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Apr 27, 2024

La-Z-Boy Q4 2024 Earnings Report

Reported solid fourth quarter and full year results.

Key Takeaways

La-Z-Boy Incorporated reported Q4 sales of $554 million, a 1% decrease year-over-year but a 22% increase compared to the pre-pandemic Q4 2019. GAAP diluted EPS was $0.91, and non-GAAP diluted EPS was $0.95. The company generated $53 million in operating cash flow for the quarter and expanded its company-owned La-Z-Boy Furniture Galleries® network by three stores.

Consolidated delivered sales of $554 million, down 1% versus prior year but up 22% versus pre-pandemic Q4 2019.

GAAP diluted EPS of $0.91; Non-GAAP diluted EPS of $0.95.

Generated $53 million in operating cash flow for the quarter.

Grew company-owned La-Z-Boy Furniture Galleries® network by three stores.

Total Revenue
$554M
Previous year: $561M
-1.4%
EPS
$0.95
Previous year: $0.99
-4.0%
Q4 operating cash flow
$53M
Gross Profit
$240M
Previous year: $260M
-7.7%
Cash and Equivalents
$341M
Previous year: $343M
-0.7%
Free Cash Flow
$105M
Previous year: $136M
-23.3%
Total Assets
$1.91B
Previous year: $1.87B
+2.5%

La-Z-Boy

La-Z-Boy

La-Z-Boy Revenue by Segment

Forward Guidance

For the first quarter of Fiscal 2025, La-Z-Boy expects delivered sales to be in the range of $475-495 million and Non-GAAP operating margin to be in the range of 6-7%.

Positive Outlook

  • Expects to continue to outperform the industry in Fiscal 2025.
  • Growth will be supported by executing our Century Vision strategy
  • Opening of 12 to 15 new La-Z-Boy Furniture Galleries® stores, mainly in the second half of the fiscal.
  • Assortment and best-in-class motion offerings are resonating with consumers in the marketplace.
  • Off to a good start and encouraged by solid Memorial Day results

Challenges Ahead

  • Expects the industry to continue to be challenged, down by as much as 5%.
  • Any improved industry trends occurring late in our fiscal year, towards calendar 2025.
  • Industry continues to grapple with higher for longer interest rates
  • Housing turnover near 30-year lows negatively impacting store traffic.
  • 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 in July.

Revenue & Expenses

Visualization of income flow from segment revenue to net income