Financial Performance - Consolidated sales increased by $21.4 million, or 4%, in the third quarter of fiscal 2025 compared to the same period last year, driven by same-store sales growth in the Retail business and higher volume in the Joybird business [105]. - Operating income for the third quarter of fiscal 2025 was $35.2 million, an increase of 8% from $32.6 million in the same quarter last year [104]. - The operating margin improved to 6.7% in the third quarter of fiscal 2025, up from 6.5% in the prior year [104]. - For the first nine months of fiscal 2025, consolidated sales rose by $44.8 million, or 3%, primarily due to incremental sales from Retail acquisitions and higher delivered volume in the Joybird business [105]. - Gross margin increased by 170 basis points in Q3 2025 and 90 basis points in the first nine months of fiscal 2025 compared to the same periods a year ago [107]. - Retail segment sales rose by $23.0 million, or 11.2%, in Q3 2025, and $24.4 million, or 3.9%, in the first nine months of fiscal 2025 compared to the same periods a year ago [110]. - Same-store sales increased by 7% in Q3 2025 and 1% in the first nine months of fiscal 2025 compared to the same periods a year ago [111]. - Wholesale segment sales increased by $6.6 million, or 2%, in Q3 2025, and $23.0 million, or 2%, in the first nine months of fiscal 2025 compared to the same periods a year ago [115]. - Operating income for the Retail segment was $24.5 million in Q3 2025, a 9.6% increase compared to the same period a year ago, while it decreased by 8.2% in the first nine months of fiscal 2025 [109]. - Joybird sales increased by $3.0 million in Q3 2025 and $8.4 million in the first nine months of fiscal 2025 compared to the same periods a year ago [118]. Strategic Initiatives - The strategic plan, Century Vision, aims to grow sales and market share while strengthening operating margins by 2027 [95]. - The company plans to enhance its enterprise capabilities to support growth and potential acquisitions, emphasizing an agile supply chain and modern technology [99]. - Joybird, acquired in fiscal 2019, is focused on profitable growth through increased digital marketing spend and expansion of product assortment [98]. - The company expects to grow its Retail segment through increased company-owned store count and upgrading existing locations [101]. Cash Flow and Investments - Net cash provided by operating activities was $125.3 million in the first nine months of fiscal 2025, an increase of $19.9 million compared to the same period a year ago [128]. - Net cash used for investing activities in the first nine months of fiscal 2025 was $71.2 million, an increase of $17.2 million compared to the same period last year, primarily due to higher capital expenditures [129]. - Cash used for capital expenditures was $51.5 million, up from $38.0 million in the same period last year, with full-year fiscal 2025 capital expenditures expected to be between $70 million and $80 million [131]. - Cash used for acquisitions totaled $24.8 million, primarily for retail businesses in Davenport, Iowa, Melbourne and Cocoa, Florida, and Toledo, Ohio [131]. - Cash paid to shareholders in quarterly dividends amounted to $25.9 million, with the board of directors expected to continue declaring regular dividends [137]. - The company anticipates continued stock repurchases in fiscal 2025, subject to market conditions, with 4.0 million shares remaining available for repurchase [132]. - Cash from the sale of investments, net of purchases, was $4.9 million during the first nine months of fiscal 2025 [131]. Financial Position - As of January 25, 2025, the company had no borrowings outstanding under its $200 million unsecured revolving credit facility, which matures on October 15, 2026 [130]. - The effective tax rate was 25.1% for Q3 2025 and 25.6% for the first nine months of fiscal 2025, compared to 20.2% and 24.5% for the same periods in fiscal 2024 [123]. - The company remains in compliance with financial covenants under the Credit Facility, ensuring adequate liquidity for operations over the next 12 months [130]. - The company recorded $4.0 million in severance-related expenses and $3.0 million in accelerated depreciation due to the closure of a cut and sew facility in Mexico [92]. - SG&A expenses as a percentage of sales increased by 150 basis points in Q3 2025 and 70 basis points in the first nine months of fiscal 2025 compared to the same periods a year ago [107].

Financial Performance - Consolidated sales for the third quarter totaled $522 million, representing a 4% increase compared to the prior year[2] - Diluted earnings per share (EPS) for both GAAP and Non-GAAP was $0.68, up from $0.66 in the previous year[6] - Consolidated sales for the quarter ended January 25, 2025, were $521.8 million, an increase of 4.3% from $500.4 million in the same quarter last year[28] - Operating income for the quarter was $35.2 million, up 8.3% from $32.6 million in the same quarter last year[28] - Net income attributable to La-Z-Boy Incorporated for the quarter was $28.4 million, compared to $28.6 million in the same quarter last year, reflecting a slight decrease of 0.7%[28] - Basic net income per share attributable to La-Z-Boy Incorporated was $0.69, an increase from $0.67 in the same quarter last year[28] - Non-GAAP net income attributable to La-Z-Boy Incorporated for the nine months ended January 25, 2025, was $85,298,000, compared to $88,326,000 for the same period last year, a decline of 3.4%[35] Sales Performance - Retail segment sales increased by 11%, driven by same-store sales growth and acquisitions[3] - Written same-store sales for the Retail segment rose 7%, while total written sales increased by 15% year-over-year[2] - Joybird's written sales increased by 10%, with delivered sales up 9% to $37 million[18] - The wholesale segment reported sales of $362.998 million for the quarter, compared to $356.375 million in the same quarter last year[34] - The retail segment achieved sales of $227.7 million, an increase from $204.7 million in the same quarter last year[34] Profitability Metrics - Operating margin improved by 20 basis points to 6.7% on a GAAP basis and 6.8% on a Non-GAAP basis[3] - Gross profit for the quarter was $231.4 million, representing a gross margin of 44.3%, compared to $213.3 million and a gross margin of 42.6% in the prior year[28] - GAAP gross profit for the quarter ended January 25, 2025, was $231,365,000, an increase from $213,254,000 for the same quarter last year, representing an increase of 8.8%[35] - Non-GAAP gross profit for the nine months ended January 25, 2025, was $675,496,000, compared to $645,553,000 for the same period last year, reflecting a growth of 4.6%[35] - The retail segment's GAAP operating income for the quarter was $24,457,000, representing 10.7% of sales, compared to $22,313,000 and 10.9% of sales in the same quarter last year[40] - Non-GAAP operating income for the wholesale segment for the quarter was $23,620,000, maintaining a margin of 6.5%, consistent with the previous year[40] - Consolidated GAAP operating income for the quarter was $35,168,000, which is 6.7% of sales, compared to $32,561,000 and 6.5% of sales in the same quarter last year[40] Shareholder Returns - The company returned $90 million to shareholders year-to-date, a 40% increase compared to the prior year[2] - The Board of Directors declared a quarterly cash dividend of $0.22 per share, payable on March 14, 2025[14] Cash Flow and Assets - Cash flow from operations for the quarter was $57 million, up from $48 million in the same period last year[18] - The company reported net cash provided by operating activities of $125.3 million for the nine months ended January 25, 2025, compared to $105.4 million for the same period last year[31] - Total assets as of January 25, 2025, were $1.96 billion, up from $1.91 billion as of April 27, 2024[30] - Cash and equivalents at the end of the period were $314.6 million, down from $341.1 million at the beginning of the period[31] Future Outlook - For the fiscal fourth quarter, sales are expected to be in the range of $545-565 million, with Non-GAAP operating margin projected between 8.5-9.5%[5] - The company expects continued focus on supply chain optimization, with charges of $3,966,000 recorded in the previous nine months[35] - The company recorded $3.0 million in accelerated depreciation related to the relocation of upholstery production, impacting the first nine months of fiscal 2024[37]

Core Insights - La-Z-Boy Incorporated has been recognized as one of America's Best Large Employers by Forbes for 2025, highlighting its excellence across various dimensions such as atmosphere, salary, diversity, and working conditions [1][2] - The recognition is based on an independent survey of over 217,000 U.S. employees from companies with at least 1,000 employees, with more than 6.5 million evaluations considered [2] Company Values and Mission - The company emphasizes its commitment to innovation, craftsmanship, and integrity, with a focus on fostering an environment where employees can thrive [3] - La-Z-Boy's mission is rooted in core values of courage, curiosity, and compassion, aiming to deliver comfort through its products and support for employees and communities [3][4] Employee Engagement and Well-being - Over recent years, La-Z-Boy has prioritized employee connectedness, safety, and career alignment, which has contributed to overall performance and business success [4] - The company is dedicated to creating a workplace where employees feel valued and inspired, reflecting its core values that drive its culture [5] Company Overview - La-Z-Boy operates nearly 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of over 360 stores, along with an e-commerce platform [7] - The company manufactures custom furniture through its Wholesale segment, which includes brands like England Furniture Co., Kincaid®, American Drew®, and Hammary® [7]

Core Insights - La-Z-Boy Incorporated has been recognized as one of America's Best Large Employers by Forbes for 2025, highlighting its excellence across various dimensions such as atmosphere, salary, diversity, and workplace environment [1][2]. Company Overview - La-Z-Boy Incorporated is a global leader in residential furniture manufacturing and retail, known for its commitment to quality and innovation since its founding in 1927 [6]. - The company operates nearly 200 company-owned La-Z-Boy Furniture Galleries® stores and has a broader network of over 360 stores nationwide, along with an e-commerce platform [7]. Employee Commitment - The company emphasizes employee connectedness, physical safety, personal well-being, job performance, and career alignment, which have contributed to its overall business success [4]. - La-Z-Boy's mission is rooted in core values of courage, curiosity, and compassion, aiming to create a supportive environment for employees [3][5]. Recognition and Impact - The recognition by Forbes is seen as a testament to the dedication of La-Z-Boy's employees and the company's efforts to foster a thriving workplace [3][5]. - The company has released a 2024 Impact Report detailing its human-centered approach and investments in workforce development [4].

Core Viewpoint - La-Z-Boy Incorporated is set to report its Fiscal 2025 Third Quarter results on February 18, 2025, with a subsequent investor conference call scheduled for February 19, 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 193 company-owned La-Z-Boy Furniture Galleries stores and is part of a network of over 350 stores, including an e-commerce platform, La-Z-Boy.com [5]. - Joybird, a subsidiary of La-Z-Boy, is an e-commerce retailer specializing in modern upholstered furniture with 12 stores in the U.S. [5]. - La-Z-Boy also manufactures custom furniture for various retail channels, including brands like England Furniture Co., Kincaid, American Drew, and Hammary [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights LaZBoy (LZB) as a strong value stock based on its Zacks Rank and valuation metrics [2][3][6] Value Investing - Value investing is a preferred strategy for identifying strong stocks, focusing on key valuation metrics to find undervalued stocks with profit potential [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] LaZBoy (LZB) Analysis - LaZBoy currently has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the strongest value stocks [3] - LZB has a Price-to-Book (P/B) ratio of 1.84, which is lower than the industry average of 1.97, suggesting it is solidly valued [4] - Over the past 12 months, LZB's P/B ratio has fluctuated between 1.38 and 1.87, with a median of 1.64 [4] - The Price-to-Cash Flow (P/CF) ratio for LZB is 7.56, significantly lower than the industry average of 14.50, indicating potential undervaluation [5] - LZB's P/CF has ranged from 5.68 to 7.72 over the past 52 weeks, with a median of 6.80 [5] - These metrics suggest that LZB is likely undervalued and has a strong earnings outlook, making it an impressive value stock at the moment [6]

Corporate Strategy and Sustainability - La-Z-Boy Incorporated has released its fiscal year 2024 Impact Report, emphasizing sustainability as a core business principle integrated into its corporate strategy and operations [1] - The company's Century Vision strategy aims to elevate brand reach, strengthen enterprise capabilities, and drive profitable, sustainable growth leading up to its 100th anniversary in 2027 [5] - La-Z-Boy Incorporated has received SBTi validation for its near-term targets, including a 64% reduction in Scope 1 emissions, a 62% reduction in Scope 2 emissions, and a 51% reduction in Scope 3 emissions by fiscal year 2032, advancing toward its 2050 net-zero goal [6] Environmental and Operational Achievements - The company achieved a 96% recycling rate for all non-hazardous waste and a 20% year-over-year reduction in hazardous waste generation [6] - Renewable energy sources covered 75% of U.S. and 64% of global electricity consumption [6] - La-Z-Boy Incorporated adopted the TranZform Initiative across all manufacturing facilities, focusing on sustainability and employee empowerment through six core initiatives [6] Community and Social Impact - The La-Z-Boy Foundation donated over $1.4 million, and as the official furniture partner for Ronald McDonald House Charities, the company gifted over 16,000 pieces globally [6] - The company preserved, restored, and rewilded a 120-acre plot surrounding its World Headquarters in Monroe, Michigan, and planted a community garden that harvested 283 pounds of produce [6] Business Operations and Market Presence - La-Z-Boy Incorporated operates 193 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of over 350 stores nationwide, including La-Z-Boy.com [7] - Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. [7] - The Wholesale segment includes manufacturing for Furniture Galleries® and other retail channels, with brands like England Furniture Co., Kincaid®, American Drew®, and Hammary® offering custom and casegoods furniture [7]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, operating as a vertically integrated furniture retailer and manufacturer [2] - The company was founded in 1927 with the invention of the iconic recliner and is committed to uncompromising quality and compassion for its consumers [2] - La-Z-Boy operates 193 company-owned La-Z-Boy Furniture Galleries stores and is part of a broader network of over 350 La-Z-Boy Furniture Galleries nationwide [3] - The company also owns Joybird, an e-commerce retailer and manufacturer of modern upholstered furniture with 12 stores in the US [3] - In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for its Furniture Galleries and various retail channels, including England Furniture Co, Kincaid, American Drew, and Hammary [3] Upcoming Event - La-Z-Boy's Board Chair, President, and CEO Melinda D Whittington and SVP and CFO Taylor Luebke will present at the 2025 ICR Conference on January 13, 2025, at 4:30 pm Eastern Time [1] - The presentation will be webcast live and archived at https://lazboy.gcs-web.com/ [1]

It's been a mixed bag for the furniture industry. While things have cooled down for most, La-Z-Boy (NYSE: LZB ) has been heating up. Their solid Q2 results show that their Century Vision strategy isI am an equities market enthusiast that has tried many different approaches over a decade, and found that value investing aligns best with my personality and has produced the best results for me. With rare exceptions, I don't believe investors can beat the market benchmark (S&P 500) over long timeframes, so a lar ...

Core Viewpoint - La-Z-Boy Incorporated has announced leadership changes, with Melinda Whittington being elected as Chair of the Board, while Michael Lawton returns to his role as independent Lead Director, effective December 11, 2024 [1][2][4]. Leadership Changes - Melinda Whittington, who has been the President and CEO since 2021, will now also serve as Chair of the Board, reflecting the Board's confidence in her leadership to drive long-term value [1][2][4]. - Michael Lawton, who has been Chair since May 2022, will revert to his previous position as independent Lead Director, indicating a shift in leadership structure [1][5]. Leadership Background - Melinda Whittington has a strong background in finance, having previously served as CFO at Allscripts Healthcare Solutions and Kraft Foods Group, and has been with La-Z-Boy since 2021 [4]. - Michael Lawton has been a director since 2013 and has extensive experience, including roles at Domino's Pizza and Gerber Products Company, showcasing a wealth of leadership experience [5]. Company Overview - La-Z-Boy Incorporated operates as a vertically integrated furniture retailer and manufacturer, known for its iconic recliner since 1927, and is committed to quality and consumer compassion [6]. - The company has 193 company-owned La-Z-Boy Furniture Galleries® stores and a broader network of over 350 stores, along with an e-commerce platform through La-Z-Boy.com [7].