La-Z-Boy Earnings Call Transcripts
Fiscal Year 2026
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Fiscal 2026 closed with record new store openings, strong retail growth, and improved operating margins, despite industry softness and inflationary pressures. Strategic supply chain and portfolio optimizations, disciplined capital allocation, and brand innovation position the company for long-term growth.
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A strategic pivot toward direct-to-consumer sales and expanded company-owned retail is driving growth, with a new target of up to 450 stores and enhanced omni-channel capabilities. Financial discipline, margin improvement initiatives, and a strong cash position support continued investment and shareholder returns. Industry recovery is expected to further accelerate growth.
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Third quarter sales rose 4% year-over-year to $542 million, driven by retail expansion and a major acquisition, while adjusted operating margin reached 6.1%. Strategic initiatives, including business divestitures and supply chain transformation, are expected to improve margins by up to 100 basis points.
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Modest sales growth and margin expansion were achieved despite a challenging market, with strong cash flow and a major retail acquisition. Strategic exits from non-core businesses and supply chain transformation are expected to boost margins, while capital allocation remains balanced between reinvestment and shareholder returns.
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Sales grew in retail and wholesale segments, but overall revenue dipped 1% year-over-year due to a 20% decline in Joybird. Margin expansion in wholesale was offset by retail margin compression from new store investments. The company remains focused on strategic growth and supply chain transformation.
Fiscal Year 2025
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Q4 and FY25 saw 3% sales growth, strong cash flow, and margin performance at or above guidance, driven by retail expansion and supply chain agility. FY26 outlook anticipates continued outperformance despite macro headwinds, with investments in new stores and distribution redesign.
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Century Vision drives growth through brand strength, retail expansion, and supply chain agility, targeting double-digit margins and 2X industry sales growth. A strong balance sheet supports acquisitions and omnichannel initiatives, while operational improvements and consumer insights position the company for outperformance as the industry recovers.
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Sales grew 4% year-over-year to $522 million, with strong retail and Joybird performance, margin expansion, and continued execution of the Century Vision strategy. Guidance for Q4 anticipates further sales and margin growth, despite ongoing industry and international headwinds.
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Leadership outlined a strategy focused on retail and D2C growth, supported by strong financials and brand innovation. The company is expanding its retail footprint, acquiring independent stores, and investing in technology and consumer engagement to outperform the market and capture future industry tailwinds.
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Q2 sales rose 2% to $521M, led by retail and Joybird, with EPS at $0.71 and a 10% dividend hike. Despite industry headwinds, guidance calls for continued outperformance, ongoing store expansion, and prudent capital allocation.
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Fiscal Q1 2025 sales rose 3% year-over-year to $496 million, with strong wholesale growth offsetting retail softness. Operating margins compressed due to fixed cost deleverage, but cash flow and balance sheet remain robust. Industry headwinds persist, but strategic investments and store acquisitions position the company for long-term growth.
Fiscal Year 2024
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Q4 sales were $554M, down 1% year-over-year but up 22% from pre-pandemic levels, with strong cash flow and margin performance. The company outperformed a contracting industry, expanded its retail footprint, and expects modest growth in fiscal 2025 despite ongoing macro headwinds.