‘Dinner and a Movie At Home’ Trend Lifts Chefs’ Warehouse, La-Z-Boy

As much as airlines and hospitality sector players have reported brisk bookings from consumers eager to get out and go somewhere this summer, the present mix of economic factors is also having a rekindling effect on the nesting trend that surged during the pandemic.

With spiraling food and gasoline prices fueling a level of inflation and lost buying power, the financial appeal of simple luxuries like “dinner and a movie at home” continue to be a good fit for the countless households facing an unprecedented struggle to make ends meet.

“Strength in customer demand along with our team’s ability to merchandise the world’s finest ingredients with just in time service continues to drive solid financial performance, despite a challenging supply chain and food inflationary environment,” Chefs’ Warehouse Chairman and CEO Christopher Pappas said in a Wednesday (June 22) press release.

In announcing its increased full-year sales outlook, the Connecticut-based specialty retailer pointed to “current trends in its business and the outlook for the remainder of 2022,” as well as its intention to leverage investments in talent, capacity expansion, tech and operations.

Prior to today’s business update, shares of Chefs’ Warehouse have dramatically outperformed the markets and the sector, with its stock up 2% year to date compared to 20 and 30 percent respective declines this year for the S&P 500 and the S&P Retail Index ETF (XRT).

Get Comfortable

At the same time, an overnight report from furniture retailer La-Z-Boy saw the Michigan-based business catching investors by surprise with record revenues that rose 32% for the three months ended April 30, as well as record sales, operating profit, and operating margins at its retail unit, and 40% growth at its Joybird brand that it acquired in 2019.

In speaking with investors on a conference call Wednesday morning, La-Z-Boy President and CEO Melinda Whittington addressed what she saw as a dynamic and volatile year marked by strong consumer demand for home furnishings and called the latest earnings “phenomenal results in challenging times.”

“All in, these are great results in a volatile environment … driven by the strength of our consumer brands, our vast distribution network, and strong demand for home furnishing,” Whittington said.

La-Z-Boy’s Q4 results come on the heels of its “Century Vision” it unveiled last month, a five-year growth plan that is aligned with the company’s 100th anniversary in 2027 and aimed to outpace the broader home furnishing industry.

Specifically, La-Z-Boy said it plans to reinvigorate the brand via a greater focus on consumers and an expanded reach. Among the new initiatives, the company said it planned to add more small-format urban stores for its Joybird unit to accelerate growth and brand awareness, as well as a company-wide effort to improve eCommerce and omnichannel presence and increase its supply chain agility.

In keeping with the budding ‘dinner and a movie’ theme, La-Z-Boy said it also plans to tell its own “brand comfort story” in a bid to increase appeal to younger consumers.