La-Z-Boy Inc is a U.S.-based company that manufactures, distributes, and retails upholstery furniture products. It is a producer of reclining chairs and distributors of residential furniture in the U.S. The company chiefly operates in the United States but also has secondary operations in Canada and other countries. The company's reportable segments include the Wholesale segment, which manufactures and imports upholstered furniture; and Retail, which sells upholstered and case goods furniture to the end consumer. The majority of the company's revenue is derived from its Wholesale segment.
Performance Overview
For the first quarter of fiscal 2025, La-Z-Boy Inc (LZB, Financial) reported consolidated sales of $496 million, marking a 3% increase compared to the same period last year. This performance exceeded the analyst revenue estimate of $479.77 million. The company's GAAP diluted earnings per share (EPS) stood at $0.61, in line with the analyst estimate of $0.60, while the Non-GAAP diluted EPS was $0.62.
Segment Performance
The Wholesale segment saw a 5% increase in sales, driven by higher delivered volume to external customers. However, the Retail segment faced challenges with a 3% decrease in delivered sales, attributed to lower traffic and softer industry-wide demand. Despite these challenges, written sales for the Retail segment increased by 4% due to growth from acquired and new stores.
Financial Achievements
La-Z-Boy Inc (LZB, Financial) achieved significant financial milestones in the first quarter. The company generated $52 million in operating cash flow, doubling the amount from the previous year. This robust cash flow is crucial for sustaining operations and funding future growth initiatives.
Key Financial Metrics
| Metric | Q1 FY25 | Q1 FY24 | Change |
|---|---|---|---|
| Sales | $495.5 million | $481.7 million | 3% |
| GAAP Operating Income | $32.4 million | $34.5 million | (6)% |
| Non-GAAP Operating Income | $32.8 million | $33.8 million | (3)% |
| GAAP Net Income | $26.2 million | $27.5 million | (5)% |
| Non-GAAP Net Income | $26.5 million | $26.9 million | (2)% |
| GAAP Diluted EPS | $0.61 | $0.63 | (3)% |
| Non-GAAP Diluted EPS | $0.62 | $0.62 | 0% |
Commentary and Outlook
"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." - Melinda D. Whittington, President and CEO of La-Z-Boy Incorporated.
Looking ahead, La-Z-Boy Inc (LZB, Financial) expects second-quarter sales to range between $495 million and $515 million, with a Non-GAAP operating margin of 6-7%. The company remains committed to its Century Vision strategy, focusing on strengthening in-store execution, opening new stores, and acquiring independent La-Z-Boy Furniture Galleries® stores.
Conclusion
La-Z-Boy Inc (LZB, Financial) has demonstrated resilience and strategic growth in the first quarter of fiscal 2025, outperforming analyst estimates in both revenue and EPS. Despite industry challenges, the company's strong cash flow and strategic initiatives position it well for future growth. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from La-Z-Boy Inc for further details.
