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La-Z-Boy Revenue Surges in Fiscal Fourth Quarter

Furniture maker sees supply chain disruptions, raw materials costs hitting profit margins.
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La-Z-Boy  (LZB) - Get Report shares were little changed in after-hours trading Tuesday, after the furniture company posted stronger-than-expected results.

For the fiscal 2021 fourth quarter ended April 24, revenue gained 41% to $519.5 million from $367.3 million in the pandemic-stricken quarter a year ago. The FactSet analyst consensus called for $498.5 million in the latest quarter.

Net income registered $37.96 million, or 81 cents a share, in the latest quarter, up from $3.38 million, or 5 cents a share, last year. Analysts expected profit of 73 cents a share in the latest quarter.

Adjusted profit totaled 87 cents in the latest quarter, up from 49 cents a year earlier. The analyst consensus called for 74 cents in the latest quarter.

In a statement, the company said it "expects ongoing global supply chain disruptions and headwinds related to raw materials and freight costs will cause some volatility in results. In the short term, the company expects a temporary negative impact to profit margins versus very strong fourth-quarter results due to dramatic raw material price increases."

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La-Z-Boy stood at $42, down 0.66% in after-hours trading. The stock has climbed 8% over the last six months.

In other retail news Tuesday, May retail sales slowed more than expected, data from the Commerce Department indicated, as the impact of stimulus from the American Rescue Act continued to fade, and prices rose at the fastest pace in more than 10 years.

May retail sales fell 1.3% from last month at a collective $620.2 billion, the Commerce Department said, well shy of the Street consensus forecast of a 0.8% decline.

The April total, however, was revised to higher, to a gain of 0.9%. Stripping out auto and gasoline sales, May retail sales were down 0.8%, the Commerce Department report noted.

Last month, The Street.com founder Jim Cramer offered his approach to retailers Nordstrom  (JWN) - Get Report, Urban Outfitters  (URBN) - Get Report and Dick's Sporting Goods  (DKS) - Get Report.

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