La-Z-Boy bucks retail slowdown with strong Q1 earnings
Yahoo Finance Live anchors discuss first-quarter earnings for La-Z-Boy.
Video Transcript
JULIE HYMAN: Yeah, so if we have the picture of the consumer, we've got Nordstrom, we've got Toll Brothers. What about La-Z-Boy? What do we make of this one? The stock is moving 6% higher this morning after La-Z-Boy reported first quarter earnings, topping expectations on both the top and bottom lines. Delivered sales up by 30% to an all-time quarterly record of $236 million.
And the company says, in the current quarter, sales will rise by 2% to 5% here. Now, the CFO of the company did sort of couch all of this and say that they were going to perhaps see some volatility and variability in the numbers during fiscal 2023. But still, this was a pretty good quarter.
BRIAN SOZZI: I'm just shocked by this quarter, just given what we've heard from every single retailer.
JULIE HYMAN: Yeah, exactly.
BRIAN SOZZI: You had home furnishings week at Walmart and Target. You had consumers pulling back on higher end purchases, discretionary purchases at Nordstrom. But here you have La-Z-Boy noting at their retail segment, which is their retail stores, delivered sales up 30% to an all-time quarterly record. And then their wholesale business, where they sell to other retailers, those sales up 12%, which is, I mean, it's mind-boggling. It doesn't fit with any of the narratives we've been hearing this month.
BRAD SMITH: Isn't this the second consecutive quarter, though, that we've had a narrative from La-Z-Boy that didn't fit with the rest of the furnishing segment, if you will? Joybird, their sales increased by about 12% there. And so for Joybird--
JULIE HYMAN: And La-Z-Boy-- La-Z-Boy owns Joybird?
BRAD SMITH: Yeah.
JULIE HYMAN: Oh, I forgot about that.
BRIAN SOZZI: Is this stuff just extra comfy? Are we missing something here?
JULIE HYMAN: Well, Joybird is like more millennial, more GenZ. It's more mid-century modern-looking.
BRAD SMITH: Like the CB2 of La-Z-Boy.
JULIE HYMAN: Yes, exactly. It's much hipper than what you think of as the traditional La-Z-Boy.
BRIAN SOZZI: So where you shop. You got [INAUDIBLE].
BRAD SMITH: I got all my furniture--
JULIE HYMAN: He goes to Urban, he goes to Joybird.
[INTERPOSING VOICES]
BRIAN SOZZI: I went to Bob's for my L couch. I thought I did all right.
BRAD SMITH: Yeah, but Bob's Discount, hey, hey, don't sleep on Bob's. Or sleep on Bob's furniture.
BRIAN SOZZI: I do. This Friday, I love my couch.
