La-Z-Boy(US:LZB)2022-08-22 16:00Financial Performance - Consolidated sales increased by $79.3 million, or 15.1%, in the first quarter of fiscal 2023 compared to the same period a year ago, reaching $604.1 million[90]. - Operating income rose to $52.6 million, reflecting a 53.2% increase from the previous year, with an operating margin of 8.7%[90]. - The Wholesale segment's sales increased by $48.3 million, or 12.3%, totaling $441.8 million, driven by pricing actions and favorable product mix[94]. - The Retail segment experienced a significant sales increase of $54.2 million, or 29.8%, reaching $236.0 million, with operating income up 86.7% to $38.2 million[97]. - Retail segment sales increased by $54.2 million, or 30%, in Q1 fiscal 2023, driven by a 25% increase in delivered same-store sales[98]. - Operating margin for the Retail segment improved by 500 basis points in Q1 fiscal 2023 compared to the same period last year[99]. Profitability and Margins - Gross margin for the Wholesale segment improved by 150 basis points, aided by pricing and surcharges despite challenges from higher raw material and freight costs[95]. - The Retail segment's operating margin increased to 16.2%, up from 11.2% in the previous year, indicating improved profitability[97]. - Gross margin increased by 120 basis points in Q1 fiscal 2023, with a 610 basis point improvement from pricing actions, despite a 340 basis point decrease due to rising raw materials and freight costs[100]. - Selling, general and administrative expenses as a percentage of sales decreased by 70 basis points in the Wholesale segment due to higher sales volume[95]. - SG&A expense as a percentage of sales decreased by 580 basis points in Q1 fiscal 2023, primarily due to higher delivered sales relative to selling expenses[101]. Strategic Initiatives - The company plans to expand its retail distribution network, including increasing the number of company-owned stores and enhancing existing locations[86]. - Joybird brand growth is a focus, with increased digital marketing spend and expansion of product assortment to drive customer acquisition[89]. - The company aims to enhance its enterprise capabilities to support growth and potential acquisitions, leveraging a multi-channel distribution strategy[89]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $33.1 million in Q1 fiscal 2023, attributed to net income and a $25.1 million decrease in receivables[109]. - Cash used for capital expenditures was $21.0 million in Q1 fiscal 2023, with full-year capital expenditures expected to be between $85 million and $95 million[113]. - Cash, cash equivalents, and restricted cash totaled $241.4 million as of July 30, 2022, down from $248.9 million at April 30, 2022[107]. - The company had no borrowings outstanding under its $200 million credit facility as of July 30, 2022[110]. Taxation - Effective tax rate for Q1 fiscal 2023 was 26.5%, up from 25.9% in Q1 fiscal 2022[106].