La-Z-Boy Incorporated Reports Strong Fourth Quarter and Full Year Results; Sales Growth Across All Segments for the Year and Strong Operating Cash Flow Performance

Core Insights - La-Z-Boy Incorporated reported strong fourth quarter results for fiscal 2025, with sales of $571 million, a 3% increase compared to the prior year [3][6] - The company achieved an operating margin of 5.2% on a GAAP basis and 9.4% on an adjusted basis, with diluted earnings per share of $0.36 and $0.92 respectively [3][6] - The company returned $113 million to shareholders, marking an increase of over 30% from the previous year [3][6] Fiscal 2025 Fourth Quarter Highlights - Consolidated delivered sales reached $571 million, up 3% year-over-year [6] - Retail segment sales increased by 8%, while wholesale segment sales grew by 2% [6][15] - The company-owned La-Z-Boy Furniture Galleries network expanded by six stores, representing 55% of the total network [6][15] Retail Segment Performance - Written sales for the Retail segment grew by 3%, but same-store sales decreased by 5% due to challenges in the housing market [4][15] - Delivered sales in the Retail segment increased by 8% to $247 million, driven by new and acquired stores [15][23] - The operating margin for the Retail segment was 13.1%, down 110 basis points compared to the prior year [15] Wholesale Segment Performance - Sales in the Wholesale segment increased by 2% to $402 million, primarily due to growth in the core North America La-Z-Boy wholesale business [15][44] - The operating margin for the Wholesale segment decreased to 2.5% from 8.1% in the previous year [15] Financial Overview - The company generated $62 million in operating cash flow for the fourth quarter, a 17% increase year-over-year [6][23] - For the full fiscal year, operating cash flow was $187 million, up 18% from the prior year [6][23] - The company ended the quarter with $328 million in cash and no external debt [23] Future Outlook - The company anticipates continued volatility in the industry due to economic uncertainty but expects to outperform peers driven by growth in the Retail segment and core wholesale business [5][8] - For the first quarter of fiscal 2026, sales are projected to be between $490 million and $510 million, reflecting modest growth in a challenging consumer environment [8]