La-Z-Boy(LZB)2024-06-17 20:38Financial 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].