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Oct 26, 2024

La-Z-Boy Q2 2025 Earnings Report

La-Z-Boy reported strong results in Q2 2025, with the Retail segment delivering sales up 3%.

Key Takeaways

La-Z-Boy Incorporated reported a 2% increase in consolidated delivered sales, reaching $521 million. GAAP and Non-GAAP diluted EPS both stood at $0.71. The company's Retail segment saw a 3% sales increase, driven by acquisitions, new stores, and strong Labor Day sales. The board approved a 10% increase to the quarterly dividend, raising it to $0.22 per share.

Consolidated delivered sales increased by 2% year-over-year to $521 million.

Retail segment sales grew by 3%, boosted by acquisitions, new stores, and record Labor Day sales.

GAAP and Non-GAAP diluted EPS both reached $0.71.

The quarterly dividend was increased by 10% to $0.22 per share.

Total Revenue
$521M
Previous year: $511M
+1.9%
EPS
$0.71
Previous year: $0.74
-4.1%
Gross Profit
$231M
Previous year: $223M
+3.6%
Cash and Equivalents
$305M
Previous year: $330M
-7.3%
Free Cash Flow
-$1.21M
Previous year: $30.4M
-104.0%
Total Assets
$1.93B
Previous year: $1.88B
+2.6%

La-Z-Boy

La-Z-Boy

La-Z-Boy Revenue by Segment

Forward Guidance

The company expects industry sales trends to remain under pressure, but anticipates its growth will continue to outpace the industry. Fiscal third quarter sales are expected to be in the range of $505-525 million (an increase of 1-5% year-over-year) and Non-GAAP operating margin to be in the range of 6-7%.

Positive Outlook

  • Expects growth to continue to outpace the industry.
  • Fiscal third quarter sales are expected to be in the range of $505-525 million.
  • Sales are expected to increase of 1-5% year-over-year.
  • Impressive execution
  • Resolute focus on improving the agility of our operations.

Challenges Ahead

  • Industry sales trends are expected to remain under pressure.
  • Furniture and home furnishings related spending continues to be soft.
  • Home-related spending impacted by higher mortgage rates.
  • Lack of housing affordability
  • Lack of housing availability

Revenue & Expenses

Visualization of income flow from segment revenue to net income