La-Z-Boy, which ranked #13 in the FDMC 300 ranking of the top woodworking manufacturers, reported strong sales that exceed pre-pandemic levels for the quarter but said that supply chain issues and COVID-related labor shortages have hurt production resulting in extended delivery times. 

Melinda D. Whittington, president and CEO of La-Z-Boy, said that during its third quarter, the company delivered a 22% increase in consolidated sales versus the prior-year period and that demand continues “unabated across the La-Z-Boy enterprise and remains well above pre-pandemic levels. Overall, La-Z-Boy said it earned $28.5 million, or 65 cents a share, in the quarter, compared with $29.2 million, or 63 cents a share, in the year-ago quarter. Sales rose to $572 million from $470 million a year ago. 

“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,” she said. “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.”

She added that 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 said that the company’s “number one priority” is to improve the agility of its supply chain, which especially hurts the company during a high-demand environment.

Delayed orders are still being measured in months as opposed to weeks with reports of as many as 9-month delays.