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Consolidated Delivered Sales: $521 million, up 2% year-over-year.
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Retail Segment Sales: Increased 3%, driven by acquisitions and new store openings.
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GAAP and Non-GAAP Diluted EPS: $0.71.
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Quarterly Dividend: $0.22, a 10% increase.
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Written Same-Store Sales: Declined 1% year-over-year for company-owned retail segment.
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Joybird Delivered Sales: $39 million, up 20% year-over-year.
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Consolidated GAAP Operating Margin: 7.4%.
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Non-GAAP Operating Margin: 7.5%, a 40 basis points decline year-over-year.
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Cash and Cash Equivalents: $303 million with no externally funded debt.
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Cash Flow from Operations: $68 million year-to-date, up 20% from last year.
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Store Network: 358 total La-Z-Boy Furniture Galleries, with 193 company-owned stores.
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Share Repurchases: 467,000 shares repurchased in the quarter.
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Capital Expenditures: $17 million in the quarter.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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La-Z-Boy Inc (NYSE:LZB) reported a 2% increase in total delivered sales for the second consecutive quarter, reaching $521 million.
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The retail segment sales increased by 3%, driven by acquisitions, new store openings, and record Labor Day results.
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GAAP and non-GAAP diluted EPS were reported at $0.71, with a quarterly dividend increase of 10% to $0.22.
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The company made significant progress in its Century Vision growth strategy, including opening new stores and acquiring independent La-Z-Boy Furniture Galleries.
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La-Z-Boy Inc (NYSE:LZB) maintained a strong balance sheet with $303 million in cash and no externally funded debt.
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The furniture industry remains challenged by higher mortgage rates and lack of housing affordability, impacting consumer spending.
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Consolidated non-GAAP operating margin decreased by 4% compared to the previous year, reflecting demand challenges in the case goods import business.
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Written same-store sales for the company-owned retail segment declined by 1% compared to the prior year.
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The wholesale segment faced margin compression due to demand challenges and a temporary customer disruption in the international business.
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Inventory levels increased by 8% from the previous year, which was higher than expected.
Q: Can you discuss the impact of international transitions on the wholesale segment’s year-over-year margin decline? A: Robert Lucian, CFO, explained that roughly half of the margin decline was due to international transitions, particularly the shift from ScS to DFS in the UK, alongside challenges in the casegoods business. Melinda Whittington, CEO, added that the core La-Z-Boy branded North America business saw positive margin growth.