La-Z-Boy(US:LZB)2025-06-18 13:30Financial Data and Key Metrics Changes - Consolidated delivered sales for Q4 2025 were $571 million, growing 3% year-over-year [6][7] - For the fiscal year, consolidated delivered sales reached $2.1 billion, also growing 3% compared to the previous year [7][27] - Operating cash flow for the year was $187 million, up 18% from the prior year [7][30] - The company maintained a strong balance sheet with $328 million in cash and no external debt [7][30] - Adjusted diluted EPS for the year was $2.92, down from $2.98 in fiscal 2024 [27][29] Business Segment Data and Key Metrics Changes - Retail segment sales for Q4 increased 8% to $247 million, driven by new stores and acquisitions [24] - Wholesale segment sales grew 2% to $324 million in Q4, primarily from the North American business [25] - Joybird's delivered sales were $36 million, down 2% year-over-year, with a positive adjusted operating margin [26] Market Data and Key Metrics Changes - Written same-store sales for the retail segment decreased 5% year-over-year, influenced by high mortgage rates and economic volatility [13] - Industry data showed mixed results, with some peers reporting flat to mid-teen declines in same-store sales [13] - Joybird's written sales trends decreased 21% in the quarter, with stronger performance in physical stores compared to online [14][15] Company Strategy and Development Direction - The company is focused on its Century Vision strategy, aiming for double-digit growth and operating margins [16][22] - Plans to expand the La-Z-Boy Furniture Galleries network to over 400 stores, with a focus on company-owned locations [17][18] - The company is investing in its supply chain and distribution network to enhance efficiency and service levels [10][11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model to outperform peers despite ongoing economic challenges [9][22] - The company anticipates continued macroeconomic volatility but expects to benefit from a rebound in the housing market in the long term [22][35] - Management highlighted the importance of agility in navigating external uncertainties and maintaining consumer engagement [12][22] Other Important Information - The company was recognized in Newsweek's list of America's most loved brands and most trustworthy companies for 2025 [35] - The company plans to open approximately 15 new company-owned and independent stores in fiscal 2026 [32][33] Q&A Session Summary Question: Can you provide details on the drivers for margin expansion in the wholesale segment? - Management indicated that half of the margin improvement is within their control through distribution redesign, while the other half depends on a healthy industry and housing market [40][42] Question: Why is the distribution redesign project being initiated now? - The timing is due to the increased scale of the business and the opportunity for efficiency improvements [44][45] Question: What has been observed in written orders recently? - Management noted that Memorial Day showed a solid start, contrasting with a challenging February [46][47] Question: What were the reasons for sales outperformance compared to guidance? - The outperformance was attributed to broad-based execution despite macroeconomic challenges [52][54] Question: Can you elaborate on the tariff expenses and pricing actions? - Management discussed nominal pricing actions taken to mitigate tariff impacts and emphasized the importance of consumer response [55][57] Question: What is the long-term outlook for Joybird stores? - Management remains optimistic about Joybird's growth potential and plans to open three to four new stores while optimizing the brand [59][62] Question: How does La-Z-Boy's pricing strategy compare to competitors? - Management believes La-Z-Boy is well-positioned due to its U.S.-based manufacturing and ability to offer personalized products at competitive prices [66][69]