La-Z-Boy Incorporated Reports Strong Third Quarter Results; Sales Growth Across All Segments, Company-Owned Same-Store Sales Accelerate
La-Z-Boy (NYSE: LZB) reported strong Q3 FY2025 results with consolidated delivered sales of $522 million, up 4% year-over-year. The company achieved a GAAP operating margin of 6.7% and diluted EPS of $0.68. The Retail segment showed impressive growth with sales increasing 11%, driven by same-store sales growth and acquisitions.
Key highlights include written same-store sales up 7% for company-owned stores and 5% for the entire network. The company returned $90 million to shareholders year-to-date, a 40% increase from the previous year. Looking ahead, La-Z-Boy expects Q4 sales between $545-565 million with a Non-GAAP operating margin of 8.5-9.5%.
The company maintained a strong financial position with $315 million in cash and no external debt. The Board declared a quarterly dividend of $0.22 per share, payable March 14, 2025.
La-Z-Boy (NYSE: LZB) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con vendite consolidate consegnate di 522 milioni di dollari, in aumento del 4% rispetto all'anno precedente. L'azienda ha raggiunto un margine operativo GAAP del 6,7% e un utile per azione diluito di 0,68 dollari. Il segmento Retail ha mostrato una crescita impressionante con vendite in aumento dell'11%, trainate dalla crescita delle vendite negli stessi punti vendita e dalle acquisizioni.
Tra i punti salienti ci sono le vendite scritte negli stessi punti vendita, aumentate del 7% per i negozi di proprietà dell'azienda e del 5% per l'intero network. L'azienda ha restituito 90 milioni di dollari agli azionisti dall'inizio dell'anno, un aumento del 40% rispetto all'anno precedente. Guardando al futuro, La-Z-Boy prevede vendite per il quarto trimestre comprese tra 545-565 milioni di dollari con un margine operativo Non-GAAP del 8,5-9,5%.
L'azienda ha mantenuto una posizione finanziaria solida con 315 milioni di dollari in contante e senza debiti esterni. Il Consiglio ha dichiarato un dividendo trimestrale di 0,22 dollari per azione, pagabile il 14 marzo 2025.
La-Z-Boy (NYSE: LZB) reportó resultados sólidos para el tercer trimestre del año fiscal 2025, con ventas consolidadas entregadas de 522 millones de dólares, un aumento del 4% en comparación con el año anterior. La compañía logró un margen operativo GAAP del 6,7% y una utilidad por acción diluida de 0,68 dólares. El segmento de Retail mostró un crecimiento impresionante con ventas que aumentaron un 11%, impulsadas por el crecimiento de ventas en las mismas tiendas y adquisiciones.
Los puntos destacados incluyen un aumento del 7% en las ventas en las mismas tiendas para las tiendas de propiedad de la empresa y del 5% para toda la red. La compañía devolvió 90 millones de dólares a los accionistas hasta la fecha, un aumento del 40% con respecto al año pasado. Mirando hacia adelante, La-Z-Boy espera ventas en el cuarto trimestre entre 545-565 millones de dólares con un margen operativo No-GAAP del 8,5-9,5%.
La empresa mantuvo una sólida posición financiera con 315 millones de dólares en efectivo y sin deuda externa. La Junta declaró un dividendo trimestral de 0,22 dólares por acción, pagadero el 14 de marzo de 2025.
La-Z-Boy (NYSE: LZB)는 2025 회계연도 3분기 실적을 발표했으며, 총 매출은 5억 2200만 달러로 전년 대비 4% 증가했습니다. 회사는 GAAP 운영 마진 6.7%와 희석 주당순이익 0.68달러를 달성했습니다. 소매 부문은 같은 매장에서의 매출 성장과 인수에 힘입어 11%의 인상된 매출로 인상적인 성장을 보였습니다.
주요 하이라이트로는 회사 소유 매장에서의 같은 매장 매출이 7% 증가했으며, 전체 네트워크에서 5% 증가했습니다. 회사는 올해 들어 주주에게 9천만 달러를 반환했으며, 이는 전년 대비 40% 증가한 수치입니다. 앞으로 La-Z-Boy는 4분기 매출을 5억 4500만-5억 6500만 달러로 예상하며, 비 GAAP 운영 마진은 8.5-9.5%에 이를 것으로 보입니다.
회사는 3억 1500만 달러의 현금을 보유하고 있으며 외부 부채가 없는 강력한 재무 상태를 유지하고 있습니다. 이사회는 주당 0.22달러의 분기 배당금을 선언했으며, 2025년 3월 14일에 지급될 예정입니다.
La-Z-Boy (NYSE: LZB) a annoncé des résultats solides pour le troisième trimestre de l'exercice 2025, avec des ventes consolidées livrées de 522 millions de dollars, en hausse de 4% par rapport à l'année précédente. L'entreprise a atteint une marge opérationnelle GAAP de 6,7% et un bénéfice par action dilué de 0,68 dollar. Le segment de la vente au détail a montré une croissance impressionnante avec des ventes en augmentation de 11%, soutenues par la croissance des ventes dans les mêmes magasins et les acquisitions.
Les faits marquants incluent une augmentation des ventes dans les mêmes magasins de 7% pour les magasins détenus par l'entreprise et de 5% pour l'ensemble du réseau. L'entreprise a restitué 90 millions de dollars aux actionnaires depuis le début de l'année, soit une augmentation de 40% par rapport à l'année précédente. En regardant vers l'avenir, La-Z-Boy s'attend à des ventes pour le quatrième trimestre comprises entre 545-565 millions de dollars avec une marge opérationnelle Non-GAAP de 8,5-9,5%.
L'entreprise a maintenu une solide position financière avec 315 millions de dollars en espèces et aucune dette externe. Le Conseil a déclaré un dividende trimestriel de 0,22 dollar par action, payable le 14 mars 2025.
La-Z-Boy (NYSE: LZB) hat starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 gemeldet, mit konsolidierten Umsätzen von 522 Millionen Dollar, was einem Anstieg von 4% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine GAAP-Betriebsrendite von 6,7% und einen verwässerten Gewinn pro Aktie von 0,68 Dollar. Der Einzelhandelsbereich zeigte ein beeindruckendes Wachstum mit einem Umsatzanstieg von 11%, der durch das Wachstum der Same-Store-Verkäufe und Akquisitionen angetrieben wurde.
Wichtige Highlights umfassen einen Anstieg der Same-Store-Verkäufe um 7% für die unternehmenseigenen Geschäfte und 5% für das gesamte Netzwerk. Das Unternehmen hat bis heute 90 Millionen Dollar an die Aktionäre zurückgegeben, was einem Anstieg von 40% im Vergleich zum Vorjahr entspricht. Ausblickend erwartet La-Z-Boy im vierten Quartal Umsätze zwischen 545-565 Millionen Dollar mit einer Non-GAAP-Betriebsrendite von 8,5-9,5%.
Das Unternehmen hat eine starke Finanzlage mit 315 Millionen Dollar in bar und ohne externe Schulden aufrechterhalten. Der Vorstand hat eine vierteljährliche Dividende von 0,22 Dollar pro Aktie erklärt, die am 14. März 2025 zahlbar ist.
- Sales increased 4% to $522 million
- Operating margin improved 20 basis points to 6.7%
- Retail segment sales grew 11%
- Written same-store sales increased 7%
- Strong cash position of $315 million with no debt
- 40% increase in shareholder returns year-to-date
- Net income decreased 1% year-over-year
- International wholesale business experienced significant deleverage
Insights
La-Z-Boy's Q3 results reveal a company effectively navigating challenging market conditions while executing a strategic transformation. The 4% sales growth to $522 million is particularly impressive given the current housing market headwinds, demonstrating the company's ability to create its own growth momentum.
The retail segment's performance is a standout, with 11% delivered sales growth and an impressive 15% increase in written sales. This acceleration in written sales, coupled with 7% same-store sales growth, indicates strong underlying demand and effective execution of the company's retail strategy. The improvement in conversion rates and average ticket values suggests successful premium positioning and operational efficiency.
Financial health remains robust with $315 million in cash and zero external debt, while generating $125 million in operating cash flow year-to-date, up 19% year-over-year. The company's ability to return $90 million to shareholders while maintaining strategic investments in retail expansion demonstrates strong cash flow management.
The vertically integrated business model is proving to be a key competitive advantage, enabling better margin control and market responsiveness. This is evidenced by the 20 basis point improvement in operating margin to 6.8% (Non-GAAP), despite broader industry challenges. The expansion of company-owned retail stores, now approaching 200 locations, strengthens direct-to-consumer channels and enhances brand control.
Looking ahead, the Q4 guidance of $545-565 million in sales with improved margin expectations of 8.5-9.5% suggests continued momentum. The company's strategic focus on retail expansion and core brand growth, combined with strong execution in a challenging environment, positions it well for market share gains and potential upside when housing market conditions improve.
Fiscal 2025 Third Quarter Highlights:
- Consolidated delivered sales of
$522 million - Up
4% versus prior year
- Up
- Operating margin on a GAAP and Non-GAAP basis improved 20 basis points versus prior year
- GAAP and Non-GAAP(1) diluted EPS of
$0.68 - Delivered sales and Non-GAAP(1) operating margin at high end of guidance range
- Retail segment sales increased
11% - Fueled by same-store sales growth and independent La-Z-Boy Furniture Galleries® acquisitions, along with new stores
- Retail added three newly opened stores, and two newly acquired independent La-Z-Boy Furniture Galleries® stores, with one closure; and announced an additional two-store acquisition expected to close in the fourth quarter
MONROE, Mich., Feb. 18, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong third quarter results for the period ended January 25, 2025. For the quarter, sales totaled
Written sales trends sequentially accelerated, with third quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) increasing
Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our third quarter results reflect the steady progress we have made to build a more agile business, create our own momentum, and drive growth in what is still a challenged environment. We delivered sales growth across each of our segments, punctuated by strong Retail same-store sales. This was driven by solid conversion rates, average ticket, and design sales, all of which improved again year-over-year. Additionally, within our Wholesale segment, our core North America La-Z-Boy brand continues to post sales growth and margin expansion. Our vertically integrated model reinforces the unique strength of our iconic brand and positions us to disproportionately benefit when the market rebounds. We are a trusted solution for a growing number of consumers and will remain steadfast in our mission of bringing the transformational power of comfort to people, homes, and communities.
Whittington added, “As we look to the future, our brand, and it’s well-known attributes of comfort and quality, will be further supported by our expanding consumer insights. We believe this is creating a flywheel with improved innovation, strong speed to market, and improved brand reach and profitability. While underlying housing fundamentals remain challenged, we are focused on solving for the unique needs of the consumer with comfort and quality and controlling what we can control with strong execution. This is the foundation to what has led La-Z-Boy Incorporated to be successful for the past century and will continue to be the cornerstone of our philosophy for our Century Vision strategy and next 100 years.”
Fourth Quarter Outlook:
Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “Our strong written trends and sequential acceleration in our Retail and Wholesale businesses is a testament that our Century Vision strategy is enabling us to outperform the industry. We will continue to focus on growing our core La-Z-Boy brand by disproportionately expanding our Retail segment and driving strategic, compatible distribution in the Wholesale segment. We delivered results above a year ago and at the higher end of our sales and margin expectations for the quarter despite continued challenging macro conditions. Our expectation is for industry trends to remain under pressure, though we expect to continue to outpace the industry. Assuming no significant changes in tariffs, we expect fiscal fourth quarter sales to be in the range of
Key Results:
| (Unaudited, amounts in thousands, except per share data and percentages) | Quarter Ended | ||||||||||
| 1/25/2025 | 1/27/2024 | Change | |||||||||
| Sales | $ | 521,777 | $ | 500,406 | 4 | % | |||||
| GAAP operating income | 35,168 | 32,561 | 8 | % | |||||||
| Non-GAAP operating income | 35,422 | 33,022 | 7 | % | |||||||
| GAAP operating margin | 6.7 | % | 6.5 | % | 20 | bps | |||||
| Non-GAAP operating margin | 6.8 | % | 6.6 | % | 20 | bps | |||||
| GAAP net income attributable to La-Z-Boy Incorporated | 28,429 | 28,640 | (1) | % | |||||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated | 28,619 | 29,008 | (1) | % | |||||||
| Diluted weighted average common shares | 42,103 | 43,195 | |||||||||
| GAAP diluted earnings per share | $ | 0.68 | $ | 0.66 | 3 | % | |||||
| Non-GAAP diluted earnings per share | $ | 0.68 | $ | 0.67 | 1 | % | |||||
Liquidity Measures:
| Nine Months Ended | Nine Months Ended | |||||||||||||||
| (Unaudited, amounts in thousands) | 1/25/2025 | 1/27/2024 | (Unaudited, amounts in thousands) | 1/25/2025 | 1/27/2024 | |||||||||||
| Free Cash Flow | Cash Returns to Shareholders | |||||||||||||||
| Operating cash flow | $ | 125,269 | $ | 105,354 | Share repurchases | $ | 64,387 | $ | 40,022 | |||||||
| Capital expenditures | (51,538 | ) | (38,034 | ) | Dividends | 25,871 | 24,177 | |||||||||
| Free cash flow | $ | 73,731 | $ | 67,320 | Cash returns to shareholders | $ | 90,258 | $ | 64,199 | |||||||
| (Unaudited, amounts in thousands) | 1/25/2025 | 1/27/2024 | ||||
| Cash and cash equivalents | $ | 314,589 | $ | 329,324 | ||
| Restricted cash | — | 3,855 | ||||
| Total cash, cash equivalents and restricted cash | $ | 314,589 | $ | 333,179 | ||
Fiscal 2025 Third Quarter Results versus Fiscal 2024 Third Quarter:
- Consolidated sales in the third quarter of Fiscal 2025 increased
4% to$522 million versus last year, primarily driven by strong same-store sales, acquisitions and new stores in our Retail business, momentum in our core North America La-Z-Boy Wholesale brand, and strong sales growth in our Joybird business - Consolidated GAAP operating margin was
6.7% versus6.5% - Consolidated Non-GAAP(1) operating margin increased 20 basis points to
6.8% versus6.6% , driven by lower input costs (reduced commodity prices and improved sourcing) partially offset by the impact of a significant customer transition in our international wholesale business
- Consolidated Non-GAAP(1) operating margin increased 20 basis points to
- GAAP diluted EPS increased to
$0.68 from$0.66 and Non-GAAP(1) diluted EPS totaled$0.68 versus$0.67 last year in the comparable period
Retail Segment:
- Sales:
- Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased
15% with broad based growth from increases in same-store sales, and new and acquired stores compared to the year ago period- Written same-store sales increased
7% , driven by strong execution with higher conversion rates, average ticket, and design sales
- Written same-store sales increased
- Delivered sales increased
11% to$228 million versus last year, primarily due to higher same-store sales and growth from acquired and new stores
- Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased
- Operating Margin:
- GAAP operating margin and GAAP operating income were
10.7% and$24 million , versus10.9% and$22 million , respectively- Non-GAAP(1) operating margin and Non-GAAP(1) operating income were
10.7% and$24 million , down 20 basis points, and up10% , respectively, driven by sales growth offset by an increase in selling expenses and fixed costs supporting our long-term strategy of growing our Retail business.
- Non-GAAP(1) operating margin and Non-GAAP(1) operating income were
- GAAP operating margin and GAAP operating income were
Wholesale Segment:
- Sales:
- Sales increased
2% to$363 million , driven by our core North America La-Z-Boy brand through favorable shift in product/channel mix with higher sales to our La-Z-Boy Furniture Galleries®, partially offset by the impact of a significant customer transition in our international wholesale business
- Sales increased
- Operating Margin:
- GAAP operating margin increased to
6.5% versus6.4% - Non-GAAP(1) operating margin was
6.5% , increasing 10 basis points from the year ago period driven by gross margin expansion (lower input costs and favorable foreign exchange), partially offset by significant deleverage in our international wholesale business
- Non-GAAP(1) operating margin was
- GAAP operating margin increased to
Corporate & Other:
- Joybird written sales increased
10% and delivered sales increased9% to$37 million driven by improved retail traffic and strong execution - Joybird operating margin performance saw year-over-year improvement from higher gross margins driven by favorable product mix and SG&A leverage on higher sales leading to breakeven operating profit
Balance Sheet and Cash Flow, Fiscal 2025 Third Quarter:
- Ended the quarter with
$315 million in cash(3) and no external debt - Generated
$57 million in cash from operations versus$48 million in the third quarter of last fiscal year. Year to date, cash flow from operations was$125 million , up19% from last year's comparable period - Invested
$19 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels) - Returned approximately
$20 million to shareholders, including$11 million in share repurchases and$9 million in dividends. Year to date,$90 million has been returned to shareholders, approximately40% more than the respective period last year
Dividend:
On February 18, 2025, 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, February 19, 2025, 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: 837177.
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: 51987. The webcast replay will be available for one year.
Investor Relations Contact:
Mark Becks, CFA, (734) 457-9538
mark.becks@la-z-boy.com
Media Contact:
Cara Klaer, (734) 598-0652
cara.klaer@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 nearly 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of over 360 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 third quarter of fiscal 2025 exclude:
- purchase accounting charges related to acquisitions completed in prior periods totaling
$0.3 million pre-tax, or less than$0.01 per diluted share, all included in operating income
Non-GAAP amounts for the third quarter of fiscal 2024 exclude:
- a
$0.2 million pre-tax, or less than$0.01 per diluted share, related to our supply chain optimization actions - purchase accounting charges related to acquisitions completed in prior periods totaling
$0.3 million pre-tax, or$0.01 per diluted share, all included in operating income
(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 asset impairment costs, accelerated depreciation expense, lease termination gains, severance costs, and employee relocation costs related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. 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 | Nine Months Ended | |||||||||||||||
| (Unaudited, amounts in thousands, except per share data) | 1/25/2025 | 1/27/2024 | 1/25/2025 | 1/27/2024 | ||||||||||||
| Sales | $ | 521,777 | $ | 500,406 | $ | 1,538,336 | $ | 1,493,492 | ||||||||
| Cost of sales | 290,412 | 287,152 | 862,980 | 851,905 | ||||||||||||
| Gross profit | 231,365 | 213,254 | 675,356 | 641,587 | ||||||||||||
| Selling, general and administrative expense | 196,197 | 180,693 | 569,046 | 540,888 | ||||||||||||
| Operating income | 35,168 | 32,561 | 106,310 | 100,699 | ||||||||||||
| Interest expense | (102 | ) | (106 | ) | (411 | ) | (329 | ) | ||||||||
| Interest income | 3,465 | 4,124 | 11,619 | 11,222 | ||||||||||||
| Other income (expense), net | 97 | (639 | ) | (2,400 | ) | 21 | ||||||||||
| Income before income taxes | 38,628 | 35,940 | 115,118 | 111,613 | ||||||||||||
| Income tax expense | 9,683 | 7,256 | 29,516 | 27,309 | ||||||||||||
| Net income | 28,945 | 28,684 | 85,602 | 84,304 | ||||||||||||
| Net (income) attributable to noncontrolling interests | (516 | ) | (44 | ) | (977 | ) | (986 | ) | ||||||||
| Net income attributable to La-Z-Boy Incorporated | $ | 28,429 | $ | 28,640 | $ | 84,625 | $ | 83,318 | ||||||||
| Basic weighted average common shares | 41,437 | 42,767 | 41,733 | 43,005 | ||||||||||||
| Basic net income attributable to La-Z-Boy Incorporated per share | $ | 0.69 | $ | 0.67 | $ | 2.03 | $ | 1.94 | ||||||||
| Diluted weighted average common shares | 42,103 | 43,195 | 42,380 | 43,344 | ||||||||||||
| Diluted net income attributable to La-Z-Boy Incorporated per share | $ | 0.68 | $ | 0.66 | $ | 2.00 | $ | 1.92 | ||||||||
| LA-Z-BOY INCORPORATED CONSOLIDATED BALANCE SHEET | ||||||||
| (Unaudited, amounts in thousands, except par value) | 1/25/2025 | 4/27/2024 | ||||||
| Current assets | ||||||||
| Cash and equivalents | $ | 314,589 | $ | 341,098 | ||||
| Receivables, net of allowance of | 127,612 | 139,213 | ||||||
| Inventories, net | 288,720 | 263,237 | ||||||
| Other current assets | 109,991 | 93,260 | ||||||
| Total current assets | 840,912 | 836,808 | ||||||
| Property, plant and equipment, net | 325,031 | 298,224 | ||||||
| Goodwill | 221,693 | 214,453 | ||||||
| Other intangible assets, net | 50,664 | 47,251 | ||||||
| Deferred income taxes – long-term | 9,343 | 10,283 | ||||||
| Right of use lease assets | 450,062 | 446,466 | ||||||
| Other long-term assets, net | 61,179 | 59,957 | ||||||
| Total assets | $ | 1,958,884 | $ | 1,913,442 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 106,594 | $ | 96,486 | ||||
| Lease liabilities, short-term | 79,224 | 77,027 | ||||||
| Accrued expenses and other current liabilities | 269,691 | 263,768 | ||||||
| Total current liabilities | 455,509 | 437,281 | ||||||
| Lease liabilities, long-term | 408,972 | 404,724 | ||||||
| Other long-term liabilities | 62,224 | 58,077 | ||||||
| Shareholders' equity | ||||||||
| Preferred shares – 5,000 authorized; none issued | — | — | ||||||
| Common shares, | 41,411 | 42,440 | ||||||
| Capital in excess of par value | 381,759 | 368,485 | ||||||
| Retained earnings | 603,569 | 598,009 | ||||||
| Accumulated other comprehensive loss | (5,467 | ) | (5,870 | ) | ||||
| Total La-Z-Boy Incorporated shareholders' equity | 1,021,272 | 1,003,064 | ||||||
| Noncontrolling interests | 10,907 | 10,296 | ||||||
| Total equity | 1,032,179 | 1,013,360 | ||||||
| Total liabilities and equity | $ | 1,958,884 | $ | 1,913,442 | ||||
| LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| Nine Months Ended | ||||||||
| (Unaudited, amounts in thousands) | 1/25/2025 | 1/27/2024 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 85,602 | $ | 84,304 | ||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||
| (Gain)/loss on disposal and impairment of assets | 73 | (15 | ) | |||||
| Gain on sale of investments | (199 | ) | (1,169 | ) | ||||
| Provision for doubtful accounts | 518 | (267 | ) | |||||
| Depreciation and amortization | 35,020 | 36,493 | ||||||
| Amortization of right-of-use lease assets | 61,521 | 56,660 | ||||||
| Lease impairment/(settlement) | — | (1,175 | ) | |||||
| Equity-based compensation expense | 13,428 | 11,048 | ||||||
| Change in deferred taxes | 2,134 | 1,911 | ||||||
| Change in receivables | 10,465 | 4,277 | ||||||
| Change in inventories | (21,726 | ) | 5,968 | |||||
| Change in other assets | (10,217 | ) | (6,314 | ) | ||||
| Change in payables | 11,897 | (15,420 | ) | |||||
| Change in lease liabilities | (62,607 | ) | (57,385 | ) | ||||
| Change in other liabilities | (640 | ) | (13,562 | ) | ||||
| Net cash provided by operating activities | 125,269 | 105,354 | ||||||
| Cash flows from investing activities | ||||||||
| Proceeds from disposals of assets | 188 | 4,836 | ||||||
| Capital expenditures | (51,538 | ) | (38,034 | ) | ||||
| Purchases of investments | (6,783 | ) | (17,869 | ) | ||||
| Proceeds from sales of investments | 11,715 | 23,337 | ||||||
| Acquisitions | (24,772 | ) | (26,299 | ) | ||||
| Net cash used for investing activities | (71,190 | ) | (54,029 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments on finance lease liabilities | (442 | ) | (346 | ) | ||||
| Holdback payments for acquisitions | — | (5,000 | ) | |||||
| Stock issued for stock and employee benefit plans, net of shares withheld for taxes | 10,906 | 6,241 | ||||||
| Repurchases of common stock | (64,387 | ) | (40,022 | ) | ||||
| Dividends paid to shareholders | (25,871 | ) | (24,177 | ) | ||||
| Dividends paid to minority interest joint venture partners (1) | (1,414 | ) | (1,172 | ) | ||||
| Net cash used for financing activities | (81,208 | ) | (64,476 | ) | ||||
| Effect of exchange rate changes on cash and equivalents | 620 | (348 | ) | |||||
| Change in cash, cash equivalents and restricted cash | (26,509 | ) | (13,499 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 341,098 | 346,678 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 314,589 | $ | 333,179 | ||||
| Supplemental disclosure of non-cash investing activities | ||||||||
| Capital expenditures included in payables | $ | 4,010 | $ | 3,008 | ||||
| (1) | Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested. |
| LA-Z-BOY INCORPORATED SEGMENT INFORMATION | ||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| (Unaudited, amounts in thousands) | 1/25/2025 | 1/27/2024 | 1/25/2025 | 1/27/2024 | ||||||||||||
| Sales | ||||||||||||||||
| Wholesale segment: | ||||||||||||||||
| Sales to external customers | $ | 255,028 | $ | 260,542 | $ | 770,031 | $ | 760,531 | ||||||||
| Intersegment sales | 107,970 | 95,833 | 307,764 | 294,286 | ||||||||||||
| Wholesale segment sales | 362,998 | 356,375 | 1,077,795 | 1,054,817 | ||||||||||||
| Retail segment sales | 227,667 | 204,696 | 651,601 | 627,248 | ||||||||||||
| Corporate and Other: | ||||||||||||||||
| Sales to external customers | 39,082 | 35,168 | 116,704 | 105,713 | ||||||||||||
| Intersegment sales | 1,580 | 2,964 | 4,753 | 8,712 | ||||||||||||
| Corporate and Other sales | 40,662 | 38,132 | 121,457 | 114,425 | ||||||||||||
| Eliminations | (109,550 | ) | (98,797 | ) | (312,517 | ) | (302,998 | ) | ||||||||
| Consolidated sales | $ | 521,777 | $ | 500,406 | $ | 1,538,336 | $ | 1,493,492 | ||||||||
| Operating Income (Loss) | ||||||||||||||||
| Wholesale segment | $ | 23,565 | $ | 22,711 | $ | 72,093 | $ | 67,664 | ||||||||
| Retail segment | 24,457 | 22,313 | 73,003 | 79,512 | ||||||||||||
| Corporate and Other | (12,854 | ) | (12,463 | ) | (38,786 | ) | (46,477 | ) | ||||||||
| Consolidated operating income | $ | 35,168 | $ | 32,561 | $ | 106,310 | $ | 100,699 | ||||||||
| LA-Z-BOY INCORPORATED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| (Amounts in thousands, except per share data) | 1/25/2025 | 1/27/2024 | 1/25/2025 | 1/27/2024 | ||||||||||||
| GAAP gross profit | $ | 231,365 | $ | 213,254 | $ | 675,356 | $ | 641,587 | ||||||||
| Purchase accounting charges (1) | — | — | 140 | — | ||||||||||||
| Supply chain optimization charges (2) | — | 205 | — | 3,966 | ||||||||||||
| Non-GAAP gross profit | $ | 231,365 | $ | 213,459 | $ | 675,496 | $ | 645,553 | ||||||||
| GAAP SG&A | $ | 196,197 | $ | 180,693 | $ | 569,046 | $ | 540,888 | ||||||||
| Purchase accounting charges (3) | (254 | ) | (254 | ) | (765 | ) | (762 | ) | ||||||||
| Supply chain optimization charges (4) | — | (2 | ) | — | (1,857 | ) | ||||||||||
| Non-GAAP SG&A | $ | 195,943 | $ | 180,437 | $ | 568,281 | $ | 538,269 | ||||||||
| GAAP operating income | $ | 35,168 | $ | 32,561 | $ | 106,310 | $ | 100,699 | ||||||||
| Purchase accounting charges | 254 | 254 | 905 | 762 | ||||||||||||
| Supply chain optimization charges | — | 207 | — | 5,823 | ||||||||||||
| Non-GAAP operating income | $ | 35,422 | $ | 33,022 | $ | 107,215 | $ | 107,284 | ||||||||
| GAAP income before income taxes | $ | 38,628 | $ | 35,940 | $ | 115,118 | $ | 111,613 | ||||||||
| Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense | 254 | 254 | 905 | 810 | ||||||||||||
| Supply chain optimization charges | — | 207 | — | 5,823 | ||||||||||||
| Non-GAAP income before income taxes | $ | 38,882 | $ | 36,401 | $ | 116,023 | $ | 118,246 | ||||||||
| GAAP net income attributable to La-Z-Boy Incorporated | $ | 28,429 | $ | 28,640 | $ | 84,625 | $ | 83,318 | ||||||||
| Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense | 254 | 254 | 905 | 810 | ||||||||||||
| Tax effect of purchase accounting | (64 | ) | (51 | ) | (232 | ) | (198 | ) | ||||||||
| Supply chain optimization charges | — | 207 | — | 5,823 | ||||||||||||
| Tax effect of supply chain optimization | — | (42 | ) | — | (1,427 | ) | ||||||||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated | $ | 28,619 | $ | 29,008 | $ | 85,298 | $ | 88,326 | ||||||||
| GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") | $ | 0.68 | $ | 0.66 | $ | 2.00 | $ | 1.92 | ||||||||
| Purchase accounting charges, net of tax, per share | — | 0.01 | 0.01 | 0.02 | ||||||||||||
| Supply chain optimization charges, net of tax, per share | — | — | — | 0.10 | ||||||||||||
| Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") | $ | 0.68 | $ | 0.67 | $ | 2.01 | $ | 2.04 | ||||||||
| (1) | Includes incremental expense upon the sale of inventory acquired at fair value. |
| (2) | Fiscal 2024 includes severance charges related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. |
| (3) | Includes amortization of intangible assets. |
| (4) | The first nine months of fiscal 2024 includes |
| LA-Z-BOY INCORPORATED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES SEGMENT INFORMATION | ||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
| (Amounts in thousands) | 1/25/2025 | % of sales | 1/27/2024 | % of sales | 1/25/2025 | % of sales | 1/27/2024 | % of sales | ||||||||||||||||
| GAAP operating income (loss) | ||||||||||||||||||||||||
| Wholesale segment | $ | 23,565 | $ | 22,711 | $ | 72,093 | $ | 67,664 | ||||||||||||||||
| Retail segment | 24,457 | 22,313 | 73,003 | 79,512 | ||||||||||||||||||||
| Corporate and Other | (12,854 | ) | N/M | (12,463 | ) | N/M | (38,786 | ) | N/M | (46,477 | ) | N/M | ||||||||||||
| Consolidated GAAP operating income | $ | 35,168 | $ | 32,561 | $ | 106,310 | $ | 100,699 | ||||||||||||||||
| Non-GAAP items affecting operating income | ||||||||||||||||||||||||
| Wholesale segment | $ | 55 | $ | 262 | $ | 166 | $ | 5,987 | ||||||||||||||||
| Retail segment | — | — | 140 | — | ||||||||||||||||||||
| Corporate and Other | 199 | 199 | 599 | 598 | ||||||||||||||||||||
| Consolidated Non-GAAP items affecting operating income | $ | 254 | $ | 461 | $ | 905 | $ | 6,585 | ||||||||||||||||
| Non-GAAP operating income (loss) | ||||||||||||||||||||||||
| Wholesale segment | $ | 23,620 | $ | 22,973 | $ | 72,259 | $ | 73,651 | ||||||||||||||||
| Retail segment | 24,457 | 22,313 | 73,143 | 79,512 | ||||||||||||||||||||
| Corporate and Other | (12,655 | ) | N/M | (12,264 | ) | N/M | (38,187 | ) | N/M | (45,879 | ) | N/M | ||||||||||||
| Consolidated Non-GAAP operating income | $ | 35,422 | $ | 33,022 | $ | 107,215 | $ | 107,284 | ||||||||||||||||
| N/M - Not Meaningful | ||||||||||||||||||||||||
FAQ
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