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Jul 29, 2023

La-Z-Boy Q1 2024 Earnings Report

La-Z-Boy reported first quarter fiscal 2024 results, with sales and operating margin in line with guidance.

Key Takeaways

La-Z-Boy's first quarter fiscal 2024 saw sales of $482 million, a 20% decrease compared to the previous year, which benefited from pandemic-related backlog. Company-owned Retail written same-store sales increased by 2%. GAAP diluted EPS was $0.63, and Non-GAAP diluted EPS was $0.62. The company resumed share buybacks, repurchasing $10 million in shares.

Company owned Retail written same-store sales increased 2%.

Delivered sales and operating margin were in line with guidance.

GAAP diluted EPS was $0.63, and Non-GAAP diluted EPS was $0.62.

Share buybacks resumed in the quarter with $10 million in share repurchases.

Total Revenue
$482M
Previous year: $604M
-20.3%
EPS
$0.62
Previous year: $0.91
-31.9%
Gross Profit
$206M
Previous year: $241M
-14.8%
Cash and Equivalents
$336M
Previous year: $238M
+41.3%
Free Cash Flow
$12.5M
Previous year: $12.1M
+2.9%
Total Assets
$1.85B
Previous year: $1.92B
-3.7%

La-Z-Boy

La-Z-Boy

La-Z-Boy Revenue by Segment

Forward Guidance

The company expects sales in the second quarter of fiscal 2024 to be slightly higher than the first quarter, within the range of $490-$510 million, and operating margin to be in the range of 6.5%-7.5%.

Positive Outlook

  • Sales expected to be between $490 million and $510 million.
  • Operating margin expected to be between 6.5% and 7.5%.
  • Sales expected to be slightly higher than the first quarter.
  • Expecting some improvement in the back half of our fiscal year consistent with historic seasonality of consumers' furniture purchases.
  • Focusing on controlling what we can control, leveraging our brand and strong product offerings, and strengthening conversion levels.

Challenges Ahead

  • Consumer trends are expected to remain soft.
  • Sales trends are expected to remain challenged against last year.
  • The furniture market is expected to remain challenged due to the overall macro-economic environment.
  • Increase marketing investment in support of our new "Long Live the Lazy" campaign, which started in August.
  • Macroeconomic headwinds facing La-Z-Boy and our peers in the industry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income