• La-Z-Boy Incorporated Reports Strong Second Quarter Results; Retail Segment Delivered Sales Up 3%; Board Approves 10% Increase to Quarterly Dividend

    المصدر: Nasdaq GlobeNewswire / 19 نوفمبر 2024 16:15:00   America/New_York

    Fiscal 2025 Second Quarter Highlights:

    • Consolidated delivered sales of $521 million
      • Up 2% versus prior year
    • Retail segment sales increased 3%
      • Led by independent La-Z-Boy Furniture Galleries® acquisitions, new stores, and record Labor Day sales results
    • GAAP and Non-GAAP(1) diluted EPS of $0.71
    • Delivered sales and Non-GAAP(1) operating margin ahead of guidance
    • Company-owned La-Z-Boy Furniture Galleries® network grew by five stores, with three new stores, two newly acquired independent La-Z-Boy Furniture Galleries® stores, and an additional two-store acquisition signed and expected to close in the third quarter
    • Quarterly dividend increased to $0.22, 10% higher than the previous dividend

    MONROE, Mich., Nov. 19, 2024 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong second quarter results for the period ended October 26, 2024. For the quarter, sales totaled $521 million, growing 2% against the prior year comparable period. Operating margin was 7.4% for the quarter on a GAAP basis and 7.5% on a Non-GAAP(1) basis. Diluted earnings per share totaled $0.71 on a GAAP and Non-GAAP(1) basis. The company returned $70 million to shareholders through the first two quarters, nearly double last year's comparable period.

    Written sales trends also remained solid, with second quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) up 6% versus a year ago and written same-store sales (which exclude the impact of newly opened stores and newly acquired stores) down a modest 1% versus a year ago. Written same-store sales for the entire La-Z-Boy Furniture Galleries® network also decreased 1% versus the year ago period. Trends were strongest during the Labor Day period, with solid results driven by accelerated consumer traffic and superior in-store execution. Furniture and Home Furnishings advance monthly retail sales growth as reported by the U.S. Census Bureau was +1% for our fiscal quarter driven by growth in home furnishings, sundry items for the home that are outside of our primary focus. The industry remains challenged with home-related spending impacted by higher mortgage rates and a lack of housing affordability and availability.

    Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our second quarter results demonstrate the continued progress we are making against our strategic pillars and our strong execution throughout the enterprise. We were pleased to deliver a second consecutive quarter of sales growth across our business despite the continued challenging macroeconomic trends. The combination of our iconic brand, strong product portfolio particularly in reclining and motion furniture, and our talented team again produced steady results against persistently weak consumer demand. In our company-owned La-Z-Boy Furniture Galleries®, conversion rates, average ticket, and design sales all improved again year-over-year. We are consistently solving for the unique needs of our consumers and transforming houses into homes with our high quality, comfortable custom furniture solutions.”

    Whittington added, “While our Retail segment continues to lead the way, our Wholesale and Joybird businesses similarly made steady progress in the quarter. With our long heritage of made in North America manufacturing, customers continue to gravitate towards our handcrafted, customized product offering. Additionally, our Joybird brand is making meaningful improvements on its path to sustained profitable growth. Our Century Vision strategy continues to deliver and we have considerable runway ahead as we transform for the next hundred years. What will endure is the comfort, quality, and customization for which our iconic La-Z-Boy brand is known. We view these as our true differentiators, which will uniquely position us to continue to outperform the industry and grow share over the longer term.”

    Third Quarter Outlook:
    Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, said, “Our strong performance in the quarter is another proof point of controlling what we can control and driving positive outcomes in a challenged industry. We outperformed our guidance with strong performance particularly around the Labor Day holiday, impressive execution, and a resolute focus on improving the agility of our operations. Furniture and home furnishings related spending continues to be soft, but we are outperforming the industry in a sustainable manner. Our expectation is for industry sales trends to remain under pressure, though we expect our growth to continue to outpace the industry. Taking those factors into account, we expect fiscal third quarter sales to be in the range of $505-525 million (an increase of 1-5% year-over-year) and Non-GAAP operating margin(2) to be in the range of 6-7%.”

    Key Results:

      Quarter Ended  
    (Unaudited, amounts in thousands, except per share data and percentages) 10/26/2024 10/28/2023  Change
    Sales $521,027  $511,435  2%
           
    GAAP operating income  38,772   33,612  15%
    Non-GAAP operating income  39,028   40,510  (4)%
           
    GAAP operating margin  7.4%  6.6% 80 bps
    Non-GAAP operating margin  7.5%  7.9% (40) bps
           
    GAAP net income attributable to La-Z-Boy Incorporated  30,037   27,199  10%
    Non-GAAP net income attributable to La-Z-Boy Incorporated  30,226   32,269  (6)%
           
    Diluted weighted average common shares  42,154   43,401   
           
    GAAP diluted earnings per share $0.71  $0.63  13%
    Non-GAAP diluted earnings per share $0.71  $0.74  (4)%
               

    Liquidity Measures:

      Six Months Ended   Six Months Ended
    (Unaudited, amounts in thousands) 10/26/2024 10/28/2023 (Unaudited, amounts in thousands) 10/26/2024 10/28/2023
    Free Cash Flow     Cash Returns to Shareholders    
    Operating cash flow $68,253  $56,876  Share repurchases $53,144  $20,014 
    Capital expenditures  (32,769)  (26,501) Dividends  16,731   15,632 
    Free cash flow $35,484  $30,375  Cash returns to shareholders $69,875  $35,646 
                       


    (Unaudited, amounts in thousands) 10/26/2024 10/28/2023
    Cash and cash equivalents $303,062  $329,632 
    Restricted cash  —   3,835 
    Total cash, cash equivalents and restricted cash $303,062  $333,467 
             

    Fiscal 2025 Second Quarter Results versus Fiscal 2024 Second Quarter:

    • Consolidated sales in the second quarter of Fiscal 2025 increased 2% to $521 million versus last year, primarily driven by higher delivered volume within our Retail segment and Joybird business
    • Consolidated GAAP operating margin was 7.4% versus 6.6%
      • Consolidated Non-GAAP(1) operating margin decreased 40 basis points to 7.5% versus 7.9%, due to demand challenges in our casegoods import business and a significant temporary customer disruption in our international wholesale business
    • GAAP diluted EPS increased to $0.71 from $0.63 and Non-GAAP(1) diluted EPS totaled $0.71 versus $0.74 last year in the comparable period

    Retail Segment:

    • Sales:
      • Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 6% with growth from new and acquired stores, more than offsetting slightly lower same-store sales compared to the year ago period
        • Written same-store sales decreased 1%, driven by lower traffic from softer industry-wide demand, partially offset by strong execution driving higher conversion rates
      • Delivered sales increased 3% to $222 million versus last year, primarily due to growth from new and acquired stores
    • Operating Margin:
      • GAAP operating margin and GAAP operating income were 12.6% and $28 million, versus 13.0% and $28 million, respectively
        • Non-GAAP(1) operating margin and Non-GAAP(1) operating income were 12.6% and $28 million, down 40 basis points and flat, respectively, driven by an increase in selling expense and fixed costs supporting our long-term strategy of growing our Retail business through new and acquired stores, partially offset by gross margin improvements resulting from a favorable shift in product mix

    Wholesale Segment:

    • Sales:
      • Sales were roughly flat at $364 million, as higher sales to our Retail segment mostly offset lowered delivered sales in our international wholesale business
    • Operating Margin:
      • GAAP operating margin was 6.7% versus 5.9%
        • Non-GAAP(1) operating margin was 6.8%, down 90 basis points from the year ago period driven by demand and macroeconomic challenges in our casegoods import business and fixed cost deleverage on lower sales in our international wholesale business due to a significant temporary customer disruption

    Corporate & Other:

    • Joybird written sales increased 1% and delivered sales increased 20% to $39 million on stronger sales trends in both our online and retail businesses
    • Joybird operating margin performance saw year-over-year improvement from higher gross margins driven by favorable product mix and fixed cost leverage on higher sales leading to breakeven operating margin

    Balance Sheet and Cash Flow, Fiscal 2025 Second Quarter:

    • Ended the quarter with $303 million in cash(3) and no external debt
    • Generated $16 million in cash from operations versus $31 million in the second quarter of last fiscal year. Year to date, cash flow from operations was $68 million, up 20% from last year's comparable period
    • Invested $17 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels)
    • Returned approximately $28 million to shareholders, including $19 million in share repurchases and $8 million in dividends. Year to date, $70 million has been returned to shareholders, nearly double the same period last year

    Dividend:
    On November 19, 2024, the Board of Directors declared a quarterly cash dividend of $0.22 per share on the common stock of the company, a 10% increase over the previous dividend. The dividend will be paid on December 16, 2024, to shareholders of record on December 5, 2024.

    Conference Call:
    La-Z-Boy will hold a conference call with the investment community on Wednesday, November 20, 2024, 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: 770725.

    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: 51407. The webcast replay will be available for one year.

    Investor Relations Contact:
    Mark Becks, CFA, (734) 457-9538
    mark.becks@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 193 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of over 350 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 its 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)Non-GAAP amounts for the second quarter of fiscal 2025 exclude:

    • 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

    Non-GAAP amounts for the second quarter of fiscal 2024 exclude:

    • a $6.6 million pre-tax, or $0.11 per diluted share, related to our 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

    (2)This reference to Non-GAAP operating margin for a future period is a Non-GAAP financial measure. We have not provided a reconciliation of Non-GAAP 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 Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures: Segment Information” for detailed information on calculating the Non-GAAP financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

    (3)Cash includes cash, cash equivalents and restricted cash.

    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 2024 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.

    Non-GAAP 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 Non-GAAP financial measures. Management uses these Non-GAAP financial measures when assessing our ongoing performance. This press release contains references to Non-GAAP operating income (on a consolidated basis and by segment), Non-GAAP operating margin (on a consolidated basis and by segment), and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share, Non-GAAP diluted earnings per share (and components thereof, including Non-GAAP income before income taxes and Non-GAAP net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges and purchase accounting charges. The supply chain optimization charges 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 Non-GAAP 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 Non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

    Management believes that presenting certain Non-GAAP 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 Non-GAAP 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 Six Months Ended
    (Unaudited, amounts in thousands, except per share data) 10/26/2024 10/28/2023 10/26/2024 10/28/2023
    Sales $521,027  $511,435  $1,016,559  $993,086 
    Cost of sales  290,379   288,830   572,568   564,753 
    Gross profit  230,648   222,605   443,991   428,333 
    Selling, general and administrative expense  191,876   188,993   372,849   360,195 
    Operating income  38,772   33,612   71,142   68,138 
    Interest expense  (99)  (101)  (309)  (223)
    Interest income  3,730   4,042   8,154   7,098 
    Other income (expense), net  (1,879)  104   (2,497)  660 
    Income before income taxes  40,524   37,657   76,490   75,673 
    Income tax expense  10,671   9,963   19,833   20,053 
    Net income  29,853   27,694   56,657   55,620 
    Net (income) attributable to noncontrolling interests  184   (495)  (461)  (942)
    Net income attributable to La-Z-Boy Incorporated $30,037  $27,199  $56,196  $54,678 
             
    Basic weighted average common shares  41,708   43,008   41,880   43,123 
    Basic net income attributable to La-Z-Boy Incorporated per share $0.72  $0.63  $1.34  $1.27 
             
    Diluted weighted average common shares  42,154   43,401   42,316   43,479 
    Diluted net income attributable to La-Z-Boy Incorporated per share $0.71  $0.63  $1.33  $1.26 
                     


    LA-Z-BOY INCORPORATED
    CONSOLIDATED BALANCE SHEET
         
    (Unaudited, amounts in thousands, except par value) 10/26/2024 4/27/2024
    Current assets    
    Cash and equivalents $303,062  $341,098 
    Receivables, net of allowance of $5,586 at 10/26/2024 and $5,076 at 4/27/2024  128,518   139,213 
    Inventories, net  289,209   263,237 
    Other current assets  98,372   93,260 
    Total current assets  819,161   836,808 
    Property, plant and equipment, net  314,387   298,224 
    Goodwill  221,950   214,453 
    Other intangible assets, net  49,345   47,251 
    Deferred income taxes – long-term  8,388   10,283 
    Right of use lease assets  453,434   446,466 
    Other long-term assets, net  61,530   59,957 
    Total assets $1,928,195  $1,913,442 
         
    Current liabilities    
    Accounts payable $107,545  $96,486 
    Lease liabilities, short-term  78,627   77,027 
    Accrued expenses and other current liabilities  248,718   263,768 
    Total current liabilities  434,890   437,281 
    Lease liabilities, long-term  411,414   404,724 
    Other long-term liabilities  61,609   58,077 
    Shareholders' equity    
    Preferred shares – 5,000 authorized; none issued  —   — 
    Common shares, $1.00 par value – 150,000 authorized; 41,647 outstanding at 10/26/2024 and 42,440 outstanding at 4/27/2024  41,647   42,440 
    Capital in excess of par value  377,258   368,485 
    Retained earnings  594,632   598,009 
    Accumulated other comprehensive loss  (3,612)  (5,870)
    Total La-Z-Boy Incorporated shareholders' equity  1,009,925   1,003,064 
    Noncontrolling interests  10,357   10,296 
    Total equity  1,020,282   1,013,360 
    Total liabilities and equity $1,928,195  $1,913,442 
             


    LA-Z-BOY INCORPORATED
    CONSOLIDATED STATEMENT OF CASH FLOWS
       
      Six Months Ended
    (Unaudited, amounts in thousands) 10/26/2024 10/28/2023
    Cash flows from operating activities    
    Net income $56,657  $55,620 
    Adjustments to reconcile net income to cash provided by operating activities    
    Loss on disposal and impairment of assets  40   559 
    Gain on sale of investments  (113)  (1,136)
    Provision for doubtful accounts  477   44 
    Depreciation and amortization  23,644   25,092 
    Amortization of right-of-use lease assets  41,817   37,285 
    Lease impairment/(settlement)  —   (1,175)
    Equity-based compensation expense  9,047   7,337 
    Change in deferred taxes  2,377   (340)
    Change in receivables  10,000   (9,843)
    Change in inventories  (22,625)  9,757 
    Change in other assets  (9,626)  (1,361)
    Change in payables  12,380   (4,040)
    Change in lease liabilities  (42,721)  (38,121)
    Change in other liabilities  (13,101)  (22,802)
    Net cash provided by operating activities  68,253   56,876 
         
    Cash flows from investing activities    
    Proceeds from disposals of assets  176   4,037 
    Capital expenditures  (32,769)  (26,501)
    Purchases of investments  (5,317)  (17,485)
    Proceeds from sales of investments  10,225   21,956 
    Acquisitions  (17,841)  (7,311)
    Net cash used for investing activities  (45,526)  (25,304)
         
    Cash flows from financing activities    
    Payments on finance lease liabilities  (291)  (206)
    Holdback payments for acquisitions  —   (5,000)
    Stock issued for stock and employee benefit plans, net of shares withheld for taxes  9,887   (1,859)
    Repurchases of common stock  (53,144)  (20,014)
    Dividends paid to shareholders  (16,731)  (15,632)
    Dividends paid to minority interest joint venture partners (1)  (1,414)  (1,172)
    Net cash used for financing activities  (61,693)  (43,883)
         
    Effect of exchange rate changes on cash and equivalents  930   (900)
    Change in cash, cash equivalents and restricted cash  (38,036)  (13,211)
    Cash, cash equivalents and restricted cash at beginning of period  341,098   346,678 
    Cash, cash equivalents and restricted cash at end of period $303,062  $333,467 
         
    Supplemental disclosure of non-cash investing activities    
    Capital expenditures included in payables $4,420  $3,079 
             


     (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 Six Months Ended
    (Unaudited, amounts in thousands) 10/26/2024 10/28/2023 10/26/2024 10/28/2023
    Sales        
    Wholesale segment:        
    Sales to external customers $258,983  $263,738  $515,003  $499,989 
    Intersegment sales  104,914   101,229   199,794   198,453 
    Wholesale segment sales  363,897   364,967   714,797   698,442 
             
    Retail segment sales  221,564   214,309   423,934   422,552 
             
    Corporate and Other:        
    Sales to external customers  40,480   33,388   77,622   70,545 
    Intersegment sales  1,607   2,844   3,173   5,748 
    Corporate and Other sales  42,087   36,232   80,795   76,293 
             
    Eliminations  (106,521)  (104,073)  (202,967)  (204,201)
    Consolidated sales $521,027  $511,435  $1,016,559  $993,086 
             
    Operating Income (Loss)        
    Wholesale segment $24,529  $21,450  $48,528  $44,953 
    Retail segment  27,897   27,935   48,546   57,199 
    Corporate and Other  (13,654)  (15,773)  (25,932)  (34,014)
    Consolidated operating income $38,772  $33,612  $71,142  $68,138 
                     


    LA-Z-BOY INCORPORATED
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
         
      Quarter Ended Six Months Ended
    (Amounts in thousands, except per share data) 10/26/2024 10/28/2023 10/26/2024 10/28/2023
    GAAP gross profit $230,648  $222,605  $443,991  $428,333 
    Purchase accounting charges (1)  —   —   140   — 
    Supply chain optimization charges (2)  —   3,615   —   3,762 
    Non-GAAP gross profit $230,648  $226,220  $444,131  $432,095 
             
    GAAP SG&A $191,876  $188,993  $372,849  $360,195 
    Purchase accounting charges (3)  (256)  (253)  (510)  (508)
    Supply chain optimization charges (4)  —   (3,030)  —   (1,855)
    Non-GAAP SG&A $191,620  $185,710  $372,339  $357,832 
             
    GAAP operating income $38,772  $33,612  $71,142  $68,138 
    Purchase accounting charges  256   253   650   508 
    Supply chain optimization charges  —   6,645   —   5,617 
    Non-GAAP operating income $39,028  $40,510  $71,792  $74,263 
             
    GAAP income before income taxes $40,524  $37,657  $76,490  $75,673 
    Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense  256   253   650   556 
    Supply chain optimization charges  —   6,645   —   5,617 
    Non-GAAP income before income taxes $40,780  $44,555  $77,140  $81,846 
             
    GAAP net income attributable to La-Z-Boy Incorporated $30,037  $27,199  $56,196  $54,678 
    Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense  256   253   650   556 
    Tax effect of purchase accounting  (67)  (67)  (168)  (147)
    Supply chain optimization charges  —   6,645   —   5,617 
    Tax effect of supply chain optimization  —   (1,761)  —   (1,489)
    Non-GAAP net income attributable to La-Z-Boy Incorporated $30,226  $32,269  $56,678  $59,215 
             
    GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $0.71  $0.63  $1.33  $1.26 
    Purchase accounting charges, net of tax, per share  —   —   0.01   0.01 
    Supply chain optimization charges, net of tax, per share  —   0.11   —   0.09 
    Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $0.71  $0.74  $1.34  $1.36 


     (1)Includes incremental expense upon the sale of inventory acquired at fair value.
     (2)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)The second quarter of fiscal 2024 includes 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 six 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 NON-GAAP FINANCIAL MEASURES
    SEGMENT INFORMATION
         
      Quarter Ended Six Months Ended
    (Amounts in thousands) 10/26/2024 % of sales 10/28/2023 % of sales 10/26/2024 % of sales 10/28/2023 % of sales
    GAAP operating income (loss)                
    Wholesale segment $24,529  6.7% $21,450  5.9% $48,528  6.8% $44,953  6.4%
    Retail segment  27,897  12.6%  27,935  13.0%  48,546  11.5%  57,199  13.5%
    Corporate and Other  (13,654) N/M  (15,773) N/M  (25,932) N/M  (34,014) N/M
    Consolidated GAAP operating income $38,772  7.4% $33,612  6.6% $71,142  7.0% $68,138  6.9%
                     
    Non-GAAP items affecting operating income                
    Wholesale segment $57    $6,699    $112    $5,726   
    Retail segment  —     —     140     —   
    Corporate and Other  199     199     398     399   
    Consolidated Non-GAAP items affecting operating income $256    $6,898    $650    $6,125   
                     
    Non-GAAP operating income (loss)                
    Wholesale segment $24,586  6.8% $28,149  7.7% $48,640  6.8% $50,679  7.3%
    Retail segment  27,897  12.6%  27,935  13.0%  48,686  11.5%  57,199  13.5%
    Corporate and Other  (13,455) N/M  (15,574) N/M  (25,534) N/M  (33,615) N/M
    Consolidated Non-GAAP operating income $39,028  7.5% $40,510  7.9% $71,792  7.1% $74,263  7.5%
                     
    N/M - Not Meaningful                
                     

    Primary Logo

شارك على،