La-Z-Boy Inc. shares rallied more than 11% in the extended session Tuesday after the furniture maker reported fiscal fourth-quarter earnings above Wall Street expectations and said it is focusing on its backlog and long lead times. La-Z-Boy said it earned $57.5 million, or $1.33 a share, compared with $37.5 million, or 81 cents a share, in the year-ago quarter. Adjusted for one-time items, the company earned $1.07. Sales rose 32% to a “record” $685 million, the company said. FactSet consensus called for earnings of 92 cents a share on sales of $665 million for La-Z-Boy. “In the near term, we remain focused on increasing our agility to work down our backlog and improve service to customers and consumers with shorter lead times,” the company said in a statement. “We expect our strong balance sheet and significant backlog will allow us to move through the current uncertain period and make important investments in our future as we deliver returns to all stakeholders.” The company guided for fiscal 2023 first-quarter revenue to be up between 7% and 10% versus as compared with the first quarter of fiscal 2022, in a range between $560 million and $575 million, and a consolidated non-GAAP operating margin in a range between 6.5% and 7.5%. “We expect current macroeconomic and geopolitical uncertainty and its effect on consumer sentiment will likely cause demand trends to remain volatile for the foreseeable future,” La-Z-Boy said, adding it was beginning to invest more in marketing to drive demand and improving the way it navigates supply-chain disruptions. La-Z-Boy stock ended the regular trading day down 2%.
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