La-Z-Boy(LZB) ZACKS·2024-08-21 15:41Core Viewpoint - La-Z-Boy Incorporated (LZB) reported solid first-quarter fiscal 2025 results, with earnings meeting expectations and revenues exceeding estimates, driven by increased delivered volume in the Wholesale segment [1][4]. Financial Performance - Adjusted earnings for the quarter were 62 cents per share, aligning with the Zacks Consensus Estimate and the previous year's figures [4]. - Consolidated delivered sales reached $496 million, surpassing the consensus estimate of $486 million by 1.9% and increasing 3% from $482 million in the prior-year quarter [4]. Segment Performance - Retail Segment: Delivered sales decreased 3% to $202 million due to component shortages affecting backlog deliveries. However, written sales increased 4% year over year, driven by growth in new and acquired stores [5][6]. - Wholesale Segment: Sales rose 5% year over year to $351 million, supported by increased delivered volume to external customers, although partially offset by lower intercompany sales [7]. - Corporate & Other: Sales declined 3.4% year over year to $39 million, with Joybird's written sales increasing 9% year over year, while delivered sales fell 3% to $35 million [8]. Financial Position - As of July 27, 2024, the company had $342.3 million in cash and equivalents, a slight increase from $341.1 million at the end of fiscal 2024. Net cash from operations for the quarter was $52 million, compared to $26 million in the prior-year period [9]. Future Guidance - For the second quarter of fiscal 2025, the company anticipates delivered sales between $495 million and $515 million, compared to $511 million in the same quarter last year. The non-GAAP operating margin is expected to be in the range of 6-7%, down from 7.9% in the prior year [10]. Strategic Focus - The company remains committed to long-term investments despite short-term challenges in the furniture industry, aiming for modest sales improvement in the second quarter supported by seasonality. The Century Vision strategy focuses on expanding the Retail segment through enhanced in-store execution, new store openings, and acquisitions of independent La-Z-Boy Furniture Galleries [2][3].