La-Z-Boy Reports Financial Results for Fourth Quarter and Full Year

June 21, 2023  by HFBusiness Staff in Business Strategy, Industry   

Fourth Quarter 2023 Financial Highlights:

~ Consolidated sales of $561 million
~ -12% adjusting for the 53rd week in the fourth quarter of fiscal 2022, versus last year, which benefited from a strong backlog

~ Retail segment sales increased 4% to $243 million
~ +12% adjusting for the 53rd week in the fourth quarter of fiscal 2022
~ Written same-store sales were essentially flat

~ GAAP operating income decreased by 31%
~ Non-GAAP operating income decreased by 15%
~ GAAP operating margin decreased 190 basis points to 9.6%
~ Non-GAAP operating margin increased 40 basis points to 9.8%

~ GAAP diluted EPS of $0.79, with Non-GAAP diluted EPS of $0.99, a 7% decrease

~ Cash generated from operating activities was $78 million

Fiscal 2023 Financial Highlights:

~ Consolidated sales of $2.3 billion
~ +2% adjusting for the 53^rd week in fiscal 2022

~ Retail segment sales increased 22% to $982 million
~ Record sales, operating profit, and operating margin

~ GAAP operating income increased by 2%
~ Non-GAAP operating income increased by 17%
~ GAAP operating margin increased 20 basis points to 9.0%
~ Non-GAAP operating margin increased 140 basis points to 9.5%

~ Record diluted EPS
~ GAAP diluted EPS increased by 3% to $3.48
~ Non-GAAP diluted EPS increased by 24% to $3.86

~ Cash generated from operating activities more than doubled to $205 million

Melinda D. Whittington, president and chief executive officer of La-Z-Boy Incorporated, said, "I would like to congratulate and thank our entire organization for delivering another strong year, with record Retail segment sales and operating profit, and record consolidated diluted EPS."

"We achieved these results through disciplined supply chain investments and solid execution in our company owned retail stores, reflecting the strength of our vertically integrated Retail and Wholesale model. We are pleased with our strong finish in the fourth quarter, where we were able to maintain roughly flat written same-store sales despite the declining macro environment."

Whittington added, "Our results were enabled by our strong portfolio of iconic brands, collaboration and leadership of our talented employees, and execution of our value proposition - comfortable custom furniture with quick delivery - as our backlog has returned to more normalized historical levels. Our playbook is working, with our Retail penetration increasing through new store growth and independent Furniture Galleries^® store acquisitions."

"We are confident in our ability to advance our business in an uncertain macro environment with our strong debt free balance sheet allowing us to invest in our Century Vision strategy to drive future growth. The foundation is set through Century Vision to expand brand reach and we continue to target sales growth exceeding the industry growth rate and double-digit operating margins over the long term. We look forward to executing this business strategy to create long-term shareholder value."