La-Z-Boy(US:LZB)2025-08-19 20:19Financial Performance - Consolidated sales decreased by $3.3 million, or 1%, in Q1 of fiscal 2026 compared to the same period last year[94]. - Operating income fell to $21.987 million, a decrease of 32.1% from $32.370 million in Q1 of fiscal 2025[93]. - Total written sales increased by 5% in Q1 of fiscal 2026 compared to the same period last year, while written same-store sales decreased by 4% due to lower consumer demand[100]. - Corporate and Other sales decreased by $7.5 million in Q1 of fiscal 2026, with Joybird sales specifically declining by $6.8 million[108]. - Net cash provided by operating activities was $36.3 million in Q1 of fiscal 2026, a decrease of $16.0 million compared to the same period last year[117]. - Cash and cash equivalents were $318.5 million as of July 26, 2025, down from $328.4 million at April 26, 2025[115]. Segment Performance - Retail segment sales increased by $4.8 million, or 2%, primarily due to $8.4 million from retail store acquisitions in fiscal 2025[99]. - The Retail segment's operating margin decreased by 390 basis points in Q1 of fiscal 2026 compared to the same period last year[101]. - Operating margin for the Retail segment decreased to 6.3% from 10.2% in the prior year[97]. - The Wholesale segment's sales increased by $2.1 million, or 1%, in Q1 of fiscal 2026, driven by growth in the North America La-Z-Boy branded wholesale business[103]. Cost and Expenses - SG&A expenses as a percentage of sales increased by 140 basis points in Q1 of fiscal 2026 compared to the same period last year[98]. - SG&A expenses as a percentage of sales increased by 360 basis points in Q1 of fiscal 2026, primarily due to fixed cost deleverage from lower same-store sales[105]. - Gross margin decreased by 60 basis points in Q1 of fiscal 2026, impacted by higher supply chain costs and increased promotional activity[98]. - Gross margin decreased by 30 basis points in Q1 of fiscal 2026, primarily due to increased promotional activity and higher distribution costs[105][106]. Strategic Initiatives - Joybird is focusing on profitable growth through additional small-format stores and increased digital marketing spend[90]. - The company aims to enhance enterprise capabilities to support growth and potential acquisitions[91]. - The strategic plan, Century Vision, aims for growth in sales and market share by 2027[85]. Capital and Tax - Capital expenditures in fiscal 2026 are expected to be in the range of $90 to $100 million, primarily related to new stores and manufacturing investments[119]. - The effective tax rate was 25.0% for Q1 of fiscal 2026, compared to 25.5% for the same period last year[112].