MONROE, Mich. - La-Z-Boy Incorporated (NYSE: NYSE:LZB), a prominent player in residential furniture retail and manufacturing, has reported a 2% increase in consolidated sales for the second quarter ended October 26, 2024, amounting to $521 million. The company's GAAP and Non-GAAP diluted earnings per share (EPS) stood at $0.71, aligning with the positive sales trajectory.
The retail segment, led by La-Z-Boy Furniture Galleries®, witnessed a 3% sales uptick, bolstered by acquisitions, new store openings, and robust Labor Day sales. The company's network expansion included five new stores, with two additional acquisitions set to close in the third quarter. Furthermore, La-Z-Boy announced a 10% dividend increase to $0.22 per share.
Despite a challenging macroeconomic environment characterized by higher mortgage rates and housing market constraints, La-Z-Boy outperformed the industry's modest +1% growth as reported by the U.S. Census Bureau for the fiscal quarter. Melinda D. Whittington, President and CEO, credited the company's strategic pillars and strong execution for the consecutive quarters of sales growth amidst subdued consumer demand.
La-Z-Boy's Retail segment's written sales climbed 6% year-over-year, although written same-store sales saw a slight 1% decline due to lower industry-wide demand. The company's Wholesale and Joybird businesses also made steady progress. Joybird, in particular, witnessed a 20% increase in delivered sales to $39 million, reflecting stronger sales trends online and in retail stores.
Looking forward, CFO Bob Lucian projected fiscal third-quarter sales to range between $505-525 million, representing a 1-5% year-over-year increase, with Non-GAAP operating margins anticipated to be between 6-7%.
The company's balance sheet remains strong, with $303 million in cash and no external debt. La-Z-Boy returned $70 million to shareholders in the first two quarters, nearly doubling the amount from the same period last year.
This article is based on a press release statement from La-Z-Boy Incorporated.
In other recent news, La-Z-Boy Incorporated has announced several significant developments. The company's Senior Vice President and Chief Financial Officer, Bob Lucian, is set to retire at the end of the fiscal year on April 26, 2025, with Taylor Luebke, the company's Vice President of Finance and Treasurer, taking over the CFO role starting January 1, 2025.
La-Z-Boy also reported a 3% increase in consolidated delivered sales, amounting to $496 million in the fiscal 2025 first quarter. The company's wholesale segment sales saw a 5% increase, while retail segment delivered sales witnessed a decrease of 3%.
In addition, Matt Baer, CEO at Stitch Fix (NASDAQ:SFIX), has been appointed to La-Z-Boy's Board of Directors. The company also gained shareholder approval for its 2024 Omnibus Incentive Plan, which aims to attract and retain top talent by offering various awards and authorizes 3,090,000 shares for grants.
For the full year, La-Z-Boy anticipates a tax rate of 25.5% to 26.5%, with capital expenditures projected to be between $70 million and $80 million. These are among the recent developments for the company.
InvestingPro Insights
La-Z-Boy's recent financial performance aligns with several key metrics and insights from InvestingPro. The company's 2% increase in consolidated sales and steady earnings per share reflect its resilience in a challenging market. This performance is underscored by InvestingPro data showing a market capitalization of $1.77 billion and a P/E ratio of 14.89, suggesting a relatively modest valuation compared to its earnings.
InvestingPro Tips highlight La-Z-Boy's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 13 consecutive years and has raised its dividend for 3 consecutive years, which is consistent with the 10% dividend increase mentioned in the article. This commitment to shareholder returns is further supported by the company's strong balance sheet, with InvestingPro noting that liquid assets exceed short-term obligations.
The article's mention of La-Z-Boy's ability to outperform industry growth despite macroeconomic challenges is reinforced by InvestingPro's observation that the company operates with a moderate level of debt and has cash flows that can sufficiently cover interest payments. This financial prudence positions La-Z-Boy well to navigate the current economic environment.
For investors seeking a deeper understanding of La-Z-Boy's financial health and prospects, InvestingPro offers 8 additional tips beyond those mentioned here, providing a comprehensive analysis of the company's strengths and potential risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.