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La-Z-Boy Incorporated Reports First Quarter Results; Led By Retail And Wholesale Delivered Sales Growth And Wholesale Margin Expansion; Retail Written Sales Up 5%
La-Z-BoyLa-Z-Boy(US:LZB) Globenewswireยท2025-08-19 20:15

Core Insights - La-Z-Boy Incorporated reported a 1% decrease in sales for the first quarter of fiscal 2026, totaling $492 million, with growth in Retail and Wholesale segments offset by a decline in Joybird sales [2][12] - The company achieved an operating margin of 4.5% on a GAAP basis and 4.8% on an adjusted basis, reflecting challenges in consumer demand and investments in new stores [2][12] - Diluted earnings per share were $0.44 on a GAAP basis and $0.47 on an adjusted basis, both lower than the previous year [2][12] Financial Performance - Retail segment written sales increased by 5%, while same-store sales decreased by 4%, indicating a challenging consumer environment [3][17] - Wholesale segment delivered sales increased by 1%, driven by the core North America La-Z-Boy wholesale business [4][7] - The company returned $22 million to shareholders during the quarter, including $13 million in share repurchases and $9 million in dividends [2][17] Strategic Developments - La-Z-Boy announced the acquisition of a 15-store network in the Southeast region, expected to close in late October [4][7] - The company was recognized by Newsweek as one of America's Best Retailers in 2025, ranking 1 in the furniture category [5] - The company is actively adjusting operations to navigate the current environment while continuing to invest in its Century Vision strategy for long-term growth [4][5] Outlook - For the second quarter, La-Z-Boy expects sales to be in the range of $510-530 million, with an adjusted operating margin of 4.5-6.0% [6][7] - The company is balancing optimism about long-term industry fundamentals with a pragmatic approach to current consumer demand [5][6] Cash Flow and Liquidity - The company generated $36 million in operating cash flow for the quarter and ended with $319 million in cash and no external debt [7][17] - Free cash flow for the quarter was $17.8 million, down from $36.7 million in the prior year [9][17] Segment Analysis - Retail segment delivered sales increased by 2% to $207 million, driven by new and acquired stores [17] - Joybird sales decreased significantly, with written sales down 14% and delivered sales down 20% to $28 million [12][17] - The Wholesale segment's sales increased to $353 million, supported by growth in the core North America business [12][37]