La-Z-Boy Incorporated Reports Solid First Quarter Results with Sales Up 3%; First Quarter Operating Cash Flow Doubles to $52 Million

Financial Performance - Consolidated delivered sales for the first quarter of fiscal 2025 were $496 million, reflecting a 3% increase compared to the prior year [1][7] - The GAAP diluted earnings per share (EPS) was $0.61, down from $0.63 in the previous year, while Non-GAAP diluted EPS remained stable at $0.62 [1][7][28] - Operating cash flow for the quarter was $52 million, doubling the amount from the same period last year [1][10] Segment Performance - The Wholesale segment saw sales increase by 5% to $351 million, driven by higher delivered volume to external customers [9][26] - The Retail segment experienced a 4% increase in written sales, but same-store sales decreased by 3% due to lower traffic and softer demand [2][8] - The Retail segment's delivered sales decreased by 3% to $202 million, impacted by the prior year's backlog deliveries [8][9] Operating Margins - The GAAP operating margin for the consolidated results was 6.5%, down from 7.2% in the previous year, while the Non-GAAP operating margin decreased to 6.6% from 7.0% [1][7][30] - The Retail segment's GAAP operating margin was 10.2%, down from 14.1%, reflecting fixed cost deleverage [8][30] - The Wholesale segment's Non-GAAP operating margin increased to 6.9%, up 10 basis points from the previous year [9][30] Cash Flow and Shareholder Returns - The company generated $52 million in operating cash flow and returned approximately $42 million to shareholders, including $34 million in share repurchases and $8 million in dividends [10][11] - The company declared a quarterly cash dividend of $0.20 per share, payable on September 16, 2024 [11] Strategic Outlook - The company remains committed to its Century Vision strategy, focusing on long-term growth through investments in retail execution and store expansion [3][4] - Despite current macroeconomic challenges, the company expects modest sales growth in the second quarter of fiscal 2025, projecting sales between $495 million and $515 million [4][10]