Tue, Aug 20, 8:26 PM (147 days ago)
La-Z-Boy Incorporated reported a modest revenue increase of 2.9% to $495,532 in Q1 FY2025 compared to $481,651 in Q1 FY2024, primarily driven by higher sales volumes in the Wholesale segment and contributions from recent retail acquisitions. However, operating income declined by 6.2% to $32,370, with operating margins decreasing to 6.5% from 7.2%. Gross margins improved slightly due to lower input costs but were offset by a shift in sales mix favoring the lower-margin Wholesale segment. The Retail segment experienced a 2.8% sales decrease, attributed to reduced same-store sales amidst a challenging macroeconomic environment. Cash flow from operations significantly improved to $52,318, up from $25,913, bolstered by increased customer deposits. La-Z-Boy's cash and equivalents rose to $342,270, while investments decreased to $4,509. Financing activities saw a $34,315 cash outflow, primarily due to share repurchases totaling $33,673. The effective tax rate decreased to 25.5% from 26.5% due to stock-based compensation benefits. Overall, La-Z-Boy's financial health reflects a blend of stable revenue growth, operational challenges, and strategic investments in retail expansion amid a complex market landscape.