Core Insights - La-Z-Boy Incorporated has opened a newly renovated showroom at High Point Market, showcasing its commitment to comfort and innovation across generations [1][2] - The showroom renovation is part of the company's Century Vision strategy, aimed at enhancing brand experience and product offerings [1][2] - The investment reflects La-Z-Boy's financial stability despite challenging industry and macroeconomic conditions [2] Company Overview - La-Z-Boy Incorporated is a global leader in residential furniture manufacturing and retail, known for its iconic recliner invented in 1927 [3] - The company operates a vertically integrated business model, focusing on quality and consumer compassion [3] Retail Segment - The Retail segment includes approximately 190 company-owned La-Z-Boy Furniture Galleries® stores, part of a broader network of over 350 locations [4] - Joybird®, an e-commerce retailer under La-Z-Boy, operates 12 stores in the U.S. [4] - The Wholesale segment manufactures custom furniture for various retail channels, including England Furniture Co. and casegoods brands like Kincaid®, American Drew®, and Hammary® [4]

MONROE, Mich., Oct. 10, 2024 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today announced that Bob Lucian, Senior Vice President and Chief Financial Officer, will retire at the end of the fiscal year, effective April 26, 2025. Taylor Luebke, Vice President, Finance and Treasurer, will succeed Lucian as Senior Vice President and Chief Financial Officer beginning January 1, 2025. Luebke has nearly 20 years of finance experience, ...

MONROE, Mich., Sept. 16, 2024 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today announced that Matt Baer has been named to the company's Board of Directors, effective January 1, 2025. The appointment will expand the Board to 11 members. Mr. Baer is a seasoned and customer-centric executive who brings extensive retail leadership experience across a variety of disciplines to the Board. He currently serves as Chief Executive Off ...

La-Z-Boy Inc. NYSE: LZB stock dropped 7% after the home furnishings retailer reported earnings on August 20. The report itself was fine with revenue and earnings beating analysts' expectations and revenue coming in higher year-over-year (YOY). The company also noted that its Wholesale segment was the key reason the company posted growth in delivered sales for the quarter. This is part of the company's Century Vision channel expansion strategy that has goals of growing revenue at 2x the industry average and ...

Financial Data and Key Metrics Changes - Consolidated delivered sales for Q1 2025 were $496 million, an increase of 3% year-over-year [4][19] - Non-GAAP operating margin was 6.6%, with non-GAAP EPS at $0.62, unchanged from the prior year [4][19] - Operating cash flow was $52 million, double the amount from the previous year [4][23] - The company ended the quarter with $342 million in cash and no external debt [4][23] Business Line Data and Key Metrics Changes - Retail segment delivered sales decreased by 3% to $202 million, impacted by prior year backlog deliveries [20] - Wholesale segment delivered sales increased by 5% to $351 million, driven by higher volume to external customers [20][21] - Joybird reported delivered sales of $35 million, down 3% year-over-year, but showed improved operating performance [21][16] Market Data and Key Metrics Changes - Same-store sales for company-owned retail declined by 3%, consistent with industry trends [7][19] - The overall furniture and home furnishings industry also saw a 3% decline in sales for the quarter [7] Company Strategy and Development Direction - The company is focused on its Century Vision strategy, aiming for top-line growth at double the market rate and consistent double-digit operating margins [9][25] - Plans to expand the La-Z-Boy Furniture Galleries network to approximately 400 stores over the next several years [10] - The company is enhancing its channel strategy to increase brand reach and improve customer access [12] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the furniture industry due to high mortgage rates and economic uncertainty but expressed optimism about potential Fed rate cuts stimulating demand [5][18] - The company expects continued challenges in the macro environment but remains confident in outperforming the market [26][18] Other Important Information - The company returned $42 million to shareholders through dividends and share repurchases [24] - Capital expenditures for the quarter were $16 million, primarily for retail store openings and upgrades [24] Q&A Session Summary Question: Traffic trends at retail during the quarter - Management noted that traffic remains challenged but strengthened around major holidays like Memorial Day [32][33] Question: Progress on restructuring and margin expectations - Management is making progress on margin improvements but noted delays in hiring and productivity in Mexico [34] Question: Changes in advertising plans due to demand - Management is continuously optimizing advertising spend in response to current consumer demand [35] Question: Competitive landscape and pricing - Management highlighted opportunities to gain market share due to industry consolidation and noted that input costs remain high [38][40] Question: Retail margins outlook - Management expects retail margins to improve in the second half of the year, typically the strongest period for the segment [41] Question: Drivers of wholesale segment sales increase - Management attributed the increase to a return of external customers and new partnerships, such as with Rooms To Go [42][44] Question: Impact of casegoods business on margins - Management confirmed that surcharges have been implemented to offset higher container rates, but there may be a temporary mismatch in costs [53]

Core Viewpoint - La-Z-Boy Incorporated (LZB) reported solid first-quarter fiscal 2025 results, with earnings meeting expectations and revenues exceeding estimates, driven by increased delivered volume in the Wholesale segment [1][4]. Financial Performance - Adjusted earnings for the quarter were 62 cents per share, aligning with the Zacks Consensus Estimate and the previous year's figures [4]. - Consolidated delivered sales reached $496 million, surpassing the consensus estimate of $486 million by 1.9% and increasing 3% from $482 million in the prior-year quarter [4]. Segment Performance - **Retail Segment**: Delivered sales decreased 3% to $202 million due to component shortages affecting backlog deliveries. However, written sales increased 4% year over year, driven by growth in new and acquired stores [5][6]. - **Wholesale Segment**: Sales rose 5% year over year to $351 million, supported by increased delivered volume to external customers, although partially offset by lower intercompany sales [7]. - **Corporate & Other**: Sales declined 3.4% year over year to $39 million, with Joybird's written sales increasing 9% year over year, while delivered sales fell 3% to $35 million [8]. Financial Position - As of July 27, 2024, the company had $342.3 million in cash and equivalents, a slight increase from $341.1 million at the end of fiscal 2024. Net cash from operations for the quarter was $52 million, compared to $26 million in the prior-year period [9]. Future Guidance - For the second quarter of fiscal 2025, the company anticipates delivered sales between $495 million and $515 million, compared to $511 million in the same quarter last year. The non-GAAP operating margin is expected to be in the range of 6-7%, down from 7.9% in the prior year [10]. Strategic Focus - The company remains committed to long-term investments despite short-term challenges in the furniture industry, aiming for modest sales improvement in the second quarter supported by seasonality. The Century Vision strategy focuses on expanding the Retail segment through enhanced in-store execution, new store openings, and acquisitions of independent La-Z-Boy Furniture Galleries [2][3].

La-Z-Boy (LZB) came out with quarterly earnings of $0.62 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this furniture company would post earnings of $0.68 per share when it actually produced earnings of $0.95, delivering a surprise of 39.71%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. La-Z-Boy, which belongs to ...

Financial Performance - Consolidated delivered sales for the first quarter of Fiscal 2025 were $496 million, up 3% compared to the prior year[1]. - GAAP diluted EPS decreased to $0.61 from $0.63, while Non-GAAP diluted EPS remained at $0.62[6]. - Operating cash flow for the quarter was $52 million, doubling from $26 million in the same period last year[8]. - Sales for the quarter ended July 27, 2024, were $495,532, an increase of 2% from $481,651 in the same quarter last year[19]. - Gross profit for the quarter was $213,343, compared to $205,728 in the prior year, reflecting a gross margin improvement[19]. - Operating income decreased to $32,370 from $34,526 year-over-year, indicating a decline of approximately 6%[19]. - Net income attributable to La-Z-Boy Incorporated was $26,159, down from $27,479, representing a decrease of about 4.8%[19]. - Basic net income per share was $0.62, slightly down from $0.64 in the previous year[19]. - Consolidated operating income for the quarter was $32,370, a decrease of 6.3% from $34,526 in the same quarter last year[25]. - Non-GAAP operating income was $32,764, down from $33,751, reflecting a decline of 2.9% year-over-year[27]. - GAAP net income attributable to La-Z-Boy Incorporated was $26,159, compared to $27,479 in the previous year, representing a decrease of 4.8%[27]. - Diluted EPS for GAAP net income was $0.61, down from $0.63 in the same quarter last year[27]. - Non-GAAP net income attributable to La-Z-Boy was $26,453, slightly down from $26,945, a decrease of 1.8% year-over-year[27]. Segment Performance - Retail segment written sales increased 4%, but same-store sales decreased 3% due to lower traffic and softer demand[6]. - Wholesale segment sales rose 5% to $351 million, driven by higher delivered volume to external customers[7]. - Joybird's written sales increased 9%, while delivered sales decreased 3% to $35 million[7]. - Wholesale segment sales to external customers rose to $256,020, up 8.4% from $236,251 year-over-year[25]. - Retail segment sales decreased to $202,370, down 2.1% from $208,243 in the prior year[25]. - The wholesale segment's operating income margin was 6.8%, slightly down from 7.0% in the prior year[29]. - The retail segment's operating income margin decreased to 10.2% from 14.1% year-over-year[29]. Cash Flow and Shareholder Returns - La-Z-Boy returned approximately $42 million to shareholders, including $34 million in share repurchases and $8 million in dividends[8]. - The company ended the quarter with $342 million in cash and no external debt[8]. - Net cash provided by operating activities was $52,318, significantly higher than $25,913 in the same quarter last year[23]. - The company reported a net cash used for investing activities of $17,193, compared to $12,679 in the prior year[23]. Assets and Equity - Total current assets as of July 27, 2024, were $834,375, a decrease from $836,808 as of April 27, 2024[21]. - Total assets increased to $1,917,615 from $1,913,442, showing a slight growth[21]. - Total equity decreased to $1,010,476 from $1,013,360, indicating a slight decline in shareholder equity[21]. Future Outlook - The company expects second quarter sales to be in the range of $495-515 million, with Non-GAAP operating margin projected between 6-7%[2].

Financial Performance - Consolidated delivered sales for the first quarter of fiscal 2025 were $496 million, reflecting a 3% increase compared to the prior year [1][7] - The GAAP diluted earnings per share (EPS) was $0.61, down from $0.63 in the previous year, while Non-GAAP diluted EPS remained stable at $0.62 [1][7][28] - Operating cash flow for the quarter was $52 million, doubling the amount from the same period last year [1][10] Segment Performance - The Wholesale segment saw sales increase by 5% to $351 million, driven by higher delivered volume to external customers [9][26] - The Retail segment experienced a 4% increase in written sales, but same-store sales decreased by 3% due to lower traffic and softer demand [2][8] - The Retail segment's delivered sales decreased by 3% to $202 million, impacted by the prior year's backlog deliveries [8][9] Operating Margins - The GAAP operating margin for the consolidated results was 6.5%, down from 7.2% in the previous year, while the Non-GAAP operating margin decreased to 6.6% from 7.0% [1][7][30] - The Retail segment's GAAP operating margin was 10.2%, down from 14.1%, reflecting fixed cost deleverage [8][30] - The Wholesale segment's Non-GAAP operating margin increased to 6.9%, up 10 basis points from the previous year [9][30] Cash Flow and Shareholder Returns - The company generated $52 million in operating cash flow and returned approximately $42 million to shareholders, including $34 million in share repurchases and $8 million in dividends [10][11] - The company declared a quarterly cash dividend of $0.20 per share, payable on September 16, 2024 [11] Strategic Outlook - The company remains committed to its Century Vision strategy, focusing on long-term growth through investments in retail execution and store expansion [3][4] - Despite current macroeconomic challenges, the company expects modest sales growth in the second quarter of fiscal 2025, projecting sales between $495 million and $515 million [4][10]

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on fundamental analysis and traditional valuation metrics to identify undervalued stocks [2][3]. Company Analysis - LaZBoy (LZB) is highlighted as a strong value stock, currently holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating its attractiveness to value investors [3][6]. - LZB's Price-to-Book (P/B) ratio is reported at 1.73, which is significantly lower than the industry average of 3.69, suggesting that the stock is undervalued [4]. - The P/B ratio for LZB has fluctuated between a high of 1.84 and a low of 1.26 over the past 12 months, with a median of 1.53, further supporting its valuation appeal [4]. - Additionally, LZB's Price-to-Cash Flow (P/CF) ratio stands at 7.25, compared to the industry average of 14.83, indicating a favorable valuation based on cash flow strength [5]. - The P/CF ratio for LZB has ranged from a high of 7.96 to a low of 5.68 in the past year, with a median of 7.15, reinforcing the notion of the stock being undervalued [5][6].