La-Z-Boy(LZB) - 2025 Q3 - Quarterly Report

Financial Performance - Consolidated sales increased by $21.4 million, or 4$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$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$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$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$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$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].