La-Z-Boy Incorporated (NYSE:LZB) stock rose 8.40% (As on June 22, 11:14:53 AM UTC-4,Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Consolidated non-GAAP operating margin was 9.4% versus 10.0% in the prior-year fourth quarter. Operating margin for the current-year period was impacted by raw material inflation and plant inefficiencies related to increasing manufacturing capacity, partially offset by pricing and surcharge actions, and fixed-cost leverage on higher volume. Joybird delivered sales increased 40% (+30% adjusting for the 53rd week) to a record $53 million in the fiscal 2022 fourth quarter compared with the same quarter last year. Joybird written sales increased 3% in the fiscal 2022 fourth quarter compared with the prior-year quarter. Joybird profit for the quarter increased versus the prior-year period, reflecting an improved gross margin and continued increased marketing investments as the company builds brand awareness while continuing to increase web conversion, retail store traffic, average order value and average sales price
LZB in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.07, beating the analysts’ estimates for the adjusted earnings per share of 92 cents. The company had reported the adjusted revenue growth of 32 percent to $685 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $664.91 million. Retail segment sales increased 20% to $233 million.
Additionally, for fiscal 2022, the company generated $79 million in cash from operating activities, after investing $72 million in higher inventory levels to protect against supply chain disruptions and to support increased production and delivered sales. The company continued to make disciplined investments in the business, including $77 million in capital expenditures for the year, primarily related to store remodels, new upholstery manufacturing capacity in Mexico, plant upgrades, and technology upgrades. La-Z-Boy ended fiscal 2022 with $249 million in cash compared with $395 million in cash at the end of fiscal 2021. The company holds $27 million in investments to enhance returns on cash versus $32 million at the end of fiscal 2021.
The company expects delivered sales for the fiscal 2023 first quarter to be up 7% to 10% versus the first quarter of fiscal 2022, in a range of $560 million to $575 million, and consolidated non-GAAP operating margin to be in a range of 6.5% to 7.5%.