La-Z-Boy Inc. (ticker: LZB), a leading manufacturer and retailer of home furnishings, has demonstrated its resilience amidst the global health crisis. Despite challenges posed by the COVID-19 pandemic, the company was able to maintain stable sales, reporting $2.35 billion for the fiscal year ended April 29, 2023 – a marginal decrease compared to the $2.36 billion recorded for the fiscal year ended April 30, 2022.
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Adapting Business Model to Maintain Stability
The stability in sales can be attributed to the company’s ability to adapt its business model during uncertain times, particularly by evaluating the appropriateness of the discounted cash flow model and ensuring the accuracy of underlying data. La-Z-Boy also utilized reasonable management assumptions related to sales and operating income projections, in alignment with external market and industry data. As a result, the company reported an operating income of $211.4 million in 2023, a slight increase compared to the $206.8 million recorded in 2022.
During the same period, La-Z-Boy witnessed a drop in net income attributable to the company, with $150.7 million in 2023 compared to $150.0 million in 2022. However, this dip can be considered minor in light of the unprecedented challenges faced by the global economy.
Healthy Cash Levels and Financial Feasibility
One of the most significant accomplishments for La-Z-Boy during this period was its ability to maintain a healthy level of cash and equivalents. At the end of the fiscal year 2023, the company reported $343.4 million in cash and equivalents, compared to $245.6 million in 2022. This positive trend indicates that the company has managed to stay financially feasible during the pandemic, allowing it to continue investing in its growth and expansion.
Consolidated Balance Sheet Highlights
The company’s consolidated balance sheet reveals other positive aspects of its financial performance. For example, La-Z-Boy’s total liabilities have declined from around $1.93 billion in 2022 to approximately $1.87 billion in 2023, while total equity has increased from $819.6 million to $952.1 million during the same period. This improvement in financial standing can be linked to the company’s strategic business decisions and efficient management of resources.
Investments in Infrastructure and Growth Initiatives
In terms of property, plant, and equipment, La-Z-Boy registered a net value of around $278.6 million in 2023, compared to $253.1 million in 2022. This increase suggests continued investment in the company’s infrastructure and growth initiatives. At the same time, the company saw a slight decline in inventories, which was reduced from $303.2 million in 2022 to $276.3 million in 2023. This reduction might be attributed to effective inventory management techniques employed by the company to minimize surplus stock and associated costs.
Embracing Digital Transformation and E-commerce
La-Z-Boy’s financial statements also highlight the role of digital transformation and e-commerce in the company’s success. In recent years, the company acquired Joybird, an e-commerce retailer and manufacturer of upholstered furniture. The addition of Joybird to its portfolio has enabled La-Z-Boy to tap into the lucrative online retail market, further contributing to its stability during the pandemic.
Conclusion
In conclusion, La-Z-Boy Inc. has shown great resilience in the face of the COVID-19 pandemic, maintaining stable sales and adapting to the evolving market landscape. The company’s continued investment in growth and expansion, combined with its ability to make strategic business decisions and innovate, position it as a formidable competitor in the home furnishing industry. Despite the ongoing challenges of the global economy, La-Z-Boy Inc. is well-equipped to navigate uncertain times and hold its own in an ever-changing landscape.
Income Statement
Financials in millions USD. Fiscal year is May – April. source
| Year | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 – 1997 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 2349.43 | 2356.81 | 1734.24 | 1703.98 | 1745.4 | 1583.95 | 1520.06 | 1525.4 | 1425.4 | 1357.32 | Upgrade |
| 1 | Revenue Growth (YoY) | -0.31% | 35.90% | 1.78% | -2.37% | 10.19% | 4.20% | -0.35% | 7.02% | 5.02% | 6.55% | Upgrade |
| 2 | Cost of Revenue | 1340.73 | 1440.84 | 993.98 | 982.54 | 1042.83 | 961.2 | 910.76 | 940.42 | 920.9 | 892.86 | Upgrade |
| 3 | Gross Profit | 1008.7 | 915.97 | 740.26 | 721.45 | 702.57 | 622.75 | 609.3 | 584.98 | 504.49 | 464.45 | Upgrade |
| 4 | Selling, General & Admin | 797.26 | 709.21 | 603.52 | 575.82 | 572.9 | 493.38 | 475.96 | 459.65 | 401.33 | 375.16 | Upgrade |
| 5 | Other Operating Expenses | 0 | 0 | 0 | 26.86 | 0 | 0 | 2.51 | 0 | 0 | 0 | Upgrade |
| 6 | Operating Expenses | 797.26 | 709.21 | 603.52 | 602.68 | 572.9 | 493.38 | 478.47 | 459.65 | 401.33 | 375.16 | Upgrade |
| 7 | Operating Income | 211.44 | 206.76 | 136.74 | 118.76 | 129.67 | 129.37 | 130.83 | 125.33 | 103.17 | 89.3 | Upgrade |
| 8 | Interest Expense / Income | 0.54 | 0.9 | 1.39 | 1.29 | 1.54 | 0.54 | 1.07 | 0.49 | 0.52 | 0.55 | Upgrade |
| 9 | Other Expense / Income | 6.39 | 2.68 | -9.5 | 3.81 | 34.37 | 0.67 | 0.08 | 1.51 | -5.09 | 2.31 | Upgrade |
| 10 | Pretax Income | 204.51 | 203.18 | 144.85 | 113.66 | 93.76 | 128.16 | 129.68 | 123.33 | 107.73 | 86.44 | Upgrade |
| 11 | Income Tax | 53.85 | 53.16 | 38.38 | 36.19 | 25.19 | 47.3 | 43.76 | 44.08 | 36.95 | 31.38 | Upgrade |
| 12 | Net Income | 150.66 | 150.02 | 106.46 | 77.47 | 68.57 | 80.87 | 85.92 | 79.25 | 70.77 | 55.06 | Upgrade |
| 13 | Net Income Growth | 0.43% | 40.91% | 37.42% | 12.97% | -15.20% | -5.88% | 8.42% | 11.98% | 28.55% | 18.68% | Upgrade |
| 14 | Shares Outstanding (Basic) | 43 | 44 | 46 | 46 | 47 | 48 | 49 | 50 | 52 | 52 | Upgrade |
| 15 | Shares Outstanding (Diluted) | 43 | 44 | 46 | 47 | 47 | 48 | 49 | 51 | 52 | 54 | Upgrade |
| 16 | Shares Change | -2.38% | -4.47% | -0.79% | -1.26% | -1.67% | -2.70% | -2.55% | -3.02% | -2.76% | 0.27% | Upgrade |
| 17 | EPS (Basic) | 3.49 | 3.41 | 2.31 | 1.67 | 1.46 | 1.69 | 1.75 | 1.57 | 1.36 | 1.04 | Upgrade |
| 18 | EPS (Diluted) | 3.48 | 3.39 | 2.30 | 1.66 | 1.44 | 1.67 | 1.73 | 1.55 | 1.34 | 1.02 | Upgrade |
| 19 | EPS Growth | 2.65% | 47.39% | 38.55% | 15.28% | -13.77% | -3.47% | 11.61% | 15.67% | 31.37% | 20.00% | Upgrade |
| 20 | Free Cash Flow Per Share | 3.16 | 0.06 | 5.91 | 2.55 | 2.19 | 1.67 | 2.61 | 1.79 | 0.32 | 1.09 | Upgrade |
| 21 | Dividend Per Share | 0.693 | 0.630 | 0.360 | 0.540 | 0.500 | 0.460 | 0.420 | 0.360 | 0.280 | 0.200 | Upgrade |
| 22 | Dividend Growth | 10.00% | 75.00% | -33.33% | 8.00% | 8.70% | 9.52% | 16.67% | 28.57% | 40.00% | 150.00% | Upgrade |
| 23 | Gross Margin | 42.93% | 38.86% | 42.68% | 42.34% | 40.25% | 39.32% | 40.08% | 38.35% | 35.39% | 34.22% | Upgrade |
| 24 | Operating Margin | 9.00% | 8.77% | 7.88% | 6.97% | 7.43% | 8.17% | 8.61% | 8.22% | 7.24% | 6.58% | Upgrade |
| 25 | Profit Margin | 6.41% | 6.37% | 6.14% | 4.55% | 3.93% | 5.11% | 5.65% | 5.20% | 4.97% | 4.06% | Upgrade |
| 26 | Free Cash Flow Margin | 5.80% | 0.10% | 15.68% | 6.94% | 5.86% | 5.01% | 8.40% | 5.89% | 1.15% | 4.21% | Upgrade |
| 27 | Effective Tax Rate | 26.33% | 26.17% | 26.50% | 31.84% | 26.86% | 36.90% | 33.74% | 35.74% | 34.30% | 36.31% | Upgrade |
| 28 | EBITDA | 321.75 | 316.79 | 244.83 | 213.81 | 126.45 | 160.47 | 159.88 | 150.34 | 130.53 | 110.17 | Upgrade |
| 29 | EBITDA Margin | 13.69% | 13.44% | 14.12% | 12.55% | 7.24% | 10.13% | 10.52% | 9.86% | 9.16% | 8.12% | Upgrade |
| 30 | Depreciation & Amortization | 116.7 | 112.71 | 98.59 | 98.87 | 31.15 | 31.77 | 29.13 | 26.52 | 22.28 | 23.18 | Upgrade |
| 31 | EBIT | 205.05 | 204.08 | 146.24 | 114.95 | 95.3 | 128.7 | 130.75 | 123.82 | 108.25 | 86.99 | Upgrade |
| 32 | EBIT Margin | 8.73% | 8.66% | 8.43% | 6.75% | 5.46% | 8.13% | 8.60% | 8.12% | 7.59% | 6.41% | Upgrade |
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