Why La-Z-Boy Shares Are Falling In Tuesday's After-Hours Session

La-Z-Boy Incorporated LZB shares are trading lower by 12.2% at $32.01 during Tuesday's after-hours session after the company reported third-quarter earnings results.

La-Z-Boy reported third-quarter EPS of 65 cents. Sales of $571.57 million beat the analyst consensus estimate of $559.59 million.

Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy, said, "During our third quarter, we delivered a strong 22% increase in consolidated sales versus the prior-year period. Demand continues unabated across the La-Z-Boy enterprise and remains well above pre-pandemic levels. Additionally, we returned $32 million to shareholders through dividends and share repurchases, bringing our year-to-date returns to an all-time high level. While delivering an improved top line, the quarter was marked by greater-than-expected supply chain volatility, which had significant near-term impact on the efficiency of our manufacturing capacity ramp plans, dampening delivered sales growth and profit margins."

"A shortage of component parts, record levels of COVID absenteeism in January, and the challenge of hiring and training new employees at manufacturing facilities all contributed to the issues we faced as the quarter progressed. Additionally, a 14-week COVID-related shutdown in Vietnam temporarily and dramatically impacted sales and profitability for our casegoods import business, with minimal product available to ship to customers and high freight costs," Whittington stated.

La-Z-Boy has a 52-week high of $46.74 and a 52-week low of $31.92.