Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: La-Z-Boy (LZB) Analysis - La-Z-Boy (LZB) has shown a four-week price change of 15.3%, indicating strong investor interest [3] - LZB has gained 2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.26, suggesting it moves 26% higher than the market in either direction [4] - LZB holds a Momentum Score of B, indicating a favorable entry point for investors [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - LZB is trading at a Price-to-Sales ratio of 0.74, indicating it is reasonably valued at 74 cents for each dollar of sales [6] Group 3: Investment Opportunities - LZB is positioned for further growth, and there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - Consumers are becoming more deliberate in their big-ticket spending, leading to sharper demand fluctuations that require companies to adjust their production and promotional strategies [1][12] - Tariffs are increasingly seen as a permanent operating cost, with significant variations in corporate readiness across different sectors [1][3] - The tariff environment is now viewed as a mature phase, influencing corporate strategies and operational planning [1][4] Corporate Strategy and Tariffs - Companies are no longer questioning the continuation of tariffs but are focusing on how to strategically adapt to the ongoing global trade tensions [3][11] - Toyota experienced a $3 billion impact from tariffs but still raised its guidance, indicating a proactive approach to tariff management [3][4] - In contrast, Traton, Volkswagen's trucking subsidiary, reported a 39% decline in operating profit, highlighting the challenges some companies face in adapting to cost pressures [5] Operational Adjustments - Tariffs have become a competitive differentiator, revealing the strengths and weaknesses in corporate strategies, procurement flexibility, and operational coherence [6][9] - Companies are increasingly diversifying their supply chains as a growth strategy rather than a defensive measure [10] - Firms are adjusting their product evaluations and business units in response to tariff costs, often streamlining portfolios or shifting to higher-margin categories [10][11] Consumer Behavior and Market Dynamics - Consumers are strategically deferring big-ticket purchases, creating demand curves with sharper peaks and troughs, which forces companies to refine their production and promotional calendars [12] - Tariffs have raised input costs for various industries, including toy manufacturing and furniture, complicating the ability to pass these costs onto consumers [7][8] - Companies like Sony have successfully navigated the tariff landscape by implementing agile supply chain strategies, resulting in an 8% forecast increase [8]

Core Insights - ErgoSift is launching its 2025 Winter Campaign aimed at making ergonomic comfort accessible to a wider audience, emphasizing the importance of supportive seating for various activities such as working from home, studying, and gaming [1][21]. Product Overview - The M1 and M2 chairs are designed to bridge the gap between basic and expensive ergonomic chairs, focusing on spinal health, adjustability, and quality materials, providing premium comfort at reasonable prices [3][17]. - The M1 chair features high-resilience foam and a breathable mesh back, designed to reduce spinal strain during extended use [6][9]. - The M2 chair offers a range of adjustable features, including lumbar support, seat depth, and armrest adjustments, catering to diverse user needs and promoting better posture [12][18]. Key Features - M1 chair supports up to 250 lbs with a BIFMA-certified frame, ensuring durability and comfort for everyday use [9]. - M2 chair includes customizable lumbar support, adjustable seat depth, and multi-angle recline options, enhancing user comfort and adaptability [12][18]. - Both chairs are constructed with durable materials, designed to support users in motion and withstand daily use [16][21]. Company Vision - ErgoSift aims to promote healthier living by making ergonomic seating a standard rather than a luxury, focusing on user needs and continuous innovation [21][22].

Financial Data and Key Metrics Changes - The company reported significant challenges in the Chinese market, leading to the closure of 77 stores while opening 30 new ones, indicating a strategic shift in retail operations [9][12] - The impact of tariffs between the US and China has negatively affected sales and margins, particularly in the American market [10][11] Business Line Data and Key Metrics Changes - The company is actively restructuring its operations, focusing on optimizing costs and enhancing retail business flexibility [23] - The gross margin for the last quarter was reported at 34%, with expectations for improvement post-restructuring [28][30] Market Data and Key Metrics Changes - The company has faced a crisis in the Chinese market, which was previously a strong contributor to sales, necessitating a reevaluation of its retail strategy [9][12] - Despite challenges, the company has continued to invest in new product development and marketing initiatives to stimulate growth [20] Company Strategy and Development Direction - The company is implementing a multi-year restructuring plan aimed at optimizing its cost structure and enhancing operational efficiency [23] - There is a strong focus on expanding commercial initiatives, particularly in emerging markets, with several new projects in the pipeline [19][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing ongoing investments and strategic initiatives as key to overcoming current challenges [20] - The CEO emphasized the importance of adapting to market conditions and improving profitability through operational efficiencies [30][33] Other Important Information - The company has engaged in various trade fairs and congresses to promote its brand and products, indicating a commitment to maintaining market presence despite challenges [16][18] - A credit line of $15 million has been extended by the majority shareholder to support short-term needs and ensure financial stability during the restructuring process [22][24] Q&A Session Summary Question: What are the terms of the $15 million credit line? - The credit line is a zero-interest loan aimed at supporting the restructuring plan and ensuring financial stability [26][24] Question: Can you quantify the value of non-core assets? - The total net asset value is around $70 million, with the tannery valued at approximately $5 million [29] Question: What are the expectations for gross margins post-restructuring? - The goal is to improve gross margins by addressing operational efficiencies and increasing sales [30][33] Question: What is the internal goal for annual run rate in commercial revenue? - The company is in a startup phase for commercial revenue, with expectations for growth as more projects are developed [36] Question: Any updates on the permanent CEO search? - The search is ongoing, with candidates being evaluated for their experience in managing high-end brands and retail operations [40][41] Question: How are current order levels compared to the last quarter? - Management indicated that the situation remains challenging, and stakeholders are encouraged to review the press release for detailed insights [42]

Core Insights - The Lovesac Company has appointed Wan Ling Martello to its Board of Directors, effective November 20, 2025, enhancing its leadership team with her extensive experience in consumer and retail sectors [1][2]. Company Overview - The Lovesac Company, based in Stamford, Connecticut, is a technology-driven furniture brand known for its modular couches called Sactionals and other innovative products designed to evolve with customers' lives [5]. Leadership Experience - Wan Ling Martello has a strong background in driving transformational growth at major consumer and retail companies, including roles as global CFO at Nestlé and senior executive at Walmart, focusing on digital transformation and consumer engagement [2][3]. Strategic Focus - Martello's expertise in data-driven resource allocation and digital transformation aligns with Lovesac's mission as a technology-driven furniture company, which is crucial for navigating its next growth phase [2][3]. Current Roles - In addition to her new role at Lovesac, Martello is currently on the board of the Alibaba Group, further showcasing her extensive industry connections and experience [4].

Core Viewpoint - Lazy Boy's shares surged by 21% following an earnings report that exceeded estimates for both revenue and earnings, indicating positive market sentiment towards the company's performance and strategic direction [2][3][6]. Financial Performance - The company reported adjusted earnings of 71 cents per share, surpassing the estimate of 54 cents by 17 cents, although this figure remained flat compared to the same quarter last year [3][4]. - Topline sales for the interlink business reached $522 million, slightly above the estimated $517 million, reflecting a less than 1% increase [4][5]. - Guidance for the next quarter was raised to a range of $525 million to $545 million, suggesting a projected growth of 1% to 4% in topline sales [5]. Strategic Moves - Lazy Boy is focusing on upscale market positioning by expanding its retail footprint through acquisitions of smaller retailers and opening new galleries [2][3]. - The company is exiting some domestic upholstery businesses and closing a UK manufacturing plant to raise cash, which will be used to pay an additional dividend, marking the fifth consecutive quarter of dividends [5][6]. Market Trends - The company is experiencing challenges with net income margins, which are currently around 3% to 4%, but is optimistic about improving operating metrics with an expected increase in EBITDA to over 7.1% of sales [8][9]. - The shift towards higher price point products is seen as a strategy to attract a more affluent customer base, while potentially sidelining middle-income buyers [16][17].

Financial Data and Key Metrics Changes - Total delivered sales for the second quarter were $522 million, slightly up from the prior year [4][19] - GAAP operating margin was 6.9%, and adjusted operating margin was 7.1% [5][20] - Operating cash flow for the quarter was $50 million, tripling last year's comparable period [5][24] - Diluted earnings per share totaled $0.70 on a GAAP basis, and adjusted diluted EPS was $0.71, flat versus last year's comparable period [20] Business Line Data and Key Metrics Changes - Retail segment delivered sales increased slightly to $222 million, with adjusted operating margin decreasing to 10.7% from 12.6% [21] - Wholesale segment delivered sales increased 2% to $369 million, with adjusted operating margin improving to 8.1% from 6.8% [22] - Joybird's delivered sales were $35 million, down 10%, with an increased operating loss compared to the prior year [22] Market Data and Key Metrics Changes - Written same-store sales decreased 2% for the quarter but showed sequential improvement over the last two quarters [7] - Joybird's total written sales increased by 1% compared to the previous year, indicating improvement in retail store performance [7] Company Strategy and Development Direction - The company is focusing on its core vertically integrated North American upholstery business and has announced the exit of non-core businesses [8][16] - A significant acquisition of a 15-store network in the Southeast U.S. is expected to add approximately $80 million in annual retail sales [9] - The company aims to expand its store network to over 400 stores, with a focus on company-owned locations [11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer trends remain challenging, but they are agile in their execution [7][17] - The company expects fiscal third-quarter sales to be in the range of $525-$545 million, reflecting a growth of 1-4% year over year [27] - Management expressed confidence in navigating the current environment while positioning for long-term growth [17][30] Other Important Information - The company announced a 10% dividend increase, marking the fifth consecutive year of double-digit increases [5][25] - The distribution and home delivery transformation project is expected to reduce the distribution footprint significantly and improve margins [15][28] Q&A Session Summary Question: Differences in geographic sales dispersion - Management noted no dramatic differences, but Canada remains more challenged due to trade tariffs [33] Question: Extent of pricing actions and unit volumes - Management indicated nominal pricing actions were taken to offset trade policy impacts, with flat volume year over year in the North America wholesale business [35][36] Question: Friction costs related to portfolio and supply chain optimization - Management explained that friction costs are associated with the distribution transformation project and are expected to improve efficiency in the long term [37][38] Question: Expansion into other wholesale partners - Management emphasized the importance of strategic partnerships that align with their brand and consumer experience [40] Question: Impact of the acquisition and non-core business exits - Management confirmed that the acquisition would add $40 million in net sales, while exiting non-core businesses would result in a $70 million decrease in sales [47][48] Question: Inventory management and efficiency gains - Management attributed the decrease in inventory to improved supply chain management and efficiency [51] Question: Integration of the 15-store acquisition and future growth - Management plans to continue expanding the store network and investing in remodels to enhance brand representation [55][56] Question: Case goods offerings and partnerships - Management confirmed the importance of case goods in enhancing the upholstery experience while focusing on efficient sourcing [60]

Financial Data and Key Metrics Changes - Total delivered sales for the second quarter were $522 million, slightly up from the prior year [4][19] - GAAP operating margin was 6.9%, and adjusted operating margin was 7.1% [5][20] - Operating cash flow for the quarter was $50 million, triple the amount from the previous year [5][24] - Diluted earnings per share were $0.70 on a GAAP basis, and adjusted diluted EPS was $0.71, flat compared to last year [20] Business Line Data and Key Metrics Changes - Retail segment delivered sales increased slightly to $222 million, with adjusted operating margin at 10.7%, down from 12.6% due to fixed cost deleverage [21] - Wholesale segment delivered sales grew 2% to $369 million, with adjusted operating margin improving to 8.1% from 6.8% [22] - Joybird's delivered sales were $35 million, down 10% year-over-year, with an increased operating loss [22] Market Data and Key Metrics Changes - Written same-store sales decreased 2% for the quarter but showed sequential improvement over the last two quarters [7] - Joybird's total written sales increased by 1% compared to the previous year, indicating improvement in retail store performance [7] Company Strategy and Development Direction - The company is focusing on its core vertically integrated North American upholstery business and has announced the exit of non-core businesses [8][16] - A significant acquisition of a 15-store network in the Southeast U.S. is expected to add approximately $80 million in annual retail sales [9] - The company aims to expand its store network to over 400 stores, with a focus on company-owned locations [11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer trends remain challenging, but they are agile in their execution [7][17] - The company expects fiscal third-quarter sales to range from $525 million to $545 million, reflecting a growth of 1-4% year-over-year [27] - Management expressed confidence in navigating the current environment while positioning for long-term growth [17][30] Other Important Information - The company announced a 10% dividend increase, marking the fifth consecutive year of double-digit increases [5][25] - The distribution and home delivery transformation project is expected to improve efficiency and reduce costs in the long term [15][28] Q&A Session Summary Question: Differences in geographic sales dispersion - Management noted no dramatic differences, but Canada remains more challenged due to trade tariffs [33] Question: Pricing actions and unit volumes - Management indicated nominal pricing actions were taken to offset tariff impacts, with flat volume year-over-year in the North America wholesale business [35][36] Question: Friction costs related to portfolio and supply chain optimization - Management explained that friction costs are expected in the short term due to the distribution transformation project, with improvements anticipated in the back half of the fiscal year [37][38] Question: Expansion into wholesale partners - Management emphasized the importance of strategic partnerships and compatibility with existing retail growth [40] Question: Impact of the acquisition and non-core business exits - Management confirmed that the acquisition would add $40 million in net sales, while exiting non-core businesses would result in a $70 million sales decrease [47][48] Question: Inventory management - Management attributed reduced inventories to improved supply chain efficiency and tighter capital management [51] Question: Integration of the acquisition and future growth - Management plans to continue expanding the store network and investing in remodels to enhance brand representation [55][56] Question: Case goods offerings post-exit of non-core businesses - Management confirmed the importance of case goods in enhancing the upholstery experience while focusing on efficient partnerships for sourcing [60]

Financial Data and Key Metrics Changes - Total delivered sales for the second quarter were $522 million, a slight increase from the prior year [4] - GAAP operating margin was 6.9%, while adjusted operating margin was 7.1% [5][17] - Strong operating cash flow of $50 million for the quarter, tripling last year's comparable period [5][22] - Diluted earnings per share totaled $0.70 on a GAAP basis, and adjusted diluted EPS was $0.71, flat compared to last year [18] Business Line Data and Key Metrics Changes - Retail segment delivered sales increased slightly to $222 million, with adjusted operating margin decreasing to 10.7% from 12.6% due to fixed cost deleverage [18] - Wholesale segment delivered sales grew 2% to $369 million, with adjusted operating margin improving to 8.1% from 6.8% [19] - Joybird's delivered sales were $35 million, down 10%, with an increased operating loss compared to the prior year [19][20] Market Data and Key Metrics Changes - Written same-store sales decreased 2% for the quarter but showed sequential improvement over the last two quarters [6] - Total written sales for Joybird increased by 1% compared to the previous year, indicating improvement in retail store performance [6] Company Strategy and Development Direction - The company is focusing on its core vertically integrated North American upholstery business and has announced the exit of non-core businesses [7][14] - A significant acquisition of a 15-store network in the Southeast U.S. is expected to add approximately $80 million in annual retail sales [8] - The company aims to expand its store network to over 400 stores, with a focus on company-owned locations [10][43] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer trends remain challenging, but they are committed to navigating the current environment while positioning for long-term growth [6][16] - The company expects fiscal third-quarter sales to be in the range of $525-$545 million, reflecting a growth of 1-4% year-over-year [25] - Management expressed confidence in the company's financial strength and long-term growth prospects, highlighted by a 10% dividend increase [23][24] Other Important Information - The company is undergoing a multi-year project to transform its distribution network, which is expected to improve efficiency and reduce costs [12][13] - The company has a strong balance sheet with $339 million in cash and no externally funded debt [22] Q&A Session Summary Question: Geographic sales dispersion and market consistency - Management noted no significant differences in geographic sales dispersion, with Canada facing more challenges due to trade tariffs [30] Question: Pricing actions and unit volumes - Management confirmed nominal pricing actions were taken to offset trade policy changes, with volume remaining flat year-over-year in the North America wholesale business [31][32] Question: Friction costs related to portfolio and supply chain optimization - Management explained that friction costs are associated with the ongoing distribution transformation project, which is expected to yield long-term efficiency gains [33] Question: Expansion into new wholesale partners - Management emphasized the importance of strategic partnerships that align with the brand and enhance consumer reach, noting recent expansions with Living Spaces and Costco [35] Question: Impact of non-core business exits on sales - Management confirmed that the exit of non-core businesses would result in a net sales decrease of approximately $30 million, but with expected margin improvements [38][39] Question: Inventory management and efficiency gains - Management attributed the decrease in inventory to improved supply chain management and efficiency [41] Question: Integration of the 15-store acquisition - Management expressed satisfaction with the integration process and plans for continued expansion of company-owned stores [42][45] Question: Case goods offerings and partnerships - Management confirmed the importance of case goods in enhancing the upholstery experience while recognizing the need for efficient sourcing strategies [48]

Earnings Expectations - Nvidia Corp. is expected to report quarterly earnings of $1.25 per share with revenue of $54.84 billion [2] - Target Corp. is projected to post quarterly earnings of $1.72 per share on revenue of $25.34 billion [2] - La-Z-Boy Inc. reported better-than-expected earnings for the second quarter and anticipates third-quarter sales between $525 million to $545 million [2] - TJX Companies Inc. is projected to report quarterly earnings of $1.22 per share on revenue of $14.85 billion [2] - Lowe's Companies Inc. is expected to post quarterly earnings of $2.97 per share on revenue of $20.84 billion [2] Stock Performance - Nvidia shares fell 2.8% to close at $181.36 [2] - Target shares rose 0.1% to close at $88.53 [2] - La-Z-Boy shares gained 0.9% to close at $29.59 [2] - TJX shares gained 0.3% to close at $145.58 [2] - Lowe's shares fell 2.4% to close at $219.57 [2]