases in the near term."
Chief Financial Officer Bob Lucian said, "With the initiatives we are executing, we expect margin performance to begin to improve in the second quarter, finishing the full fiscal year with a consolidated non-GAAP operating margin at or near double digits.
“Over the last two quarters, we returned $79 million in value to our shareholders through share repurchases.”