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]

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 ...