La-Z-Boy's Record Quarter

Plus, CarLotz closes stores.

Steven Lerner
Steven Lerner

Today is Wednesday, June 22, 2022.

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La-Z-Boy's Record Quarter

Shares of La-Z-Boy (NYSE: LZB) jumped 10.25% in after-hours trading on Tuesday after the furniture manufacturer posted positive financial earnings.

Financials: La-Z-Boy reported earnings per share of $1.07 and revenue of $684.5 million; both were better than expected.

Records Broken: Consolidated sales increased 32% in the quarter to a record $685 million and 36% for the full year to a record $2.4 billion. Retail segment sales increased 31% to $804 million for the full year. Meanwhile, Joybird sales grew 62% to a record $176 million. In the quarter, the retail segment experienced record operating profit and operating margin.

Catalyst: Despite volatility and global supply chain challenges, La-Z-Boy had a good quarter due to higher production, pricing, and surcharge actions.

Quote: “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.” - Melinda D. Whittington, President and CEO of La-Z-Boy.

Half Glass Empty: The company still expects demand to be volatile for the foreseeable future due to the effect of macroeconomics and geopolitical uncertainty on consumer sentiment.

Numbers: La-Z-Boy’s stock is down 38% so far in 2022.

Final Thoughts: La-Z-Boy’s successful quarter in the face of so many macro problems proves that investors may want to give furniture stocks another look.


Notable Earnings Today: KB Home (NYSE: KBH), Winnebago Industries (NYSE: WGO), Medicenna Therapeutics (Nasdaq: MDNA), H.B. Fuller (NYSE: FUL), Korn Ferry (NYSE: KFY), Worthington Industries (NYSE: WOR), Steelcase (NYSE: SCS).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Island Brands (StartEngine).

Notable Economic Events Today: Fed Chair Jerome Powell Testifies (9:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

CarLotz Closes 50% of Stores

A row of Mazda 3s at a dealership in Fairfax VA
Photo by Obi - @pixel6propix / Unsplash

Shares of CarLotz (Nasdaq: LOTZ) jumped 0.53% in after-hours trading on Tuesday after the used vehicle marketplace announced that it is closing 50% of its stores.

Details: The company will close 11 dealership stores “as part of a strategic review of the business, with cash preservation and future profitable growth as key determining factors.” This will also result in a workforce reduction of 25% to 30%.

Background: CarLotz has struggled to become profitable. These closures are expected to reduce loss from operations by $12 million to $13 million.

Numbers: The stock is down 80% in 2022 and down 95% since peaking in January last year.

Final Thoughts: The entire used car industry has been struggling as of late.

Bitcoin 2022’s First Half Review

The price of Bitcoin has fallen well below expectations so far in 2022.

Big Drop: Since reaching its peak last year, Bitcoin has lost 70% of its value. This year, the price is down 60%.

Bad Level: In June, Bitcoin dropped below the $20,000 level. It hasn’t reached that low since late 2020.

Final Thoughts: Yes, it was a rough start to the year for Bitcoin, but the rest of the year could be different. Bullish investors hope that Bitcoin’s price stabilizes in the second half of 2022.

Headwinds: BASF's business to face downturn in second half - CEO says (Reuters)

More Pressure: Activision Blizzard shareholders approve proposal for report on abuse and harassment (CNBC)

This Explains Everything: 'Enormous Outflows' From Largest Bitcoin ETF May Have Triggered BTC Crash (CoinDesk)

All In: Bankrupt Revlon’s Surge Draws Retail Investors as Trading Booms (Bloomberg)

Next Step: Twitter asks shareholders to approve the $44 billion Elon Musk takeover (TechCrunch)

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