The chart below shows how LZB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LZB sees a +1.25% change in stock price 10 days leading up to the earnings, and a +1.42% change 10 days following the report. On the earnings day itself, the stock moves by -0.53%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Growth Performance: Consolidated delivered sales of $521 million, up 2% versus the prior year.
Retail Segment Sales Increase: Our retail segment sales increased 3%, led by acquisitions of independent La-Z-Boy Furniture Galleries, new store openings, and record Labor Day results.
Earnings Per Share and Dividend: GAAP and non-GAAP diluted EPS of $0.71, a quarterly dividend of $0.22, an increase of 10%.
Sales Growth Momentum: Our total delivered sales grew for the second consecutive quarter, driven by our iconic brand and outstanding execution across the company.
Strong Cash Position: We ended the quarter with a strong balance sheet of $303 million in cash and no externally funded debt.
Negative
Operating Margin Decline: Consolidated GAAP operating margin was $39 million and non-GAAP operating margin was also $39 million, a decrease of 4% versus last year's second quarter.
Operating Margin Decline: Consolidated GAAP operating margin was 7.4% and non-GAAP operating margin was 7.5%, reflecting a 40 basis points decline versus last year, due to demand challenges in our Case goods import business and a significant temporary customer disruption in our international wholesale business.
Operating Margin Decline: Retail non-GAAP operating margin was 12.6% versus 13% in the prior year quarter, driven by slightly lower same-store sales and an increase in selling expense and fixed costs.
Earnings Per Share Comparison: Consolidated diluted EPS was $0.71 for the second quarter versus 63% - $0.63 in the prior year quarter. Non-GAAP diluted EPS was $0.71 versus $0.74 last year.
Sales Growth in Q2: Consolidated second quarter sales increased 2% to $521 million versus the prior year, primarily driven by higher delivered volume within our retail segment and Joybird business.
La-Z-Boy Incorporated (LZB) Q2 2025 Earnings Call Transcript
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