Part I [Business](index=4&type=section&id=Item%201.%20Business) La-Z-Boy is a leading global producer of reclining chairs and a major US manufacturer of residential furniture - The company operates through two primary reportable segments: the **Retail segment**, which sells directly to consumers via 203 company-owned La-Z-Boy Furniture Galleries® stores, and the **Wholesale segment**, which manufactures, imports, and sells to a network of proprietary and independent retailers[21](index=21&type=chunk) - The company's supply chain is primarily based in North America, with five major manufacturing locations in the United States and three in Mexico, which helps mitigate tariff impacts[19](index=19&type=chunk)[29](index=29&type=chunk) - The business experiences seasonality, with the **highest demand in winter months** and the fourth quarter being historically strongest for sales[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Working capital items saw minor changes in fiscal 2025: **inventory decreased by $8.0 million**, accounts receivable increased by $0.3 million, and **customer deposits decreased by $15.9 million**[39](index=39&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk) - The wholesale backlog **decreased by 13% to $119.5 million** at the end of fiscal 2025, down from $136.6 million in fiscal 2024[44](index=44&type=chunk) - As of the end of fiscal 2025, the company employed approximately **10,600 full-time equivalent employees**, an increase from 10,200 in the prior year[51](index=51&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic downturns, intense market competition, and operational threats like cybersecurity and supply chain disruptions - **Macroeconomic & Market Risks**: The business is sensitive to economic conditions impacting consumer spending on discretionary items, and intense competition poses a risk to market share and profitability[70](index=70&type=chunk)[71](index=71&type=chunk) - **Operational Risks**: The company is vulnerable to cybersecurity incidents, disruptions in its IT systems, supply chain interruptions, and fluctuations in raw material prices[75](index=75&type=chunk)[78](index=78&type=chunk)[82](index=82&type=chunk) - **Financial & Strategic Risks**: Failure to meet earnings expectations for acquired businesses could lead to **impairment charges**, and the company faces credit risk from wholesale customers[86](index=86&type=chunk)[90](index=90&type=chunk) - **Legal, Tax & Regulatory Risks**: Changes in trade policies, particularly **tariffs on goods from China**, could increase costs, and the company is subject to evolving data privacy regulations[93](index=93&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Unresolved Staff Comments](index=17&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[104](index=104&type=chunk) [Cybersecurity](index=18&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity program with board-level oversight and has experienced no material incidents to date - The company has a formal information security program with annual risk assessments and controls such as **EDR, MFA, and SIEM**[105](index=105&type=chunk) - Cybersecurity governance is overseen by the **Chief Information Officer (CIO)**, who reports to the Audit Committee and the Board of Directors[112](index=112&type=chunk) - The company is **not aware of any cybersecurity threat or incident** to date that has materially affected its business, operations, or financial condition[110](index=110&type=chunk) [Properties](index=19&type=section&id=Item%202.%20Properties) The company owns or leases 13.0 million square feet of property, primarily owning manufacturing plants and leasing retail and warehouse space Property Square Footage by Segment (as of April 26, 2025) | (Amounts in millions) | Square Feet | | :--- | :--- | | Wholesale | 8.6 | | Retail | 3.9 | | Corporate and Other | 0.5 | | **Total property** | **13.0** | - The company owns its world headquarters and all domestic manufacturing plants, while the majority of retail stores and warehouses are leased[113](index=113&type=chunk) [Legal Proceedings](index=19&type=section&id=Item%203.%20Legal%20Proceedings) Management does not expect any legal proceedings from the ordinary course of business to have a material impact on its financial statements - The company does not currently believe it is probable that it will have any additional loss from legal matters that would be material to its consolidated financial statements[114](index=114&type=chunk) [Mine Safety Disclosures](index=19&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[115](index=115&type=chunk) [Information About Our Executive Officers](index=20&type=section&id=Information%20About%20Our%20Executive%20Officers) This section lists the company's key executive officers, including the President and CEO, CFO, and Chief Commercial Officer - Key executive officers include: - Melinda D. Whittington, President and Chief Executive Officer - Taylor E. Luebke, Senior Vice President and Chief Financial Officer - Robert Sundy, President, La-Z-Boy Brand and Chief Commercial Officer - Rebecca M. Reeder, President, Retail La-Z-Boy Furniture Galleries - Michael A. Leggett, Senior Vice President and Chief Supply Chain Officer[117](index=117&type=chunk)[118](index=118&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock (NYSE: LZB) performance is detailed, alongside dividend policy and significant share repurchase activity in fiscal 2025 - The company's common stock trades on the NYSE under the symbol **"LZB"**[120](index=120&type=chunk) Issuer Purchases of Equity Securities (Fiscal 2025) | Period | Total Shares Repurchased | Total Spent | Shares Remaining in Plan | | :--- | :--- | :--- | :--- | | **Q4 FY2025** | 0.3 million | $13.5 million | 3.7 million | | **Full Year FY2025** | 2.0 million | $77.9 million | 3.7 million | 5-Year Stock Performance (Total Return on $100 Investment) | Company/Index | 4/25/2020 | 4/26/2025 | | :--- | :--- | :--- | | La-Z-Boy Incorporated | $100.00 | $203.90 | | S&P 500 Composite Index | $100.00 | $210.35 | | Dow Jones U.S. Furnishings Index | $100.00 | $192.81 | [Reserved](index=22&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item 6 is reserved[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Introduction and Strategy](index=22&type=section&id=Introduction%20and%20Strategy) The company is executing its "Century Vision" strategy to grow sales and market share by focusing on its La-Z-Boy and Joybird brands - The company's **"Century Vision" strategy** focuses on driving growth through its La-Z-Boy and Joybird brands with a consumer-first approach[130](index=130&type=chunk) - Strategic initiatives include expanding the La-Z-Boy brand reach via its **"Long Live the Lazy" campaign**, growing the store network, and profitably growing the Joybird brand[131](index=131&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) [Results of Operations (FY25 vs FY24)](index=24&type=section&id=Results%20of%20Operations%20(FY25%20vs%20FY24)) Consolidated sales grew 3.0% to $2.11 billion, but operating income fell 9.9% due to a goodwill impairment charge and margin compression Consolidated Results of Operations (FY25 vs FY24) | (Amounts in thousands) | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $2,109,207 | $2,047,027 | 3.0% | | Operating income | $135,837 | $150,796 | (9.9)% | | Operating margin | 6.4% | 7.4% | -100 bps | - The decline in consolidated operating margin was primarily driven by a **$20.6 million non-cash goodwill impairment charge** for the UK businesses[149](index=149&type=chunk)[141](index=141&type=chunk) Retail Segment Performance (FY25 vs FY24) | (Amounts in thousands) | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $898,370 | $855,126 | 5.1% | | Operating income | $105,417 | $111,682 | (5.6)% | | Operating margin | 11.7% | 13.1% | -140 bps | Wholesale Segment Performance (FY25 vs FY24) | (Amounts in thousands) | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Sales | $1,479,819 | $1,447,278 | 2.2% | | Operating income | $82,213 | $99,373 | (17.3)% | | Operating margin | 5.6% | 6.9% | -130 bps | - The Corporate and Other segment's operating loss decreased by $8.5 million, primarily due to improved performance at **Joybird, which reached breakeven profit**[159](index=159&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with $328.4 million in cash, driven by increased operating cash flow Cash Flow Summary (FY2025 vs FY2024) | (Amounts in thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $187,271 | $158,127 | | Net cash used for investing activities | ($98,389) | ($81,554) | | Net cash used for financing activities | ($102,612) | ($81,227) | | **Change in cash and cash equivalents** | **($12,649)** | **($5,580)** | - **Cash and cash equivalents stood at $328.4 million** at the end of fiscal 2025, and the company has **no borrowings outstanding** under its $200 million credit facility[164](index=164&type=chunk)[167](index=167&type=chunk) - Key uses of cash in fiscal 2025 included **$74.3 million for capital expenditures**, **$29.5 million for acquisitions**, **$77.9 million for share repurchases**, and **$35.0 million for dividends**[169](index=169&type=chunk)[170](index=170&type=chunk)[178](index=178&type=chunk) [Critical Accounting Estimates](index=29&type=section&id=Critical%20Accounting%20Estimates) Key estimates include goodwill valuation, which resulted in a $20.6 million impairment for the UK unit, and product warranty liabilities - **Goodwill impairment testing** is a critical estimate, and in fiscal 2025, the company performed a quantitative test on its UK and Joybird reporting units[179](index=179&type=chunk)[180](index=180&type=chunk) - The UK reporting unit's goodwill of **$20.6 million was fully impaired** and written down to zero due to declining financial performance[182](index=182&type=chunk) - The Joybird reporting unit's estimated fair value **exceeded its carrying value by approximately 16%**, so no impairment was recorded[181](index=181&type=chunk)[293](index=293&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency, commodity and transportation costs, and duties and tariffs - The company is exposed to market risk from foreign currency changes, but the effect is not currently expected to be material[190](index=190&type=chunk) - Significant risk exists from fluctuations in **commodity prices** (steel, wood, foam) and **transportation costs**, which could impact margins[191](index=191&type=chunk) - The company is exposed to market risk from **duties and tariffs** on imported materials and finished goods, which could increase costs[192](index=192&type=chunk)[193](index=193&type=chunk) [Financial Statements and Supplementary Data](index=33&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements, auditor's report, and notes for fiscal year 2025 Consolidated Statement of Income (Fiscal Years Ended) | (Amounts in thousands) | April 26, 2025 | April 27, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | Sales | $2,109,207 | $2,047,027 | $2,349,433 | | Gross profit | $926,418 | $881,670 | $964,733 | | Operating income | $135,837 | $150,796 | $211,439 | | Net income attributable to La-Z-Boy | $99,556 | $122,626 | $150,664 | | Diluted EPS | $2.35 | $2.83 | $3.48 | Consolidated Balance Sheet (As of) | (Amounts in thousands) | April 26, 2025 | April 27, 2024 | | :--- | :--- | :--- | | Total current assets | $805,688 | $836,808 | | Total assets | $1,922,162 | $1,913,442 | | Total current liabilities | $420,791 | $437,281 | | Total equity | $1,031,976 | $1,013,360 | | **Total liabilities and equity** | **$1,922,162** | **$1,913,442** | - The independent auditor identified two **Critical Audit Matters** for the fiscal 2025 audit: the goodwill impairment assessments of the Joybird and United Kingdom reporting units[207](index=207&type=chunk)[210](index=210&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=71&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting principles or financial disclosure - None[363](index=363&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the end of fiscal 2025 - Based on an evaluation, the CEO and CFO concluded that the company's **disclosure controls and procedures are effective**[363](index=363&type=chunk) - There were **no changes in internal control over financial reporting** during the fourth quarter of fiscal 2025 that materially affected these controls[365](index=365&type=chunk) [Other Information](index=71&type=section&id=Item%209B.%20Other%20Information) This section discloses the adoption of a Rule 10b5-1 trading plan by a member of the Board of Directors - On March 11, 2025, Director Janet Kerr adopted a **Rule 10b5-1 trading plan** for the sale of up to 3,372 shares of common stock[366](index=366&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=71&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[368](index=368&type=chunk) Part III Items 10 through 14 incorporate information by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Shareholders [Directors, Executive Officers, and Corporate Governance](index=71&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on directors, officers, and governance is incorporated by reference from the 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Annual Meeting of Shareholders Proxy Statement[369](index=369&type=chunk) [Executive Compensation](index=72&type=section&id=Item%2011.%20Executive%20Compensation) Detailed information on executive and director compensation is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement, covering various aspects of executive compensation[372](index=372&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=72&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Details on security ownership and equity compensation plans are incorporated by reference from the 2025 Proxy Statement Equity Compensation Plan Information (as of April 26, 2025) | Plan Category | Securities to be Issued Upon Exercise (i) | Weighted-Average Exercise Price (ii) | Securities Remaining for Future Issuance (iii) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by shareholders | 2,099,790 | $29.91 | 2,717,757 | [Certain Relationships and Related Transactions, and Director Independence](index=72&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[377](index=377&type=chunk) [Principal Accountant Fees and Services](index=73&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2025 Proxy Statement - Information required by this item is incorporated by reference from the company's 2025 Proxy Statement[378](index=378&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=73&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed with the Form 10-K, including financial statements, schedules, and various exhibits - This item lists all financial statements, schedules, and exhibits filed with the report[379](index=379&type=chunk) - **Financial Statement Schedule II**—Valuation and Qualifying Accounts for the last three fiscal years is included[381](index=381&type=chunk) - Exhibits filed include governance documents, credit agreements, management compensation plans, and **CEO/CFO certifications**[382](index=382&type=chunk)[383](index=383&type=chunk) [Form 10-K Summary](index=75&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[385](index=385&type=chunk)

[Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) La-Z-Boy reported strong Q4 and full-year fiscal 2025 results, with consolidated sales growing 3% to $571 million and $2.1 billion respectively, alongside robust operating cash flow and increased shareholder returns [Fourth Quarter & Full Year Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20%26%20Full%20Year%20Fiscal%202025%20Highlights) La-Z-Boy achieved strong Q4 and full-year fiscal 2025 results, with consolidated sales growing 3% to $571 million and $2.1 billion respectively, alongside robust operating cash flow and increased shareholder returns Fiscal 2025 Fourth Quarter Financial Highlights | Metric | Value ($ millions) | Change vs. Prior Year | | :--- | :--- | :--- | | Consolidated Delivered Sales | $571 | +3% | | Retail Segment Delivered Sales | - | +8% | | Wholesale Segment Delivered Sales | - | +2% | | GAAP Operating Margin | 5.2% | - | | Adjusted Operating Margin | 9.4% | Flat | | GAAP Diluted EPS | $0.36 | - | | Adjusted Diluted EPS | $0.92 | - | | Operating Cash Flow | $62 | +17% | Fiscal 2025 Full Year Financial Highlights | Metric | Value ($ millions) | Change vs. Prior Year | | :--- | :--- | :--- | | Consolidated Delivered Sales | $2,100 | +3% | | Retail Segment Delivered Sales | - | +5% | | Wholesale Segment Delivered Sales | - | +2% | | Joybird Delivered Sales | - | +5% | | GAAP Operating Margin | 6.4% | -20 bps | | Adjusted Operating Margin | 7.6% | - | | GAAP Diluted EPS | $2.35 | - | | Adjusted Diluted EPS | $2.92 | - | | Operating Cash Flow | $187 | +18% | | Returned to Shareholders | $113 | - | - The company-owned La-Z-Boy Furniture Galleries store base grew to **203 stores**, now representing **55% of the total network**[4](index=4&type=chunk)[6](index=6&type=chunk) - For the full year, the company added **11 new stores** and acquired **7 independent stores**[4](index=4&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributes strong performance to the Century Vision strategy, expanding direct-to-consumer reach and supply chain efficiency, confident in outperforming peers despite economic uncertainty - The company is executing its Century Vision strategy, focusing on growing its direct-to-consumer business and owning the end-to-end consumer experience[6](index=6&type=chunk) - The company-owned store footprint has grown to **over 200 stores**, nearly doubling in the last 10 years and now representing **55% of the total network**[6](index=6&type=chunk) - The core North America La-Z-Boy wholesale business achieved sales growth and margin expansion for **four consecutive quarters** in fiscal 2025[6](index=6&type=chunk) - Despite expecting continued economic uncertainty, management is confident in the business model's strength to outperform peers, leveraging its **98-year history**, strong balance sheet, and agile supply chain[6](index=6&type=chunk) [First Quarter Outlook](index=2&type=section&id=First%20Quarter%20Outlook) For Q1 fiscal 2026, La-Z-Boy anticipates outperforming the industry with modest sales growth and an adjusted operating margin of 5.5% to 7.0%, despite temporary pressures and distribution network investments Q1 Fiscal 2026 Guidance | Metric | Guidance Range ($ millions) | | :--- | :--- | | Delivered Sales | $490 - $510 | | Adjusted Operating Margin | 5.5% - 7.0% | - The company expects to outperform the industry, driven by growth in its company-owned Retail segment and core North America La-Z-Boy wholesale business[7](index=7&type=chunk) - Q1 adjusted operating margin will be impacted by transitory pressure from UK and Joybird businesses and investment in a distribution and home delivery redesign project[7](index=7&type=chunk) [Detailed Financial and Segment Performance](index=3&type=section&id=Detailed%20Financial%20and%20Segment%20Performance) This section provides a detailed breakdown of the company's consolidated and segment-specific financial results for the reported periods [Consolidated Financial Results](index=3&type=section&id=Key%20Results) For Q4 FY2025, consolidated sales grew 3% to $571 million, while GAAP operating income fell 41% to $29.5 million due to a goodwill impairment charge, and adjusted operating income rose 3% to $53.6 million Q4 Fiscal 2025 vs. Q4 Fiscal 2024 | Metric | Q4 FY2025 ($ millions) | Q4 FY2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | $570.9 | $553.5 | +3% | | GAAP Operating Income | $29.5 | $50.1 | -41% | | Adjusted Operating Income | $53.6 | $52.1 | +3% | | GAAP Diluted EPS | $0.36 | $0.91 | -60% | | Adjusted Diluted EPS | $0.92 | $0.95 | -3% | Full Year Fiscal 2025 vs. Full Year Fiscal 2024 | Metric | FY2025 ($ millions) | FY2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | $2,109.2 | $2,047.0 | +3% | | GAAP Operating Income | $135.8 | $150.8 | -10% | | Adjusted Operating Income | $160.8 | $159.4 | +1% | | GAAP Diluted EPS | $2.35 | $2.83 | -17% | | Adjusted Diluted EPS | $2.92 | $2.98 | -2% | [Retail Segment Performance](index=3&type=section&id=Retail%20Segment) The Retail segment reported an 8% increase in delivered sales to $247 million in Q4, driven by new and acquired stores and positive same-store sales growth, though adjusted operating margin decreased due to new store investments - Delivered sales increased **8% to $247 million**, primarily due to growth from acquired and new stores[12](index=12&type=chunk) - Written sales for company-owned stores increased **3%**, but written same-store sales decreased **5%**, as weak industry traffic was partially offset by higher average ticket and design sales[11](index=11&type=chunk) - Adjusted operating margin was **13.1%**, down **110 basis points** from the prior year, due to investment in new stores[12](index=12&type=chunk) [Wholesale Segment Performance](index=4&type=section&id=Wholesale%20Segment) The Wholesale segment's sales increased 2% to $402 million in Q4, driven by the core North America business, with adjusted operating margin remaining flat at 8.5% due to offsetting factors including an international customer transition - Sales increased **2% to $402 million**, driven by growth in the core North America La-Z-Boy wholesale business[17](index=17&type=chunk) - Performance was partially offset by the continued impact of a significant customer transition in the international wholesale business[17](index=17&type=chunk) - Adjusted operating margin was **flat at 8.5%** versus the prior year, as margin expansion in the core North America business was offset by the international customer transition and incremental tariff expenses[17](index=17&type=chunk) [Corporate & Other (including Joybird)](index=4&type=section&id=Corporate%20%26%20Other) In the Corporate & Other segment, Joybird's written sales decreased 21% and delivered sales decreased 2% to $36 million, primarily due to economic trends impacting its online consumer base, though its adjusted operating margin remained positive and relatively flat - Joybird written sales decreased **21%** due to economic and industry trends impacting its online consumer base[17](index=17&type=chunk) - Joybird delivered sales decreased **2% to $36 million**[17](index=17&type=chunk) - Joybird's adjusted operating margin was **positive and relatively flat** versus the prior year[17](index=17&type=chunk) [Financial Position and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) This section details the company's strong financial position, including cash reserves, debt status, and cash flow activities for the fiscal year [Balance Sheet and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%2C%20Fiscal%202025) The company maintained a strong financial position, ending fiscal 2025 with $328 million in cash and no external debt, while operating cash flow increased 18% to $187 million, supporting capital expenditures and $113 million in shareholder returns - Ended the fiscal year with **$328 million in cash** and **no external debt**[17](index=17&type=chunk)[35](index=35&type=chunk) Fiscal 2025 Cash Flow & Shareholder Returns | Metric | FY2025 ($ millions) | Change vs. FY2024 | | :--- | :--- | :--- | | Operating Cash Flow | $187 | +18% | | Capital Expenditures | $74 | +39% | | Free Cash Flow | $113 | +8% | | Share Repurchases | $78 | +48% | | Dividends | $35 | +7% | | Total Cash Returns | $113 | +32% | - The quarterly dividend was raised by **10% to $0.22** in the third quarter, representing the **fourth consecutive annual dividend increase**[4](index=4&type=chunk)[17](index=17&type=chunk) [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed financial statements and reconciliations of GAAP to adjusted financial measures, offering a comprehensive view of the company's financial performance and position [Notes on Adjusted Financial Measures](index=5&type=section&id=Notes%20on%20Adjusted%20Financial%20Measures) The company uses adjusted financial measures to assess ongoing performance by excluding certain items like a $20.6 million goodwill impairment charge and supply chain optimization charges, providing a clearer view of long-term profitability trends - Beginning in Q4 FY2025, the company renamed its Non-GAAP financial measures to 'adjusted' financial measures, with no change in calculation methodology[20](index=20&type=chunk) - Q4 FY2025 adjusted results exclude a **$20.6 million pre-tax goodwill impairment charge** related to the UK wholesale and manufacturing businesses[21](index=21&type=chunk) - Q4 FY2025 adjustments also include a **$3.2 million pre-tax charge** for UK supply chain optimization and **$0.3 million in purchase accounting charges**[21](index=21&type=chunk) - Full-year FY2025 adjusted results exclude the same UK goodwill impairment and supply chain charges, along with **$1.2 million in purchase accounting charges**[24](index=24&type=chunk)[28](index=28&type=chunk) [Consolidated Statement of Income](index=8&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20STATEMENT%20OF%20INCOME) The consolidated statement of income details the company's revenues, costs, and profits, showing sales of $2.11 billion and a net income of $99.6 million for the year ended April 26, 2025, impacted by a significant goodwill impairment charge Consolidated Income Statement Data (Year Ended) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Sales | $2,109,207 | $2,047,027 | | Gross Profit | $926,418 | $881,670 | | Operating Income | $135,837 | $150,796 | | Goodwill Impairment | $20,581 | $0 | | Net Income Attributable to La-Z-Boy | $99,556 | $122,626 | | Diluted EPS | $2.35 | $2.83 | [Consolidated Balance Sheet](index=9&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20BALANCE%20SHEET) The consolidated balance sheet shows the company's financial position at year-end, with total assets of $1.92 billion, $328.4 million in cash, and total equity of $1.03 billion as of April 26, 2025 Consolidated Balance Sheet Data (Year-End) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Cash and equivalents | $328,449 | $341,098 | | Total current assets | $805,688 | $836,808 | | Total assets | $1,922,162 | $1,913,442 | | Total current liabilities | $420,791 | $437,281 | | Total equity | $1,031,976 | $1,013,360 | | Total liabilities and equity | $1,922,162 | $1,913,442 | [Consolidated Statement of Cash Flows](index=10&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the fiscal year ended April 26, 2025, the company generated $187.3 million in net cash from operating activities, while using $98.4 million for investing and $102.6 million for financing activities, resulting in a $12.6 million decrease in cash Consolidated Cash Flow Data (Year Ended) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $187,271 | $158,127 | | Net cash used for investing activities | ($98,389) | ($81,554) | | Net cash used for financing activities | ($102,612) | ($81,227) | | Change in cash | ($12,649) | ($5,580) | | Cash at end of period | $328,449 | $341,098 | [Reconciliation of GAAP to Adjusted Financial Measures](index=13&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20ADJUSTED%20FINANCIAL%20MEASURES) This section reconciles GAAP results to adjusted figures, showing how Q4 GAAP operating income of $29.5 million was adjusted by $24.1 million to $53.6 million, and full-year GAAP operating income of $135.8 million was adjusted by $25.0 million to $160.8 million, providing a clearer view of core operational performance Q4 FY2025 GAAP to Adjusted Reconciliation (Operating Income) | (in thousands) | Amount | | :--- | :--- | | GAAP operating income | $29,527 | | Purchase accounting charges | $256 | | Supply chain optimization charges | $3,247 | | Goodwill impairment | $20,581 | | **Adjusted operating income** | **$53,611** | Full Year FY2025 GAAP to Adjusted Reconciliation (Operating Income) | (in thousands) | Amount | | :--- | :--- | | GAAP operating income | $135,837 | | Purchase accounting charges | $1,161 | | Supply chain optimization charges | $3,247 | | Goodwill impairment | $20,581 | | **Adjusted operating income** | **$160,826** |

Core Insights - La-Z-Boy Incorporated reported strong fourth quarter results for fiscal 2025, with sales of $571 million, a 3% increase compared to the prior year [3][6] - The company achieved an operating margin of 5.2% on a GAAP basis and 9.4% on an adjusted basis, with diluted earnings per share of $0.36 and $0.92 respectively [3][6] - The company returned $113 million to shareholders, marking an increase of over 30% from the previous year [3][6] Fiscal 2025 Fourth Quarter Highlights - Consolidated delivered sales reached $571 million, up 3% year-over-year [6] - Retail segment sales increased by 8%, while wholesale segment sales grew by 2% [6][15] - The company-owned La-Z-Boy Furniture Galleries network expanded by six stores, representing 55% of the total network [6][15] Retail Segment Performance - Written sales for the Retail segment grew by 3%, but same-store sales decreased by 5% due to challenges in the housing market [4][15] - Delivered sales in the Retail segment increased by 8% to $247 million, driven by new and acquired stores [15][23] - The operating margin for the Retail segment was 13.1%, down 110 basis points compared to the prior year [15] Wholesale Segment Performance - Sales in the Wholesale segment increased by 2% to $402 million, primarily due to growth in the core North America La-Z-Boy wholesale business [15][44] - The operating margin for the Wholesale segment decreased to 2.5% from 8.1% in the previous year [15] Financial Overview - The company generated $62 million in operating cash flow for the fourth quarter, a 17% increase year-over-year [6][23] - For the full fiscal year, operating cash flow was $187 million, up 18% from the prior year [6][23] - The company ended the quarter with $328 million in cash and no external debt [23] Future Outlook - The company anticipates continued volatility in the industry due to economic uncertainty but expects to outperform peers driven by growth in the Retail segment and core wholesale business [5][8] - For the first quarter of fiscal 2026, sales are projected to be between $490 million and $510 million, reflecting modest growth in a challenging consumer environment [8]

Core Insights - La-Z-Boy Incorporated is expected to report fourth-quarter earnings of 93 cents per share, a decrease from 95 cents per share in the same period last year, with projected quarterly revenue of $557.44 million, slightly up from $553.53 million a year earlier [1] Group 1: Earnings Expectations - Analysts anticipate La-Z-Boy's quarterly earnings to be 93 cents per share, down from 95 cents per share year-over-year [1] - The company projects quarterly revenue of $557.44 million, compared to $553.53 million in the previous year [1] Group 2: Analyst Upgrades and Price Target - Keybanc analyst Bradley Thomas upgraded La-Z-Boy from Sector Weight to Overweight, setting a price target of $46 [2] Group 3: Dividend Insights - La-Z-Boy currently offers an annual dividend yield of 2.26%, translating to a quarterly dividend of 22 cents per share, or 88 cents annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $265,357 or around 6,818 shares is required [3] - For a more modest monthly income of $100, an investment of $53,087 or about 1,364 shares is necessary [3] Group 4: Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4][5]

Core Viewpoint - La-Z-Boy Incorporated is set to report its Fiscal 2025 Fourth Quarter results on June 17, 2025, with a subsequent investor conference call scheduled for June 18, 2025 [1] Company Overview - La-Z-Boy Incorporated is a vertically integrated furniture retailer and manufacturer, known for its iconic recliner invented in 1927, and is committed to quality and consumer compassion [4] - The company operates nearly 200 company-owned La-Z-Boy Furniture Galleries stores and is part of a broader network of over 360 stores, including an e-commerce platform [5] Conference Call Details - The conference call will be webcast live, with slides available at the company's investor relations website [2] - Dial-in numbers for the live conference call are provided for both U.S./Canada and international callers, along with a participant access code [2] - An archive of the conference call will be available online for one year, with a telephone replay accessible for two weeks [3]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Financial Highlights - La-Z-Boy declared a quarterly cash dividend of $0.22 per share, to be paid on June 16, 2025, to shareholders of record as of June 3, 2025 [1] Retail and Wholesale Segments - The Retail segment includes nearly 200 company-owned La-Z-Boy Furniture Galleries stores, part of a network of over 360 stores nationwide, complemented by La-Z-Boy.com [3] - Joybird, an e-commerce retailer and manufacturer of modern upholstered furniture, operates 12 stores in the U.S. [3] - The Wholesale segment manufactures custom furniture for its Furniture Galleries and various retail channels, including brands like England Furniture Co., Kincaid, American Drew, and Hammary [3]

Company Performance - La-Z-Boy (NYSE: LZB) reported strong fiscal 3Q25 results with year-over-year sales growth across all segments, particularly in Joybird, its direct-to-consumer online segment [1] Investment Strategy - The investment approach focuses on identifying value opportunities, especially in small and mid-cap sectors where market inefficiencies are prevalent [1] - The strategy includes looking for industry leaders in out-of-favor sectors, quality companies facing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - The analysis emphasizes balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, particularly for financial sector investments [1] Professional Background - The investment philosophy is supported by over 10 years of experience in financial sector consulting, which aids in identifying overlooked opportunities [1]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Retail Segment - The Retail segment includes nearly 200 company-owned La-Z-Boy Furniture Galleries stores, part of a broader network of over 360 stores nationwide [3] - Joybird, an e-commerce retailer and manufacturer of modern upholstered furniture, operates 12 stores in the U.S. [3] Wholesale Segment - In the Wholesale segment, La-Z-Boy manufactures custom furniture for its Furniture Galleries and various retail channels [3] - England Furniture Co. offers custom upholstered furniture, while casegoods brands Kincaid, American Drew, and Hammary provide diverse home furnishings [3] Upcoming Events - La-Z-Boy executives will participate in a fireside chat at the Raymond James 46th Annual Institutional Investors Conference on March 3, 2025, at 4:00 p.m. ET [1] - The presentation will be webcast live and archived on the company's investor relations website [1]

Group 1 - La-Z-Boy Incorporated, a furniture retailer and wholesaler, experienced a 4% increase in share price on February 19th [1] - The share price surge occurred the day after management provided positive updates [1] Group 2 - Crude Value Insights offers an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account, cash flow analyses of exploration and production firms, and live sector discussions [2]

Financial Data and Key Metrics Changes - Consolidated delivered sales reached $522 million, up 4% year-over-year [8][36] - Non-GAAP operating margin expanded by 20 basis points to 6.8% [9][36] - GAAP diluted EPS was $0.68, compared to $0.66 in the prior year [37] Business Segment Data and Key Metrics Changes - Retail segment sales increased by 11% to $228 million, driven by same-store sales growth [9][38] - Wholesale segment delivered sales grew by 2% to $363 million, supported by the North America La-Z-Boy brand [40] - Joybird reported delivered sales of $37 million, up 9% year-over-year, achieving breakeven operating profit [41][28] Market Data and Key Metrics Changes - Total written sales for the company-owned retail segment increased by 15% year-over-year [13] - Written same-store sales for the entire La-Z-Boy Furniture Galleries network increased by 5% [14] - The furniture and home furnishing industry grew by 5% during the fiscal third quarter [15] Company Strategy and Development Direction - The Century Vision strategy aims to drive top-line growth at double the market rate and maintain double-digit operating margins [17][50] - The company plans to expand its La-Z-Boy Furniture Galleries network to over 400 stores in the coming years [19] - A focus on enhancing brand reach through strategic partnerships and expanding distribution channels is emphasized [22][76] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a volatile operating environment but remains optimistic about growth opportunities despite industry challenges [11][33] - The company expects fourth-quarter delivered sales in the range of $545 million and non-GAAP operating margin between 8.5% and 9.5% [50] - Management is monitoring the evolving global tariff and trade environment while planning for various scenarios [51][117] Other Important Information - La-Z-Boy was named to Forbes' list of America's best large employers for 2025 [56] - The company has a strong balance sheet with $315 million in cash and no externally funded debt [46] Q&A Session Summary Question: Can you provide insights on the trends throughout the quarter? - Management noted that strength was strongest during the holiday period, with overall year-on-year strength across all three months of the quarter [62] Question: What are the expectations for operating margins in the fourth quarter? - Management highlighted that core North America La-Z-Boy wholesale business has shown margin expansion, while challenges remain in the international business [68][70] Question: What is the status of strategic partnerships? - Management confirmed ongoing investments in comfort studios and emphasized the importance of existing partnerships while exploring new opportunities [74][78] Question: How is the core wholesale segment performing? - Management expressed satisfaction with progress in the core North America wholesale business, noting improvements in supply chain efficiency [85] Question: What is the outlook for Joybird? - Management indicated that Joybird is positioned for growth with plans to open three to four new stores next year, while maintaining financial discipline [106]