La-Z-Boy(LZB)2025-02-18 21:18Financial 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]