La-Z-Boy (LZB) investor relations material

Executive summary

• Sales grew 2% in retail and 1% in wholesale, but consolidated sales declined 1% year-over-year to $492M due to a 20% drop in Joybird and lower international volumes.

• Operating income fell 32% to $22M, with net income at $18.2M, reflecting margin pressures from higher supply chain costs and lower delivered volumes.

• Opened two new stores and announced a 15-store Southeast acquisition, the largest in company history.

• Maintained a strong balance sheet with $319M in cash, no external debt, and $36M in operating cash flow.

• Joybird segment sales declined 20%, with physical stores outperforming online.

Financial highlights

• Consolidated sales were $492M, down 1% year-over-year.

• Adjusted operating income was $23M (4.8% margin); GAAP operating income was $22M (4.5% margin).

• Diluted EPS was $0.44 GAAP and $0.47 adjusted, down from $0.61 prior year.

• Net income attributable to shareholders was $18.2M, down from $26.2M year-over-year.

• Capital expenditures were $18M, mainly for new stores, remodels, and manufacturing.

Outlook and guidance

• Fiscal Q2 sales expected between $510M–$530M, with adjusted operating margin of 4.5%–6%.

• Full-year capital expenditures projected at $90M–$100M, focused on new stores, remodels, and distribution transformation.

• Minimal share repurchases expected for the rest of the year due to business investments.

• Full-year tax rate anticipated at 26%–27%.

• Continued investment in omni-channel and retail expansion, with a focus on long-term growth.