La-Z-Boy Incorporated Reports Solid First Quarter Results with Sales Up 3%; First Quarter Operating Cash Flow Doubles to $52 Million
La-Z-Boy reported a 3% increase in sales for Q1 FY2025, reaching $496 million. The Wholesale segment saw a 5% sales growth, while Retail segment sales increased 4% despite a 3% decline in same-store sales. The GAAP operating margin was 6.5%, and diluted EPS was $0.61. Non-GAAP operating margin stood at 6.6%, with a Non-GAAP EPS of $0.62.
Operating cash flow doubled to $52 million from the prior year's first quarter. However, the GAAP operating income decreased by 6% to $32.4 million and GAAP net income dropped by 5% to $26.2 million. The company returned about $42 million to shareholders, including $34 million in share repurchases and $8 million in dividends.
For Q2 FY2025, La-Z-Boy expects sales between $495-$515 million and a Non-GAAP operating margin between 6-7%. CEO Melinda Whittington highlighted the company's strategic investments and strong execution amidst a challenging macroeconomic backdrop.
La-Z-Boy ha riportato un aumento del 3% delle vendite per il primo trimestre dell'anno fiscale 2025, raggiungendo $496 milioni. Il segmento all'ingrosso ha registrato una crescita delle vendite del 5%, mentre le vendite del segmento al dettaglio sono aumentate del 4%, nonostante un calo del 3% delle vendite nei negozi comparabili. Il margine operativo GAAP era del 6,5%, e l'EPS diluito era di $0,61. Il margine operativo non GAAP si è attestato al 6,6%, con un EPS non GAAP di $0,62.
Il flusso di cassa operativo è raddoppiato a $52 milioni rispetto al primo trimestre dell'anno precedente. Tuttavia, il reddito operativo GAAP è diminuito del 6% a $32,4 milioni e il reddito netto GAAP è sceso del 5% a $26,2 milioni. L'azienda ha restituito circa $42 milioni agli azionisti, di cui $34 milioni in riacquisti di azioni e $8 milioni in dividendi.
Per il secondo trimestre dell'anno fiscale 2025, La-Z-Boy prevede vendite tra $495 e $515 milioni e un margine operativo non GAAP compreso tra il 6 e il 7%. L'Amministratore Delegato Melinda Whittington ha evidenziato gli investimenti strategici dell'azienda e l'ottima esecuzione in un contesto macroeconomico difficile.
La-Z-Boy reportó un aumento del 3% en ventas para el primer trimestre del año fiscal 2025, alcanzando $496 millones. El segmento mayorista vio un crecimiento del 5% en ventas, mientras que las ventas del segmento minorista aumentaron un 4% a pesar de una disminución del 3% en las ventas en tiendas comparables. El margen operativo GAAP fue del 6,5%, y el EPS diluido fue de $0,61. El margen operativo no GAAP se situó en el 6,6%, con un EPS no GAAP de $0,62.
El flujo de caja operativo se duplicó a $52 millones en comparación con el primer trimestre del año anterior. Sin embargo, el ingreso operativo GAAP disminuyó un 6% a $32,4 millones y el ingreso neto GAAP cayó un 5% a $26,2 millones. La compañía devolvió alrededor de $42 millones a los accionistas, incluidos $34 millones en recompra de acciones y $8 millones en dividendos.
Para el segundo trimestre del año fiscal 2025, La-Z-Boy espera ventas entre $495 y $515 millones y un margen operativo no GAAP entre 6-7%. La CEO Melinda Whittington destacó las inversiones estratégicas de la compañía y la fuerte ejecución en un entorno macroeconómico desafiante.
La-Z-Boy는 2025 회계연도 1분기 매출이 3% 증가하여 4억 9천 6백만 달러에 달했다고 보고했습니다. 도매 부문은 5% 매출 증가를 보였으며, 소매 부문 매출은 동일 매장 매출이 3% 감소했음에도 불구하고 4% 증가했습니다. GAAP 운영 마진은 6.5%였고, 희석된 EPS는 $0.61였습니다. 비-GAAP 운영 마진은 6.6%로, 비-GAAP EPS는 $0.62였습니다.
운영 현금 흐름은 전년 1분기 대비 $5200만 달러로 두 배 증가했습니다. 그러나 GAAP 운영 소득은 6% 감소하여 $3240만 달러가 되었고 GAAP 순이익은 5% 감소하여 $2620만 달러로 떨어졌습니다. 회사는 약 $4200만 달러를 주주에게 환원했으며, 여기에는 $3400만 달러의 자사주 매입과 $800만 달러의 배당금이 포함됩니다.
2025 회계연도 2분기 동안 La-Z-Boy는 $495-$515 백만 달러의 매출을 예상하며 비-GAAP 운영 마진은 6-7% 사이일 것으로 보입니다. CEO Melinda Whittington은 어려운 거시 경제 환경 속에서 회사의 전략적 투자와 강력한 실행을 강조했습니다.
La-Z-Boy a rapporté une augmentation de 3% des ventes pour le premier trimestre de l'année fiscale 2025, atteignant 496 millions de dollars. Le secteur de gros a vu une croissance des ventes de 5%, tandis que les ventes du secteur de détail ont augmenté de 4%, malgré une baisse de 3% des ventes en magasins comparables. La marge opérationnelle GAAP était de 6,5%, et l'EPS dilué était de 0,61 $. La marge opérationnelle non GAAP s'élevait à 6,6%, avec un EPS non GAAP de 0,62 $.
Le flux de trésorerie opérationnel a doublé à 52 millions de dollars par rapport au premier trimestre de l'année précédente. Toutefois, le revenu opérationnel GAAP a diminué de 6% à 32,4 millions de dollars et le revenu net GAAP a chuté de 5% à 26,2 millions de dollars. L'entreprise a restitué environ 42 millions de dollars aux actionnaires, dont 34 millions de dollars en rachats d'actions et 8 millions de dollars en dividendes.
Pour le deuxième trimestre de l'année fiscale 2025, La-Z-Boy s'attend à des ventes entre 495 et 515 millions de dollars et une marge opérationnelle non GAAP entre 6 et 7%. La PDG Melinda Whittington a souligné les investissements stratégiques de l'entreprise et la forte exécution dans un contexte macroéconomique difficile.
La-Z-Boy meldete im ersten Quartal des Geschäftsjahres 2025 einen Umsatzanstieg von 3% auf 496 Millionen USD. Der Großhandelsbereich verzeichnete ein Umsatzwachstum von 5%, während die Umsätze im Einzelhandel um 4% stiegen, trotz eines Rückgangs der Same-Store-Umsätze um 3%. Die GAAP-Betriebsrendite betrug 6,5%, und der verwässerte EPS lag bei 0,61 USD. Der Nicht-GAAP-Betriebsrendite betrug 6,6%, während der Nicht-GAAP-EPS bei 0,62 USD lag.
Der operative Cashflow verdoppelte sich im Vergleich zum Vorjahresquartal auf 52 Millionen USD. Der GAAP-Betriebsgewinn sank jedoch um 6% auf 32,4 Millionen USD und der GAAP-Nettoertrag fiel um 5% auf 26,2 Millionen USD. Das Unternehmen gab etwa 42 Millionen USD an die Aktionäre zurück, darunter 34 Millionen USD für Aktienrückkäufe und 8 Millionen USD in Dividenden.
Für das zweite Quartal des Geschäftsjahres 2025 erwartet La-Z-Boy einen Umsatz zwischen 495 und 515 Millionen USD sowie eine Nicht-GAAP-Betriebsrendite von 6-7%. CEO Melinda Whittington hob die strategischen Investitionen des Unternehmens und die starke Umsetzung in einem herausfordernden makroökonomischen Umfeld hervor.
- Sales increased by 3% to $496 million.
- Wholesale segment sales grew by 5%.
- Retail segment sales increased by 4%.
- Operating cash flow doubled to $52 million.
- Non-GAAP operating margin stood at 6.6%.
- Returned $42 million to shareholders.
- GAAP operating income decreased by 6% to $32.4 million.
- GAAP net income dropped by 5% to $26.2 million.
- GAAP operating margin decreased to 6.5% from 7.2%.
- Written same-store sales declined by 3%.
Insights
La-Z-Boy's Q1 FY2025 results show resilience in a challenging market. The 3% increase in consolidated sales to
The Wholesale segment's 5% sales growth is encouraging, driven by higher external customer volume. The Retail segment faces headwinds with a 3% decrease in written same-store sales, reflecting broader industry challenges. Joybird's 9% increase in written sales shows potential in the e-commerce space.
The company's strong balance sheet with
La-Z-Boy's performance reflects broader trends in the furniture industry. The company's outperformance of industry benchmarks in May and June suggests effective strategies in a challenging market. However, the softening of trends towards the end of the quarter and industry-wide 3% decline in written same-store sales indicate persistent consumer spending headwinds.
The company's focus on improving conversion rates and design average ticket sales in its Retail segment shows adaptability. The 7% compound annual sales growth in Retail over the past five years is impressive, but current traffic trends pose challenges.
La-Z-Boy's strategy of expanding through new stores and acquisitions in a tough market could position it well for future growth. However, the success of this approach will depend on the timing and strength of industry recovery, which remains uncertain given current macroeconomic conditions.
Fiscal 2025 First Quarter Highlights:
- Consolidated delivered sales of
$496 million - Up
3% versus prior year
- Up
- Wholesale segment sales increased
5% on growth to external customers - Delivered sales and Non-GAAP(1) operating margin in line with guidance
- GAAP diluted EPS of
$0.61 - Non-GAAP(1) diluted EPS of
$0.62
- Non-GAAP(1) diluted EPS of
- Generated
$52 million in operating cash flow for the quarter
MONROE, Mich., Aug. 20, 2024 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported first quarter results for the period ended July 27, 2024. For the quarter, sales totaled
Written sales remained steady, with first quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) up
Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We continue to deliver positive results amidst a challenging macroeconomic backdrop. We were pleased to return to delivered sales growth in the quarter, led by our Wholesale segment, which benefited from higher delivered volume supported by Century Vision's channel expansion strategy. While the Retail business currently continues to wrestle with depressed traffic trends experienced across our industry, we again delivered strong execution. Conversion rates and design average ticket sales both improved again year-over-year and our in-store teams remain laser focused on providing the highest level of customer service and showcasing our industry leading product assortment. Over the past five years, our Retail business has grown at an impressive
Whittington added, “We remain committed to investing in our business for the long term, as we navigate the near-term headwinds in the furniture industry. As an iconic brand with a storied near 100-year history, we have the proven ability to adapt, with a strong balance sheet to support our strategy. Near-term market disruptions are likely to continue pressuring the fiscal year, but we are well positioned to disproportionately benefit when industry tailwinds re-emerge. With our Century Vision strategy, we are actively investing in growing our core Retail segment through strengthening in-store execution, opening new stores, and acquiring independent La-Z-Boy Furniture Galleries® stores when we are able, as we believe our vertically integrated model offers superior returns over the longer term. This will uniquely position us to continue to outperform the industry and grow share.”
Second Quarter Outlook:
Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, said, “The overall macroeconomic and consumer spending environment remains challenging. Despite this, we delivered on our guidance and saw modest sales growth in line with our outlook. Looking forward, our industry will remain under pressure in the near term as the market contends with still high interest rates, muted housing turnover, and an uncertain economic and geopolitical environment. Considering these factors, we expect sales in the second quarter of fiscal 2025 to improve modestly versus the first quarter supported by seasonality. Further, we continue to invest in our Century Vision strategy and build the business for the long term. As such, we expect fiscal second quarter sales to be in the range of
Key Results:
| (Unaudited, amounts in thousands, except per share data and percentages) | Quarter Ended | ||||||||||
| 7/27/2024 | 7/29/2023 | Change | |||||||||
| Sales | $ | 495,532 | $ | 481,651 | 3 | % | |||||
| GAAP operating income | 32,370 | 34,526 | (6 | )% | |||||||
| Non-GAAP operating income | 32,764 | 33,751 | (3 | )% | |||||||
| GAAP operating margin | 6.5 | % | 7.2 | % | (70) bps | ||||||
| Non-GAAP operating margin | 6.6 | % | 7.0 | % | (40) bps | ||||||
| GAAP net income attributable to La-Z-Boy Incorporated | 26,159 | 27,479 | (5 | )% | |||||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated | 26,453 | 26,945 | (2 | )% | |||||||
| Diluted weighted average common shares | 42,564 | 43,333 | |||||||||
| GAAP diluted earnings per share | $ | 0.61 | $ | 0.63 | (3 | )% | |||||
| Non-GAAP diluted earnings per share | $ | 0.62 | $ | 0.62 | — | % | |||||
Liquidity Measures:
| Quarter Ended | Quarter Ended | |||||||||||||||
| (Unaudited, amounts in thousands) | 7/27/2024 | 7/29/2023 | (Unaudited, amounts in thousands) | 7/27/2024 | 7/29/2023 | |||||||||||
| Free Cash Flow | Cash Returns to Shareholders | |||||||||||||||
| Operating cash flow | $ | 52,318 | $ | 25,913 | Share repurchases | $ | 33,673 | $ | 10,007 | |||||||
| Capital expenditures | (15,620 | ) | (13,457 | ) | Dividends | 8,371 | 7,852 | |||||||||
| Free cash flow | $ | 36,698 | $ | 12,456 | Cash returns to shareholders | $ | 42,044 | $ | 17,859 | |||||||
| (Unaudited, amounts in thousands) | 7/27/2024 | 7/29/2023 | ||||
| Cash and cash equivalents | $ | 342,270 | $ | 336,434 | ||
| Restricted cash | — | 3,816 | ||||
| Total cash, cash equivalents and restricted cash | $ | 342,270 | $ | 340,250 | ||
Fiscal 2025 First Quarter Results versus Fiscal 2024 First Quarter:
- Consolidated sales in the first quarter of Fiscal 2025 increased
3% to$496 million versus last year, primarily driven by higher delivered volume within our Wholesale segment - Consolidated GAAP operating margin was
6.5% versus7.2% - Consolidated Non-GAAP(1) operating margin decreased 40 basis points to
6.6% versus7.0% , due to reduced fixed cost leverage in Retail, partially offset by gross margin expansion
- Consolidated Non-GAAP(1) operating margin decreased 40 basis points to
- GAAP diluted EPS decreased to
$0.61 from$0.63 and Non-GAAP(1) diluted EPS totaled$0.62 versus$0.62 last year in the comparable period
Retail Segment:
- Sales:
- Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased
4% with growth from acquired and new stores, more than offsetting lower same-store sales compared to the year ago period- Written same-store sales decreased
3% , driven by lower traffic and softer industry-wide demand, partially offset by strong execution that drove higher conversion rates
- Written same-store sales decreased
- Delivered sales decreased
3% to$202 million versus last year, as the prior year benefited from the delivery of residual backlog related to component shortages
- Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased
- Operating Margin:
- GAAP operating margin and GAAP operating income was
10.2% and$21 million , versus14.1% and$29 million , respectively- Non-GAAP(1) operating margin and Non-GAAP(1) operating income were
10.3% and$21 million , down 380 basis points and29% , respectively, driven by fixed cost deleverage on lower delivered sales and fixed cost increases supporting our long-term strategy of growing our Retail business through new and acquired stores
- Non-GAAP(1) operating margin and Non-GAAP(1) operating income were
- GAAP operating margin and GAAP operating income was
Wholesale Segment:
- Sales:
- Sales increased
5% to$351 million , primarily due to higher delivered volume to our external customers, partially offset by lower intercompany sales to our Retail segment and lowered delivered volume in our casegoods business
- Sales increased
- Operating Margin:
- GAAP operating margin was
6.8% versus7.0% - Non-GAAP(1) operating margin increased to
6.9% , up 10 basis points from the year ago period driven by gross margin expansion primarily from lower input costs (reduced commodity prices, improved sourcing, and favorable duty expense) partially offset by channel mix related to higher non-La-Z-Boy Furniture Galleries® delivered sales
- Non-GAAP(1) operating margin increased to
- GAAP operating margin was
Corporate & Other:
- Joybird written sales increased
9% and delivered sales decreased3% to$35 million - Joybird operating performance again made meaningful progress against the prior comparable period as the brand focuses on balancing sales growth and profitability
Balance Sheet and Cash Flow, Fiscal 2025 First Quarter:
- Ended the quarter with
$342 million in cash(3) and no external debt - Generated
$52 million in cash from operating activities versus$26 million in last year's first quarter - Invested
$16 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels), and upgrades at our manufacturing facilities and market showrooms - Returned approximately
$42 million to shareholders, including$34 million in share repurchases and$8 million in dividends
Dividend:
On August 20, 2024, the Board of Directors declared a quarterly cash dividend of
Conference Call:
La-Z-Boy will hold a conference call with the investment community on Wednesday, August 21, 2024, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 598802.
The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at https://lazboy.gcs-web.com/. A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 51039. The webcast replay will be available for one year.
Investor Relations Contact:
Mark Becks, CFA, (734) 457-9538
mark.becks@la-z-boy.com
About La-Z-Boy:
La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers.
The Retail segment consists of 188 company-owned La-Z-Boy Furniture Galleries® stores, and is part of a broader network of over 350 La-Z-Boy Furniture Galleries® that, with La-Z-Boy.com, serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for its Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: https://www.la-z-boy.com/.
Notes:
(1)Non-GAAP amounts for the first quarter of fiscal 2025 exclude:
- purchase accounting charges related to acquisitions completed in prior periods totaling
$0.4 million pre-tax, or$0.01 per diluted share, all included in operating income
Non-GAAP amounts for the first quarter of fiscal 2024 exclude:
- a
$1.0 million pre-tax, or$0.02 per diluted share, gain related to the closure of the Torreón, MX facility, primarily reflecting the termination of the associated lease - purchase accounting charges related to acquisitions completed in prior periods totaling
$0.3 million pre-tax, or$0.01 per diluted share, with$0.3 million included in operating income and a de minimis amount included in interest expense
(2)This reference to Non-GAAP operating margin for a future period is a Non-GAAP financial measure. We have not provided a reconciliation of Non-GAAP operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts.
Please refer to the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures: Segment Information” for detailed information on calculating the Non-GAAP financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.
(3)Cash includes cash, cash equivalents and restricted cash.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.
The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2024 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.
Non-GAAP Financial Measures:
In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), this press release also includes Non-GAAP financial measures. Management uses these Non-GAAP financial measures when assessing our ongoing performance. This press release contains references to Non-GAAP operating income (on a consolidated basis and by segment), Non-GAAP operating margin (on a consolidated basis and by segment), and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share, Non-GAAP diluted earnings per share (and components thereof, including Non-GAAP income before income taxes and Non-GAAP net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges and purchase accounting charges. The supply chain optimization charges include a lease termination gain and costs related to the relocation of equipment and inventory resulting from the closure of our Torreón manufacturing facility (previously disclosed as Mexico optimization). The purchase accounting charges include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, and fair value adjustments of future cash payments recorded as interest expense. These Non-GAAP financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such Non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.
Management believes that presenting certain Non-GAAP financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, supply chain optimization charges are dependent on the timing, size, number and nature of the operations being closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented.
| LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF INCOME | ||||||||
| Quarter Ended | ||||||||
| (Unaudited, amounts in thousands, except per share data) | 7/27/2024 | 7/29/2023 | ||||||
| Sales | $ | 495,532 | $ | 481,651 | ||||
| Cost of sales | 282,189 | 275,923 | ||||||
| Gross profit | 213,343 | 205,728 | ||||||
| Selling, general and administrative expense | 180,973 | 171,202 | ||||||
| Operating income | 32,370 | 34,526 | ||||||
| Interest expense | (210 | ) | (122 | ) | ||||
| Interest income | 4,424 | 3,056 | ||||||
| Other income (expense), net | (618 | ) | 556 | |||||
| Income before income taxes | 35,966 | 38,016 | ||||||
| Income tax expense | 9,162 | 10,090 | ||||||
| Net income | 26,804 | 27,926 | ||||||
| Net (income) attributable to noncontrolling interests | (645 | ) | (447 | ) | ||||
| Net income attributable to La-Z-Boy Incorporated | $ | 26,159 | $ | 27,479 | ||||
| Basic weighted average common shares | 42,052 | 43,239 | ||||||
| Basic net income attributable to La-Z-Boy Incorporated per share | $ | 0.62 | $ | 0.64 | ||||
| Diluted weighted average common shares | 42,564 | 43,333 | ||||||
| Diluted net income attributable to La-Z-Boy Incorporated per share | $ | 0.61 | $ | 0.63 | ||||
| LA-Z-BOY INCORPORATED CONSOLIDATED BALANCE SHEET | ||||||||
| (Unaudited, amounts in thousands, except par value) | 7/27/2024 | 4/27/2024 | ||||||
| Current assets | ||||||||
| Cash and equivalents | $ | 342,270 | $ | 341,098 | ||||
| Receivables, net of allowance of | 121,047 | 139,213 | ||||||
| Inventories, net | 271,790 | 263,237 | ||||||
| Other current assets | 99,268 | 93,260 | ||||||
| Total current assets | 834,375 | 836,808 | ||||||
| Property, plant and equipment, net | 298,781 | 298,224 | ||||||
| Goodwill | 220,109 | 214,453 | ||||||
| Other intangible assets, net | 48,684 | 47,251 | ||||||
| Deferred income taxes – long-term | 8,969 | 10,283 | ||||||
| Right of use lease assets | 448,834 | 446,466 | ||||||
| Other long-term assets, net | 57,863 | 59,957 | ||||||
| Total assets | $ | 1,917,615 | $ | 1,913,442 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 94,165 | $ | 96,486 | ||||
| Lease liabilities, short-term | 77,247 | 77,027 | ||||||
| Accrued expenses and other current liabilities | 268,530 | 263,768 | ||||||
| Total current liabilities | 439,942 | 437,281 | ||||||
| Lease liabilities, long-term | 407,009 | 404,724 | ||||||
| Other long-term liabilities | 60,188 | 58,077 | ||||||
| Shareholders' equity | ||||||||
| Preferred shares – 5,000 authorized; none issued | — | — | ||||||
| Common shares, | 42,015 | 42,440 | ||||||
| Capital in excess of par value | 371,421 | 368,485 | ||||||
| Retained earnings | 590,308 | 598,009 | ||||||
| Accumulated other comprehensive loss | (4,535 | ) | (5,870 | ) | ||||
| Total La-Z-Boy Incorporated shareholders' equity | 999,209 | 1,003,064 | ||||||
| Noncontrolling interests | 11,267 | 10,296 | ||||||
| Total equity | 1,010,476 | 1,013,360 | ||||||
| Total liabilities and equity | $ | 1,917,615 | $ | 1,913,442 | ||||
| LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| Quarter Ended | ||||||||
| (Unaudited, amounts in thousands) | 7/27/2024 | 7/29/2023 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 26,804 | $ | 27,926 | ||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||
| (Gain)/loss on disposal and impairment of assets | (117 | ) | 113 | |||||
| (Gain)/loss on sale of investments | (80 | ) | 307 | |||||
| Provision for doubtful accounts | 91 | (405 | ) | |||||
| Depreciation and amortization | 12,147 | 10,211 | ||||||
| Amortization of right-of-use lease assets | 22,722 | 17,265 | ||||||
| Lease impairment/(settlement) | — | (1,175 | ) | |||||
| Equity-based compensation expense | 3,175 | 2,526 | ||||||
| Change in deferred taxes | 1,999 | 602 | ||||||
| Change in receivables | 17,783 | 14,769 | ||||||
| Change in inventories | (6,912 | ) | 9,271 | |||||
| Change in other assets | (6,668 | ) | (2,820 | ) | ||||
| Change in payables | 952 | (8,565 | ) | |||||
| Change in lease liabilities | (23,306 | ) | (17,882 | ) | ||||
| Change in other liabilities | 3,728 | (26,230 | ) | |||||
| Net cash provided by operating activities | 52,318 | 25,913 | ||||||
| Cash flows from investing activities | ||||||||
| Proceeds from disposals of assets | 158 | 4,031 | ||||||
| Capital expenditures | (15,620 | ) | (13,457 | ) | ||||
| Purchases of investments | (2,813 | ) | (11,407 | ) | ||||
| Proceeds from sales of investments | 7,879 | 12,404 | ||||||
| Acquisitions | (6,797 | ) | (4,250 | ) | ||||
| Net cash used for investing activities | (17,193 | ) | (12,679 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments on finance lease liabilities | (145 | ) | (67 | ) | ||||
| Stock issued for stock and employee benefit plans, net of shares withheld for taxes | 7,874 | (1,978 | ) | |||||
| Repurchases of common stock | (33,673 | ) | (10,007 | ) | ||||
| Dividends paid to shareholders | (8,371 | ) | (7,852 | ) | ||||
| Net cash used for financing activities | (34,315 | ) | (19,904 | ) | ||||
| Effect of exchange rate changes on cash and equivalents | 362 | 242 | ||||||
| Change in cash, cash equivalents and restricted cash | 1,172 | (6,428 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 341,098 | 346,678 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 342,270 | $ | 340,250 | ||||
| Supplemental disclosure of non-cash investing activities | ||||||||
| Capital expenditures included in payables | $ | 2,583 | $ | 7,188 | ||||
| LA-Z-BOY INCORPORATED SEGMENT INFORMATION | ||||||||
| Quarter Ended | ||||||||
| (Unaudited, amounts in thousands) | 7/27/2024 | 7/29/2023 | ||||||
| Sales | ||||||||
| Wholesale segment: | ||||||||
| Sales to external customers | $ | 256,020 | $ | 236,251 | ||||
| Intersegment sales | 94,880 | 97,224 | ||||||
| Wholesale segment sales | 350,900 | 333,475 | ||||||
| Retail segment sales | 202,370 | 208,243 | ||||||
| Corporate and Other: | ||||||||
| Sales to external customers | 37,142 | 37,157 | ||||||
| Intersegment sales | 1,566 | 2,904 | ||||||
| Corporate and Other sales | 38,708 | 40,061 | ||||||
| Eliminations | (96,446 | ) | (100,128 | ) | ||||
| Consolidated sales | $ | 495,532 | $ | 481,651 | ||||
| Operating Income (Loss) | ||||||||
| Wholesale segment | $ | 23,999 | $ | 23,503 | ||||
| Retail segment | 20,649 | 29,264 | ||||||
| Corporate and Other | (12,278 | ) | (18,241 | ) | ||||
| Consolidated operating income | $ | 32,370 | $ | 34,526 | ||||
| LA-Z-BOY INCORPORATED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||
| Quarter Ended | ||||||||
| (Amounts in thousands, except per share data) | 7/27/2024 | 7/29/2023 | ||||||
| GAAP gross profit | $ | 213,343 | $ | 205,728 | ||||
| Purchase accounting charges (1) | 140 | — | ||||||
| Supply chain optimization charges (2) | — | 146 | ||||||
| Non-GAAP gross profit | $ | 213,483 | $ | 205,874 | ||||
| GAAP SG&A | $ | 180,973 | $ | 171,202 | ||||
| Purchase accounting charges (3) | (254 | ) | (254 | ) | ||||
| Supply chain optimization (charges)/gain (4) | — | 1,175 | ||||||
| Non-GAAP SG&A | $ | 180,719 | $ | 172,123 | ||||
| GAAP operating income | $ | 32,370 | $ | 34,526 | ||||
| Purchase accounting charges | 394 | 254 | ||||||
| Supply chain optimization charges | — | (1,029 | ) | |||||
| Non-GAAP operating income | $ | 32,764 | $ | 33,751 | ||||
| GAAP income before income taxes | $ | 35,966 | $ | 38,016 | ||||
| Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense | 394 | 302 | ||||||
| Supply chain optimization charges | — | (1,029 | ) | |||||
| Non-GAAP income before income taxes | $ | 36,360 | $ | 37,289 | ||||
| GAAP net income attributable to La-Z-Boy Incorporated | $ | 26,159 | $ | 27,479 | ||||
| Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense | 394 | 302 | ||||||
| Tax effect of purchase accounting | (100 | ) | (80 | ) | ||||
| Supply chain optimization charges | — | (1,029 | ) | |||||
| Tax effect of supply chain optimization | — | 273 | ||||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated | $ | 26,453 | $ | 26,945 | ||||
| GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") | $ | 0.61 | $ | 0.63 | ||||
| Purchase accounting charges, net of tax, per share | 0.01 | 0.01 | ||||||
| Supply chain optimization charges, net of tax, per share | — | (0.02 | ) | |||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") | $ | 0.62 | $ | 0.62 | ||||
| (1) Includes incremental expense upon the sale of inventory acquired at fair value. | ||||||||
| (2) Fiscal 2024 includes costs to relocate equipment and inventory related to the closure our manufacturing facility in Torreón, Mexico. | ||||||||
| (3) Includes amortization of intangible assets. | ||||||||
| (4) Fiscal 2024 includes a gain related to the settlement of the Torreón, Mexico lease obligation on previously impaired assets. | ||||||||
| LA-Z-BOY INCORPORATED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES SEGMENT INFORMATION | ||||||||||||||
| Quarter Ended | ||||||||||||||
| (Amounts in thousands) | 7/27/2024 | % of sales | 7/29/2023 | % of sales | ||||||||||
| GAAP operating income (loss) | ||||||||||||||
| Wholesale segment | $ | 23,999 | 6.8 | % | $ | 23,503 | 7.0 | % | ||||||
| Retail segment | 20,649 | 10.2 | % | 29,264 | 14.1 | % | ||||||||
| Corporate and Other | (12,278 | ) | N/M | (18,241 | ) | N/M | ||||||||
| Consolidated GAAP operating income | $ | 32,370 | 6.5 | % | $ | 34,526 | 7.2 | % | ||||||
| Non-GAAP items affecting operating income | ||||||||||||||
| Wholesale segment | $ | 55 | $ | (974 | ) | |||||||||
| Retail segment | 140 | — | ||||||||||||
| Corporate and Other | 199 | 199 | ||||||||||||
| Consolidated Non-GAAP items affecting operating income | $ | 394 | $ | (775 | ) | |||||||||
| Non-GAAP operating income (loss) | ||||||||||||||
| Wholesale segment | $ | 24,054 | 6.9 | % | $ | 22,529 | 6.8 | % | ||||||
| Retail segment | 20,789 | 10.3 | % | 29,264 | 14.1 | % | ||||||||
| Corporate and Other | (12,079 | ) | N/M | (18,042 | ) | N/M | ||||||||
| Consolidated Non-GAAP operating income | $ | 32,764 | 6.6 | % | $ | 33,751 | 7.0 | % | ||||||
| N/M - Not Meaningful | ||||||||||||||
FAQ
What were La-Z-Boy's sales in Q1 FY2025?
How did La-Z-Boy's Wholesale segment perform in Q1 FY2025?
What was La-Z-Boy's operating cash flow in Q1 FY2025?
What was La-Z-Boy's GAAP operating margin for Q1 FY2025?
What is La-Z-Boy's guidance for Q2 FY2025?
