Core Viewpoint - La-Z-Boy is strategically expanding its store network through acquisitions and organic growth, which has led to significant increases in operating income and a solid financial profile despite industry challenges [2][5][9]. Financial Performance - In FY2024, La-Z-Boy spent $39.4 million to acquire 11 Furniture Galleries stores and opened six new company-owned stores, with total capital expenditures of $53.6 million [2]. - Operating income rose from $30.4 million in FY2011 to $158.0 million in FY2024, reflecting a compound annual growth rate (CAGR) of 13.5% [2]. - The company's five-year average return on equity is 14.4% [2]. - La-Z-Boy's stock has appreciated approximately 64% over the past decade, with a current dividend yield of 2.22% [5]. Store Network Expansion - The total retail network expanded from 304 to 355 Furniture Galleries stores and from 526 to 528 Comfort Studios from FY2011 to FY2024 [6]. - La-Z-Boy now owns 187 Furniture Galleries stores, more than double the number from FY2011, with plans to continue acquiring 5-10 stores annually until at least FY2027 [6]. Industry Context - La-Z-Boy's revenue declined by 12.9% in FY2024, which is less severe compared to competitors experiencing declines over 20% [11]. - The company is positioned well to navigate current industry headwinds, leveraging a strong balance sheet with no interest-bearing debt and significant cash reserves of $347.9 million [11]. Future Outlook - The fair value estimate for La-Z-Boy's stock is $50.33, indicating a potential upside of 40% from the current stock price [4]. - Future growth is projected at 2% for FY2025, with a rebound to 7.5% growth in FY2026 as industry conditions improve [8]. - The company aims to achieve a double-digit operating margin as it continues to expand its retail network and acquire stores [18].

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has La-Z-Boy (LZB) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different sto ...

La-Z-Boy (LZB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. Therefore, the Zacks rating upgrade for La-Z-Boy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. Fundamentally speaking, rising earnings estimates and the consequent rating ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. One company to watch right now is LaZBoy (LZB) . LZB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.73, which compares to its i ...

LaZBoy (LZB) : This company which is one of the world's leading residential furniture producers, marketing furniture for every room of the home, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.8% over the last 60 days. See the full list of top ranked stocks here. Navios Maritime Partners (NMM) : This company which is an international owner and operator of dry cargo vessels, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Co ...

Financial Data and Key Metrics Changes - Consolidated delivered sales for Q4 2024 were $554 million, up 22% compared to the pre-pandemic fourth quarter but down 1% year-over-year due to the previous year's pandemic backlog deliveries [17][61] - For the full fiscal year, consolidated delivered sales were just over $2 billion, roughly flat year-over-year when adjusted for pandemic-related backlog deliveries [18][34] - Non-GAAP operating margin for Q4 was 9.4%, with non-GAAP EPS at $0.95, while GAAP diluted EPS was $0.91 [7][31] - Cash flow from operations was $158 million for the year, down from the previous year due to lower sales after fulfilling the pandemic backlog [8][37] Business Line Data and Key Metrics Changes - Retail segment delivered sales decreased by 6% year-over-year to $228 million, but were 50% higher than the pre-pandemic fourth quarter [62] - Wholesale segment delivered sales declined by 1% to $392 million, with growth in external wholesale sales offset by decreases in freight revenue [63] - Joybird's delivered sales were roughly flat at $37 million, with improvements in profitability due to lower freight and warranty expenses [64] Market Data and Key Metrics Changes - Written same-store sales for the entire La-Z-Boy Furniture Galleries network declined by 3% in Q4, outperforming the industry which contracted by 8% [51] - Written same-store sales for the company-owned retail segment decreased by 5% year-over-year [20] - The overall Furniture and Home Furnishings industry is facing challenges due to high mortgage rates and low housing turnover, impacting store traffic [53] Company Strategy and Development Direction - The company aims to drive disproportionate growth over the long term, targeting sales growth at double the market rate and consistent double-digit operating margins [11][69] - The Century Vision strategy focuses on expanding the company-owned retail network, which now represents over 53% of the total La-Z-Boy Furniture Galleries network [24] - The company is enhancing brand awareness through the "Long Live the Lazy" campaign and is committed to developing consumer-relevant products [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macroeconomic environment but remains optimistic about outperforming the market and achieving modest growth in fiscal 2025 [29][39] - The company expects industry challenges to persist, with potential improvements in demand anticipated later in fiscal 2025 as interest rates may decrease [39][128] - Management emphasizes the importance of maintaining a strong balance sheet and continuing share repurchases and dividends as part of their capital allocation strategy [38][71] Other Important Information - The company returned approximately $85 million to shareholders in fiscal 2024, including $33 million in dividends and repurchasing 1.6 million shares [68] - The effective tax rate for fiscal 2024 was 24.8%, down from 26.2% in the previous year, primarily due to non-taxable gains and increased R&D tax credits [36] Q&A Session Summary Question: How is the restructuring process progressing? - Management indicated that the restructuring is on track and expects a 50 to 60 basis points improvement in wholesale margin [46] Question: What are the expectations for same-store sales in the upcoming quarters? - Management expressed optimism about improving same-store sales, particularly following a solid start in May, despite the typically slow summer period [84][86] Question: What initiatives are expected to drive business growth? - Management highlighted the focus on expanding the company-owned retail network and improving supply chain agility as key drivers for growth [89][107] Question: How will margins be managed in a challenging environment? - Management noted that operational adjustments in plant hours and store staffing could help protect margins if the economic situation worsens [91] Question: What is the outlook for cash flow and capital expenditures? - Management expects capital expenditures to be in the range of $70 million to $80 million for fiscal 2025, with a focus on strengthening the company for future growth [71][125]

La-Z-Boy reported adjusted earnings of 95 cents per share, beating the Zacks Consensus Estimate of 68 cents per share. However, the bottom line declined 4% from 99 cents per share reported a year ago. Retail: Delivered sales fell 6% to $228 million from the prior year's levels, which included the completion of pandemic-related backlog deliveries. However, the reported figures show a 50% increase from pre-pandemic fourth-quarter fiscal 2019 tally. The segment's non-GAAP operating margin contracted 130 basis ...

Core Viewpoint - La-Z-Boy reported quarterly earnings that exceeded consensus estimates, but the company has faced challenges in revenue compared to the previous year Financial Performance - La-Z-Boy achieved quarterly earnings of $0.95 per share, surpassing the Zacks Consensus Estimate of $0.68 per share, though this is a decrease from $0.99 per share a year ago [2] - The company posted revenues of $553.54 million for the quarter ended April 2024, exceeding the Zacks Consensus Estimate by 6.70%, but down from $561.29 million in the same quarter last year [3] - The earnings surprise for the recent quarter was 39.71%, while the previous quarter saw a negative surprise of -10.67% [9] Market Performance - La-Z-Boy shares have declined approximately 8.7% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [4] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $478.5 million, and for the current fiscal year, it is $2.80 on revenues of $2.06 billion [6] Industry Context - The Furniture industry, to which La-Z-Boy belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom half [13] - Another company in the same industry, MillerKnoll, is expected to report revenues of $899.1 million, reflecting a 6% decline from the previous year [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 COMMISSION FILE NUMBER 1-9656 LA-Z-BOY INCORPORATED (Exact name of registrant as specified in its charter) Michigan 38-0751137 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) One La-Z-Boy Drive, Monroe, Michigan 48162-5138 (Address of principal executive offices) (Zip Code) FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Financial Performance - Consolidated sales for Q4 Fiscal 2024 totaled $554 million, a decrease of 1% year-over-year but up 22% compared to the pre-pandemic Q4 of Fiscal 2019[4]. - GAAP diluted EPS for Q4 was $0.91, an increase of 15% from $0.79 in the prior year, while Non-GAAP diluted EPS decreased by 4% to $0.95[8]. - Operating cash flow for the full year reached $158 million, with $53 million generated in Q4[5]. - Total sales for the quarter ended April 27, 2024, were $553.5 million, a decrease of 1.3% from $561.3 million in the same quarter last year[27]. - Gross profit for the quarter was $240.1 million, down from $248.6 million year-over-year, reflecting a gross margin of approximately 43.4%[27]. - Operating income for the quarter was $50.1 million, compared to $54.1 million in the prior year, indicating a decline of 7.3%[27]. - Net income attributable to La-Z-Boy Incorporated for the quarter was $39.3 million, an increase of 14.3% from $34.4 million in the same quarter last year[27]. - Diluted net income per share increased to $0.91 from $0.79, representing a growth of 15.2% year-over-year[27]. - Consolidated sales for the year ended April 27, 2024, were $2,047,027, down 12.9% from $2,349,433 for the year ended April 29, 2023[33]. - Net income for the year ended April 27, 2024, was $124,636, a decrease of 17.9% compared to $151,941 for the year ended April 29, 2023[31]. - Non-GAAP net income attributable to La-Z-Boy Incorporated for the year was $129,131,000, down from $167,080,000, representing a decrease of 22.7%[38]. Shareholder Returns - The company returned $85 million to shareholders through share repurchases and dividends, with a 10% increase in the quarterly dividend to $0.20[5]. - The company repurchased $52,773 in common stock, significantly higher than $5,004 in the previous year[31]. Future Outlook - For Fiscal 2025, the company expects delivered sales in Q1 to be between $475 million and $495 million, with Non-GAAP operating margin projected to be in the range of 6-7%[7]. - The company anticipates industry challenges with a potential decline of up to 5% in sales, but expects to outperform the market and achieve modest year-over-year sales growth[7]. - The company plans to open 12 to 15 new La-Z-Boy Furniture Galleries stores in Fiscal 2025 as part of its Century Vision strategy[7]. Balance Sheet and Cash Flow - The company ended the fiscal year with a strong balance sheet, holding $341 million in cash and no external debt[17]. - Total assets as of April 27, 2024, were $1.91 billion, up from $1.87 billion a year earlier, reflecting a growth of 2.9%[29]. - Current liabilities decreased to $437.3 million from $475.9 million, a reduction of 8.1% year-over-year[29]. - Shareholders' equity increased to $1.01 billion from $952.1 million, marking a growth of 6.2%[29]. - Net cash provided by operating activities was $158,127, a decrease of 23% from $205,167 in the previous year[31]. - Total cash, cash equivalents, and restricted cash at the end of the period were $341,098, a slight decrease from $346,678 at the beginning of the period[31]. Segment Performance - Written same-store sales for the Retail segment decreased by 5% year-over-year, impacted by lower traffic and economic conditions[12]. - Retail segment sales for the year ended April 27, 2024, were $855,126, a decline of 12.9% from $982,043 in the previous year[33]. - Operating income for the wholesale segment decreased to $99,373, down 13.8% from $115,215 in the previous year[33]. - The wholesale segment's GAAP operating income for the quarter was $31,709,000, representing 8.1% of sales, compared to 8.5% in the prior year[43]. - The retail segment's GAAP operating income for the quarter was $32,170,000, accounting for 14.1% of sales, down from 15.5% in the previous year[43]. Cost Management - The company incurred a pre-tax charge of $10.6 million related to an impairment of one investment, impacting overall financial performance[21]. - Supply chain optimization charges for the year totaled $4,468,000, compared to $1,621,000 in the previous year, indicating increased costs associated with supply chain adjustments[38]. Non-GAAP Measures - Management emphasized the importance of Non-GAAP financial measures for assessing ongoing performance, excluding various charges to provide clearer profitability trends[24]. - Non-GAAP gross profit for the year ended April 27, 2024, was $886,227,000, down from $967,095,000, reflecting a decline of 8.4%[38]. - Non-GAAP operating income for the year was $159,398,000, down from $223,203,000, indicating a decline of 28.6%[43].