La-Z-Boy(LZB) - 2026 Q1 - Quarterly Results

Financial Performance - Total sales for the first quarter of fiscal 2026 were $492 million, a decrease of 1% compared to the prior year[2] - Sales for the quarter ended July 26, 2025, were $492,229,000, a decrease of 0.6% compared to $495,532,000 for the same quarter in 2024[28] - Gross profit for the quarter was $209,197,000, down from $213,343,000, resulting in a gross margin of 42.5%[28] - Operating income decreased to $21,987,000 from $32,370,000, reflecting a decline of 32% year-over-year[28] - Net income attributable to La-Z-Boy Incorporated was $18,204,000, compared to $26,159,000 in the prior year, representing a decrease of 30.4%[28] - Adjusted net income attributable to La-Z-Boy Incorporated was $19,335,000, down from $26,453,000, with adjusted diluted EPS at $0.47 compared to $0.62[35] Sales Segments - Retail segment written sales increased by 5%, while same-store sales decreased by 4% due to challenging consumer demand[4] - Joybird's written sales decreased by 14%, with delivered sales down 20% to $28 million[12] - The wholesale segment reported sales of $352,957,000, while the retail segment reported $207,150,000, showing a slight increase in both segments compared to the previous year[34] Margins and Earnings - GAAP operating margin was 4.5%, down from 6.5% in the prior year, while adjusted operating margin was 4.8%, down from 6.6%[6] - Diluted earnings per share (EPS) were $0.44 on a GAAP basis and $0.47 on an adjusted basis, representing a decrease of 28% and 24% respectively compared to the previous year[6] - Fiscal second quarter sales are expected to be in the range of $510-530 million, with adjusted operating margin projected between 4.5-6.0%[6] Cash Flow and Financial Health - The company generated $36 million in operating cash flow for the quarter[4] - The company ended the quarter with $319 million in cash and no external debt[18] - Cash and cash equivalents at the end of the period were $318,544,000, a decrease from $342,270,000 at the end of the same quarter last year[31] - Total current liabilities decreased to $416,290,000 from $420,791,000, indicating improved short-term financial health[30] Acquisitions and Recognition - La-Z-Boy announced the acquisition of a 15-store network in the Southeast region, expected to close in late October[4] - La-Z-Boy was named by Newsweek as one of America's Best Retailers in 2025, ranking 1 in the furniture category[3] Assets - Total assets increased slightly to $1,925,953,000 from $1,922,162,000[30] - The company incurred $1,309,000 in distribution transformation charges during the quarter, impacting operating income[35]