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La-z-boy Incorporated
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
Business
Jun 17 2025
28 min read

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

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Fiscal 2025 Fourth Quarter Highlights:

  • Consolidated delivered sales of $571 million

    • Up 3% versus prior year

  • Retail segment delivered sales increased 8%

    • Company-owned La-Z-Boy Furniture Galleries® network grew by a total of six stores; 203 company-owned store base now represents 55% of total network

  • Wholesale segment delivered sales increased 2%

  • GAAP operating margin of 5.2%; adjusted(1) operating margin of 9.4%, flat versus the year ago period

  • GAAP diluted EPS of $0.36 and adjusted(1) diluted EPS of $0.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items

  • Delivered sales exceeded high end of guidance range and adjusted(1) operating margin at high end of guidance range

  • Generated $62 million in operating cash flow for the quarter, up 17% versus prior year

Fiscal 2025 Highlights:

  • Consolidated delivered sales of $2.1 billion

    • Up 3% versus prior year

  • Retail segment delivered sales increased 5%

    • Added 11 newly opened stores, one of the largest yearly expansions in company history, and acquired seven independent La-Z-Boy Furniture Galleries® stores

  • Wholesale segment delivered sales increased 2%

  • Joybird delivered sales increased 5%

  • GAAP operating margin of 6.4%; adjusted(1) operating margin of 7.6%, down 20 basis points versus a year ago

  • GAAP diluted EPS of $2.35 and adjusted(1) diluted EPS of $2.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items

  • Generated $187 million in operating cash flow for the year, up 18% versus prior year

  • Returned $113 million to shareholders through share repurchases and dividends

    • Increased quarterly dividend by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase

MONROE, Mich., June 17, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong fourth quarter results for the period ended April 26, 2025. For the quarter, sales totaled $571 million, growing 3% against the prior year comparable period. Operating margin was 5.2% for the quarter on a GAAP basis and 9.4% on an adjusted(1) basis. Diluted earnings per share totaled $0.36 on a GAAP basis and $0.92 on an adjusted(1) basis, both of which include a $0.10 impact from unfavorable foreign tax discrete items. The company returned $113 million to shareholders for the year, up over 30% versus the prior year.

Fourth quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) grew 3% versus a year ago and written same-store sales (which exclude the impact of newly opened stores and newly acquired stores) were down 5% versus a year ago. Continued challenges in the housing market with stubbornly high mortgage rates and increased volatility in the global economy negatively influenced consumer sentiment and had an adverse impact on industry trends. Industry data for the quarter was mixed with public company peers noting same-store sales of relatively flat to declines in the mid-teen range, while the broader industry data as reported by the U.S. Census Bureau indicated an increase in the mid-single digits.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our fourth quarter results reflect the ongoing strengthening of our brand and operations under our Century Vision strategy. We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty. We are controlling what we can control with distinct strategies and initiatives across each of our businesses. In Retail, we continue to grow our direct-to-consumer business, own the entire end-to-end consumer experience, and develop more value-added consumer insights. Through opening net new stores and also acquiring existing independent La-Z-Boy Furniture Galleries®, we reached a new milestone in the quarter, growing our company-owned store footprint to over 200 stores, nearly doubling our store count over the last 10 years, and now owning 55% of the total network. In Wholesale, we continue to expand our brand reach with compatible strategic partners to serve more consumers. Additionally, we are successfully driving scale and efficiencies in our supply chain. This is highlighted by our core North America La-Z-Boy wholesale business achieving sales growth and margin expansion for four consecutive quarters during fiscal 2025, and continuing to strengthen as we initiate our multi-year distribution and delivery redesign.”

Whittington added, “Even as we expect global economic uncertainty to continue challenging consumers in the near term, we are confident in the strength of our business model to outperform our peers and deliver strong financial performance. La-Z-Boy is an iconic brand in a highly fragmented market. We have successfully navigated challenging times throughout our 98-year history by delivering comfort and quality to our consumers. A strong balance sheet combined with an agile supply chain provides us a position of strength in the industry. We will continue to execute our playbook to mitigate an ever changing environment and drive long-term profitable growth and returns for all stakeholders.”

First Quarter Outlook:
Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “We delivered growth and strong financial results in what was another challenging year for the industry. We continue to control what we can control and are executing against our Century Vision strategy, which will enable growth through our centennial and beyond. I am pleased with our progress, and our ability to deliver results at or above the high end of our sales and margin expectations for the fourth quarter, even in light of considerable volatility during the quarter. Given higher levels of uncertainty in the broader economic climate, we expect the industry outlook to continue to be volatile and we are planning prudently to navigate the year ahead. We expect to continue to outperform the industry, driven by growth in our company-owned Retail segment and core North America La-Z-Boy wholesale business. Assuming no significant changes in external factors, we expect fiscal first quarter sales to be in the range of $490-$510 million, reflecting modest growth in a challenged consumer environment. We expect adjusted operating margin(2) to be in the range of 5.5-7.0%, including the impact of transitory pressure from our UK and Joybird businesses, as well as investment in our distribution network and home delivery redesign project. Also, as a reminder, our first quarter is generally the lowest sales and margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown.”

Key Results:

(Unaudited, amounts in thousands, except per share data and percentages)

 

Quarter Ended

 

 

 

Year Ended

 

 

 

4/26/2025

 

4/27/2024

 

Change

 

4/26/2025

 

4/27/2024

 

Change

Sales

 

$

570,871

 

 

$

553,535

 

 

3%

 

 

$

2,109,207

 

 

$

2,047,027

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income

 

 

29,527

 

 

 

50,097

 

 

(41)%

 

 

 

135,837

 

 

 

150,796

 

 

(10)%

 

Adjusted operating income

 

 

53,611

 

 

 

52,114

 

 

3%

 

 

 

160,826

 

 

 

159,398

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

 

5.2%

 

 

 

9.1%

 

 

(390) bps

 

 

 

6.4%

 

 

 

7.4%

 

 

(100) bps

 

Adjusted operating margin

 

 

9.4%

 

 

 

9.4%

 

 

0 bps

 

 

 

7.6%

 

 

 

7.8%

 

 

(20) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to La-Z-Boy Incorporated

 

 

14,931

 

 

 

39,308

 

 

(62)%

 

 

 

99,556

 

 

 

122,626

 

 

(19)%

 

Adjusted net income attributable to La-Z-Boy Incorporated

 

 

38,392

 

 

 

40,811

 

 

(6)%

 

 

 

123,745

 

 

 

129,131

 

 

(4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares

 

 

41,942

 

 

 

42,974

 

 

 

 

 

42,345

 

 

 

43,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

0.36

 

 

$

0.91

 

 

(60)%

 

 

$

2.35

 

 

$

2.83

 

 

(17)%

 

Adjusted diluted earnings per share

 

$

0.92

 

 

$

0.95

 

 

(3)%

 

 

$

2.92

 

 

$

2.98

 

 

(2)%

 

 

Liquidity Measures:

 

 

Year Ended

 

 

 

Year Ended

(Unaudited, amounts in thousands)

 

4/26/2025

 

4/27/2024

 

(Unaudited, amounts in thousands)

 

4/26/2025

 

4/27/2024

Free Cash Flow

 

 

 

 

 

Cash Returns to Shareholders

 

 

 

 

Operating cash flow

 

$

187,271

 

 

$

158,127

 

 

Share repurchases

 

$

77,930

 

$

52,773

Capital expenditures

 

 

(74,280

)

 

 

(53,551

)

 

Dividends

 

 

34,955

 

 

32,665

Free cash flow

 

$

112,991

 

 

$

104,576

 

 

Cash returns to shareholders

 

$

112,885

 

$

85,438


(Unaudited, amounts in thousands)

 

4/26/2025

 

4/27/2024

Cash and cash equivalents

 

$

328,449

 

$

341,098

 

Fiscal 2025 Fourth Quarter Results versus Fiscal 2024 Fourth Quarter:

  • Consolidated sales in the fourth quarter of fiscal 2025 increased 3% to $571 million versus last year, primarily driven by acquisitions and new stores in the Retail segment, and continued momentum in our core North America La-Z-Boy wholesale business

  • Consolidated GAAP operating margin was 5.2% versus 9.1%

    • Consolidated adjusted(1) operating margin was flat at 9.4% versus the year ago period, as lower input costs (reduced commodity prices and improved sourcing) and leverage on marketing investments were offset by the impact of a significant customer transition in our international wholesale business as well as acceleration of tariff expenses in the quarter

  • GAAP diluted EPS was $0.36 versus $0.91, and adjusted(1) diluted EPS totaled $0.92 versus $0.95 last year in the comparable period. GAAP and adjusted(1) diluted EPS for fiscal 2025 both include a $0.10 impact from unfavorable foreign tax discrete items

Retail Segment:

  • Sales:

    • Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 3% compared to the year ago period driven primarily by new and acquired stores

      • Written same-store sales decreased 5%, as continued weakness in industry traffic was partially offset by higher average ticket and design sales

    • Delivered sales increased 8% to $247 million versus last year, primarily due to growth from acquired and new stores and positive delivered same-store sales growth

  • Operating Margin:

    • GAAP operating margin and GAAP operating income were 13.1% and $32 million, versus 14.1% and $32 million in the prior period, respectively

      • Adjusted(1) operating margin and adjusted(1) operating income were 13.1% and $32 million, down 110 basis points, and flat, respectively, due to investment in new stores

Wholesale Segment:

  • Sales:

    • Sales increased 2% to $402 million, driven by growth in our core North America La-Z-Boy wholesale business partially offset by the continued impact of a significant customer transition in our international wholesale business

  • Operating Margin:

    • GAAP operating margin decreased to 2.5% versus 8.1%

      • Adjusted(1) operating margin was 8.5%, flat versus the year ago as gross margin and SG&A as a percent of sales were largely unchanged. Continued margin expansion in our core North America La-Z-Boy wholesale business was offset by the margin impact of a significant customer transition in the international wholesale business as well as incremental tariff expenses in the quarter

Corporate & Other:

  • Joybird written sales decreased 21% as recent economic and industry trends disproportionately impacted the Joybird online consumer

  • Delivered sales decreased 2% to $36 million as positive growth within existing stores was offset by declines in the online business

  • Joybird adjusted(1) operating margin was positive in the fourth quarter, relatively flat versus prior year

Balance Sheet and Cash Flow, Fiscal 2025:

  • Ended the quarter with $328 million in cash(3) and no external debt

  • Generated $187 million in cash from operating activities (up 18% from the prior year) including $62 million in the fourth quarter (up 17% from the prior year comparable period), versus $158 million in Fiscal 2024 and $53 million in last year's fourth quarter

  • Invested $74 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels)

  • Returned approximately $113 million to shareholders, including $78 million in share repurchases and $35 million in dividends, which was raised by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase

Conference Call:
La-Z-Boy will hold a conference call with the investment community on Wednesday, June 18, 2025, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 546047.

The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at https://lazboy.gcs-web.com/. A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 52510. The webcast replay will be available for one year.

Investor Relations Contact:
Mark Becks, CFA, (734) 457-9538
mark.becks@la-z-boy.com

Media Contact:
Cara Klaer, (734) 598-0652
cara.klaer@la-z-boy.com

About La-Z-Boy:
La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers.

The Retail segment consists of over 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with La-Z-Boy.com, serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: https://www.la-z-boy.com/.

Notes:
(1)Beginning in FY2025 Q4, the company renamed all of its Non-GAAP financial measures to adjusted financial measures; for example, Non-GAAP diluted EPS has been renamed to adjusted diluted EPS. The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged. Please refer to the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” and “Reconciliation of GAAP to Adjusted Financial Measures: Segment Information” for detailed information.

Adjusted amounts for the fourth quarter of fiscal 2025 exclude:

  • a $20.6 million pre-tax, or $0.49 per diluted share, charge related to the goodwill impairment in our United Kingdom ("UK") wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business.

  • a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions

  • purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating income

Adjusted amounts for the fourth quarter of fiscal 2024 exclude:

  • a $1.7 million pre-tax, or less than $0.03 per diluted share, charge related to our Mexico supply chain optimization actions

  • purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or $0.01 per diluted share, all included in operating income

Adjusted amounts for full fiscal 2025 exclude:

  • a $20.6 million pre-tax, or $0.48 per diluted share, charge related to the goodwill impairment in our UK wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business.

  • a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions

  • purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax, or $0.02 per diluted share, all included in operating income

Adjusted amounts for full fiscal 2024 exclude:

  • a $7.5 million pre-tax, or $0.13 per diluted share, charge related to our Mexico supply chain optimization actions

  • purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax. or $0.02 per share, with $1.1 million included in operating income and $0.1 million included in interest expense

(2)This reference to adjusted operating margin for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts.

Please refer to the accompanying “Reconciliation of GAAP to adjusted Financial Measures” and “Reconciliation of GAAP to adjusted Financial Measures: Segment Information” for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

(3)Cash includes cash and cash equivalents.

Cautionary Note Regarding Forward-Looking Statements:
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.

The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

Adjusted Financial Measures:
In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges, goodwill impairment charges, and purchase accounting charges. The supply chain optimization charges in fiscal 2025 include asset impairment costs and severance costs related to our United Kingdom wholesale businesses. The supply chain optimization charges in fiscal 2024 include asset impairment costs, accelerated depreciation expense, lease termination gains, severance costs, and employee relocation costs related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The purchase accounting charges include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, and fair value adjustments of future cash payments recorded as interest expense. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, supply chain optimization charges are dependent on the timing, size, number and nature of the operations being closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented.



LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

 

 

 

Quarter Ended

 

Year Ended

(Unaudited, amounts in thousands, except per share data)

 

4/26/2025

 

4/27/2024

 

4/26/2025

 

4/27/2024

Sales

 

$

570,871

 

 

$

553,535

 

 

$

2,109,207

 

 

$

2,047,027

 

Cost of sales

 

 

319,809

 

 

 

313,452

 

 

 

1,182,789

 

 

 

1,165,357

 

Gross profit

 

 

251,062

 

 

 

240,083

 

 

 

926,418

 

 

 

881,670

 

Selling, general and administrative expense

 

 

200,954

 

 

 

189,986

 

 

 

770,000

 

 

 

730,874

 

Goodwill impairment

 

 

20,581

 

 

 

 

 

 

20,581

 

 

 

 

Operating income

 

 

29,527

 

 

 

50,097

 

 

 

135,837

 

 

 

150,796

 

Interest expense

 

 

(134

)

 

 

(126

)

 

 

(545

)

 

 

(455

)

Interest income

 

 

3,258

 

 

 

4,260

 

 

 

14,877

 

 

 

15,482

 

Other income (expense), net

 

 

(635

)

 

 

(92

)

 

 

(3,035

)

 

 

(71

)

Income before income taxes

 

 

32,016

 

 

 

54,139

 

 

 

147,134

 

 

 

165,752

 

Income tax expense

 

 

16,666

 

 

 

13,807

 

 

 

46,182

 

 

 

41,116

 

Net income

 

 

15,350

 

 

 

40,332

 

 

 

100,952

 

 

 

124,636

 

Net (income) loss attributable to noncontrolling interests

 

 

(419

)

 

 

(1,024

)

 

 

(1,396

)

 

 

(2,010

)

Net income attributable to La-Z-Boy Incorporated

 

$

14,931

 

 

$

39,308

 

 

$

99,556

 

 

$

122,626

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 

41,208

 

 

 

42,499

 

 

 

41,601

 

 

 

42,878

 

Basic net income attributable to La-Z-Boy Incorporated per share

 

$

0.36

 

 

$

0.92

 

 

$

2.39

 

 

$

2.86

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares

 

 

41,942

 

 

 

42,974

 

 

 

42,345

 

 

 

43,280

 

Diluted net income attributable to La-Z-Boy Incorporated per share

 

$

0.36

 

 

$

0.91

 

 

$

2.35

 

 

$

2.83

 

 


LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

 

(Unaudited, amounts in thousands, except par value)

 

4/26/2025

 

4/27/2024

Current assets

 

 

 

 

Cash and equivalents

 

$

328,449

 

 

$

341,098

 

Receivables, net of allowance of $5,042 at 4/26/2025 and $5,076 at 4/27/2024

 

 

139,533

 

 

 

139,213

 

Inventories, net

 

 

255,285

 

 

 

263,237

 

Other current assets

 

 

82,421

 

 

 

93,260

 

Total current assets

 

 

805,688

 

 

 

836,808

 

Property, plant and equipment, net

 

 

339,212

 

 

 

298,224

 

Goodwill

 

 

205,590

 

 

 

214,453

 

Other intangible assets, net

 

 

51,161

 

 

 

47,251

 

Deferred income taxes – long-term

 

 

7,349

 

 

 

10,283

 

Right of use lease asset

 

 

452,848

 

 

 

446,466

 

Other long-term assets, net

 

 

60,314

 

 

 

59,957

 

Total assets

 

$

1,922,162

 

 

$

1,913,442

 

 

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

95,984

 

 

$

96,486

 

Lease liabilities, short-term

 

 

80,592

 

 

 

77,027

 

Accrued expenses and other current liabilities

 

 

244,215

 

 

 

263,768

 

Total current liabilities

 

 

420,791

 

 

 

437,281

 

Lease liability, long-term

 

 

410,265

 

 

 

404,724

 

Other long-term liabilities

 

 

59,130

 

 

 

58,077

 

Shareholders' Equity

 

 

 

 

Preferred shares – 5,000 authorized; none issued

 

 

 

 

 

 

Common shares, $1.00 par value – 150,000 authorized; 41,164 outstanding at 4/26/2025 and 42,440 outstanding at 4/27/2024

 

 

41,164

 

 

 

42,440

 

Capital in excess of par value

 

 

385,601

 

 

 

368,485

 

Retained earnings

 

 

597,432

 

 

 

598,009

 

Accumulated other comprehensive loss

 

 

(3,574

)

 

 

(5,870

)

Total La-Z-Boy Incorporated shareholders' equity

 

 

1,020,623

 

 

 

1,003,064

 

Noncontrolling interests

 

 

11,353

 

 

 

10,296

 

Total equity

 

 

1,031,976

 

 

 

1,013,360

 

Total liabilities and equity

 

$

1,922,162

 

 

$

1,913,442

 

 


LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

Year Ended

(Unaudited, amounts in thousands)

 

4/26/2025

 

4/27/2024

Cash flows from operating activities

 

 

 

 

Net income

 

$

100,952

 

 

$

124,636

 

Adjustments to reconcile net income to cash provided by operating activities

 

 

 

 

(Gain)/loss on disposal and impairment of assets

 

 

1,998

 

 

 

1,101

 

(Gain)/loss on sale of investments

 

 

(235

)

 

 

(1,199

)

Provision for doubtful accounts

 

 

851

 

 

 

511

 

Depreciation and amortization

 

 

46,667

 

 

 

48,552

 

Amortization of right-of-use lease assets

 

 

76,964

 

 

 

76,133

 

Lease impairment/(settlement)

 

 

 

 

 

(1,175

)

Equity-based compensation expense

 

 

17,400

 

 

 

14,426

 

Goodwill impairment

 

 

20,581

 

 

 

 

Change in deferred taxes

 

 

5,116

 

 

 

(3,268

)

Change in receivables

 

 

(1,906

)

 

 

(16,811

)

Change in inventories

 

 

12,792

 

 

 

19,877

 

Change in other assets

 

 

8,701

 

 

 

10,303

 

Change in payables

 

 

(2,066

)

 

 

(8,606

)

Change in lease liabilities

 

 

(78,609

)

 

 

(76,766

)

Change in other liabilities

 

 

(21,935

)

 

 

(29,587

)

Net cash provided by operating activities

 

 

187,271

 

 

 

158,127

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Proceeds from disposals of assets

 

 

412

 

 

 

4,972

 

Capital expenditures

 

 

(74,280

)

 

 

(53,551

)

Purchases of investments

 

 

(6,990

)

 

 

(18,351

)

Proceeds from sales of investments

 

 

11,994

 

 

 

24,816

 

Acquisitions

 

 

(29,525

)

 

 

(39,440

)

Net cash used for investing activities

 

 

(98,389

)

 

 

(81,554

)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Payments on finance lease liabilities

 

 

(663

)

 

 

(489

)

Holdback payments for acquisitions

 

 

 

 

 

(5,000

)

Stock issued for stock and employee benefit plans, net of shares withheld for taxes

 

 

12,350

 

 

 

10,872

 

Repurchases of common stock

 

 

(77,930

)

 

 

(52,773

)

Dividends paid to shareholders

 

 

(34,955

)

 

 

(32,665

)

Dividends paid to minority interest joint venture partners (1)

 

 

(1,414

)

 

 

(1,172

)

Net cash used for financing activities

 

 

(102,612

)

 

 

(81,227

)

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

 

1,081

 

 

 

(926

)

Change in cash, cash equivalents and restricted cash

 

 

(12,649

)

 

 

(5,580

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

341,098

 

 

 

346,678

 

Cash, cash equivalents and restricted cash at end of period

 

$

328,449

 

 

$

341,098

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

Capital expenditures included in payables

 

$

7,234

 

 

$

5,952

 

 


(1

)

Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

 

 

 


LA-Z-BOY INCORPORATED
SEGMENT INFORMATION

 

 

 

Quarter Ended

 

Year Ended

(Unaudited, amounts in thousands)

 

4/26/2025

 

4/27/2024

 

4/26/2025

 

4/27/2024

Sales

 

 

 

 

 

 

 

 

Wholesale segment:

 

 

 

 

 

 

 

 

Sales to external customers

 

$

286,883

 

 

$

287,900

 

 

$

1,056,914

 

 

$

1,048,431

 

Intersegment sales

 

 

115,141

 

 

 

104,561

 

 

 

422,905

 

 

 

398,847

 

Wholesale segment sales

 

 

402,024

 

 

 

392,461

 

 

 

1,479,819

 

 

 

1,447,278

 

 

 

 

 

 

 

 

 

 

Retail segment sales

 

 

246,769

 

 

 

227,878

 

 

 

898,370

 

 

 

855,126

 

 

 

 

 

 

 

 

 

 

Corporate and Other:

 

 

 

 

 

 

 

 

Sales to external customers

 

 

37,219

 

 

 

37,757

 

 

 

153,923

 

 

 

143,470

 

Intersegment sales

 

 

1,799

 

 

 

1,587

 

 

 

6,552

 

 

 

10,299

 

Corporate and Other sales

 

 

39,018

 

 

 

39,344

 

 

 

160,475

 

 

 

153,769

 

 

 

 

 

 

 

 

 

 

Eliminations

 

 

(116,940

)

 

 

(106,148

)

 

 

(429,457

)

 

 

(409,146

)

Consolidated sales

 

$

570,871

 

 

$

553,535

 

 

$

2,109,207

 

 

$

2,047,027

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

 

Wholesale segment

 

$

10,120

 

 

$

31,709

 

 

$

82,213

 

 

$

99,373

 

Retail segment

 

 

32,414

 

 

 

32,170

 

 

 

105,417

 

 

 

111,682

 

Corporate and Other

 

 

(13,007

)

 

 

(13,782

)

 

 

(51,793

)

 

 

(60,259

)

Consolidated operating income

 

$

29,527

 

 

$

50,097

 

 

$

135,837

 

 

$

150,796

 

 


LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIALDATA

 

Fiscal2025

 

Fiscal Quarter Ended

 

(13 weeks)

 

(13 weeks)

 

(13 weeks)

 

(13 weeks)

(Amounts in thousands, except per share data)

 

7/27/2024

 

10/26/2024

 

1/25/2025

 

4/26/2025

Sales

 

$

495,532

 

 

$

521,027

 

 

$

521,777

 

 

$

570,871

 

Cost of sales

 

 

282,189

 

 

 

290,379

 

 

 

290,412

 

 

 

319,809

 

Gross profit

 

 

213,343

 

 

 

230,648

 

 

 

231,365

 

 

 

251,062

 

Selling, general and administrative expense

 

 

180,973

 

 

 

191,876

 

 

 

196,197

 

 

 

200,954

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

20,581

 

Operating income

 

 

32,370

 

 

 

38,772

 

 

 

35,168

 

 

 

29,527

 

Interest expense

 

 

(210

)

 

 

(99

)

 

 

(102

)

 

 

(134

)

Interest income

 

 

4,424

 

 

 

3,730

 

 

 

3,465

 

 

 

3,258

 

Other income (expense), net

 

 

(618

)

 

 

(1,879

)

 

 

97

 

 

 

(635

)

Income before income taxes

 

 

35,966

 

 

 

40,524

 

 

 

38,628

 

 

 

32,016

 

Income tax expense

 

 

9,162

 

 

 

10,671

 

 

 

9,683

 

 

 

16,666

 

Net income

 

 

26,804

 

 

 

29,853

 

 

 

28,945

 

 

 

15,350

 

Net (income) loss attributable to noncontrolling interests

 

 

(645

)

 

 

184

 

 

 

(516

)

 

 

(419

)

Net income attributable to La-Z-Boy Incorporated

 

$

26,159

 

 

$

30,037

 

 

$

28,429

 

 

$

14,931

 

Diluted weighted average common shares

 

 

42,564

 

 

 

42,154

 

 

 

42,103

 

 

 

41,942

 

Diluted net income attributable to La-Z-Boy Incorporated per share

 

$

0.61

 

 

$

0.71

 

 

$

0.68

 

 

$

0.36

 

 


Fiscal2024

 

Fiscal Quarter Ended

 

(13 weeks)

 

(13 weeks)

 

(13 weeks)

 

(13 weeks)

(Amounts in thousands, except per share data)

 

7/29/2023

 

10/28/2023

 

1/27/2024

 

4/27/2024

Sales

 

$

481,651

 

 

$

511,435

 

 

$

500,406

 

 

$

553,535

 

Cost of sales

 

 

275,923

 

 

 

288,830

 

 

 

287,152

 

 

 

313,452

 

Gross profit

 

 

205,728

 

 

 

222,605

 

 

 

213,254

 

 

 

240,083

 

Selling, general and administrative expense

 

 

171,202

 

 

 

188,993

 

 

 

180,693

 

 

 

189,986

 

Operating income

 

 

34,526

 

 

 

33,612

 

 

 

32,561

 

 

 

50,097

 

Interest expense

 

 

(122

)

 

 

(101

)

 

 

(106

)

 

 

(126

)

Interest income

 

 

3,056

 

 

 

4,042

 

 

 

4,124

 

 

 

4,260

 

Other income (expense), net

 

 

556

 

 

 

104

 

 

 

(639

)

 

 

(92

)

Income before income taxes

 

 

38,016

 

 

 

37,657

 

 

 

35,940

 

 

 

54,139

 

Income tax expense

 

 

10,090

 

 

 

9,963

 

 

 

7,256

 

 

 

13,807

 

Net income

 

 

27,926

 

 

 

27,694

 

 

 

28,684

 

 

 

40,332

 

Net income attributable to noncontrolling interests

 

 

(447

)

 

 

(495

)

 

 

(44

)

 

 

(1,024

)

Net income attributable to La-Z-Boy Incorporated

 

$

27,479

 

 

$

27,199

 

 

$

28,640

 

 

$

39,308

 

Diluted weighted average common shares

 

 

43,333

 

 

 

43,401

 

 

 

43,195

 

 

 

42,974

 

Diluted net income attributable to La-Z-Boy Incorporated per share

 

$

0.63

 

 

$

0.63

 

 

$

0.66

 

 

$

0.91

 

 


LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES

 

 

 

Quarter Ended

 

Year Ended

(Amounts in thousands, except per share data)

 

4/26/2025

 

4/27/2024

 

4/26/2025

 

4/27/2024

GAAP gross profit

 

$

251,062

 

 

$

240,083

 

 

$

926,418

 

 

$

881,670

 

Purchase accounting charges (1)

 

 

 

 

 

89

 

 

 

140

 

 

 

89

 

Supply chain optimization charges (2)

 

 

1,123

 

 

 

502

 

 

 

1,123

 

 

 

4,468

 

Adjusted gross profit

 

$

252,185

 

 

$

240,674

 

 

$

927,681

 

 

$

886,227

 

 

 

 

 

 

 

 

 

 

GAAP SG&A

 

$

200,954

 

 

$

189,986

 

 

$

770,000

 

 

$

730,874

 

Purchase accounting charges (3)

 

 

(256

)

 

 

(254

)

 

 

(1,021

)

 

 

(1,016

)

Supply chain optimization charges (4)

 

 

(2,124

)

 

 

(1,172

)

 

 

(2,124

)

 

 

(3,029

)

Adjusted SG&A

 

$

198,574

 

 

$

188,560

 

 

$

766,855

 

 

$

726,829

 

 

 

 

 

 

 

 

 

 

GAAP operating income

 

$

29,527

 

 

$

50,097

 

 

$

135,837

 

 

$

150,796

 

Purchase accounting charges

 

 

256

 

 

 

343

 

 

 

1,161

 

 

 

1,105

 

Supply chain optimization charges

 

 

3,247

 

 

 

1,674

 

 

 

3,247

 

 

 

7,497

 

Goodwill impairment

 

 

20,581

 

 

 

 

 

 

20,581

 

 

 

 

Adjusted operating income

 

$

53,611

 

 

$

52,114

 

 

$

160,826

 

 

$

159,398

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

32,016

 

 

$

54,139

 

 

$

147,134

 

 

$

165,752

 

Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense

 

 

256

 

 

 

343

 

 

 

1,161

 

 

 

1,153

 

Supply chain optimization charges

 

 

3,247

 

 

 

1,674

 

 

 

3,247

 

 

 

7,497

 

Goodwill impairment

 

 

20,581

 

 

 

 

 

 

20,581

 

 

 

 

Adjusted income before income taxes

 

$

56,100

 

 

$

56,156

 

 

$

172,123

 

 

$

174,402

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to La-Z-Boy Incorporated

 

$

14,931

 

 

$

39,308

 

 

$

99,556

 

 

$

122,626

 

Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense

 

 

256

 

 

 

343

 

 

 

1,161

 

 

 

1,153

 

Tax effect of purchase accounting

 

 

(79

)

 

 

(87

)

 

 

(317

)

 

 

(286

)

Supply chain optimization charges

 

 

3,247

 

 

 

1,674

 

 

 

3,247

 

 

 

7,497

 

Tax effect of supply chain optimization

 

 

(545

)

 

 

(427

)

 

 

(483

)

 

 

(1,859

)

Goodwill impairment

 

 

20,581

 

 

 

 

 

 

20,581

 

 

 

 

Adjusted net income attributable to La-Z-Boy Incorporated

 

$

38,392

 

 

$

40,811

 

 

$

123,745

 

 

$

129,131

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")

 

$

0.36

 

 

$

0.91

 

 

$

2.35

 

 

$

2.83

 

Purchase accounting charges, net of tax, per share

 

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.02

 

Supply chain optimization charges, net of tax, per share

 

 

0.07

 

 

 

0.03

 

 

 

0.07

 

 

 

0.13

 

Goodwill impairment, net of tax, per share

 

 

0.49

 

 

 

 

 

 

0.48

 

 

 

 

Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")

 

$

0.92

 

 

$

0.95

 

 

$

2.92

 

 

$

2.98

 


(1

)

Includes incremental expense upon the sale of inventory acquired at fair value.

(2

)

Fiscal 2025 includes severance charges relating to manufacturing optimization actions in the United Kingdom. Fiscal 2024 includes severance charges related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico.

(3

)

Includes amortization of intangible assets.

(4

)

Fiscal 2025 includes the impairment of fixed assets and our customer relationship intangible asset in the United Kingdom. The first nine months of fiscal 2024 includes $3.0 million of accelerated depreciation of fixed assets related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The first nine months of fiscal 2024 also includes a $1.2 million gain related to the settlement of the Torreón, Mexico lease obligation on previously impaired assets.

 

 


LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES
SEGMENT INFORMATION

 

 

 

Quarter Ended

 

Year Ended

(Amounts in thousands)

 

4/26/2025

 

% of sales

 

4/27/2024

 

% of sales

 

4/26/2025

 

% of sales

 

4/27/2024

 

% of sales

GAAP operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale segment

 

$

10,120

 

 

2.5%

 

$

31,709

 

 

8.1%

 

 

$

82,213

 

 

5.6%

 

$

99,373

 

 

6.9%

Retail segment

 

 

32,414

 

 

13.1%

 

 

32,170

 

 

14.1%

 

 

 

105,417

 

 

11.7%

 

 

111,682

 

 

13.1%

Corporate and Other

 

 

(13,007

)

 

N/M

 

 

(13,782

)

 

N/M

 

 

(51,793

)

 

N/M

 

 

(60,259

)

 

N/M

Consolidated GAAP operating income

 

$

29,527

 

 

5.2%

 

$

50,097

 

 

9.1%

 

 

$

135,837

 

 

6.4%

 

$

150,796

 

 

7.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted items affecting operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale segment

 

$

23,885

 

 

 

 

$

1,729

 

 

 

 

$

24,052

 

 

 

 

$

7,715

 

 

 

Retail segment

 

 

 

 

 

 

 

89

 

 

 

 

 

140

 

 

 

 

 

89

 

 

 

Corporate and Other

 

 

199

 

 

 

 

 

199

 

 

 

 

 

797

 

 

 

 

 

798

 

 

 

Consolidated adjusted items affecting operating income

 

$

24,084

 

 

 

 

$

2,017

 

 

 

 

$

24,989

 

 

 

 

$

8,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale segment

 

$

34,005

 

 

8.5%

 

$

33,438

 

 

8.5%

 

 

$

106,265

 

 

7.2%

 

$

107,088

 

 

7.4%

Retail segment

 

 

32,414

 

 

13.1%

 

 

32,259

 

 

14.2%

 

 

 

105,557

 

 

11.7%

 

 

111,771

 

 

13.1%

Corporate and Other

 

 

(12,808

)

 

N/M

 

 

(13,583

)

 

N/M

 

 

(50,996

)

 

N/M

 

 

(59,461

)

 

N/M

Consolidated adjusted operating income

 

$

53,611

 

 

9.4%

 

$

52,114

 

 

9.4%

 

 

$

160,826

 

 

7.6%

 

$

159,398

 

 

7.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N/M - Not Meaningful