Loading...
01/11 03:18
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. While there are positive elements like increased shareholder returns and a solid cash position, there are also concerns. Declines in same-store sales and macroeconomic uncertainties negatively impact sentiment. The Q&A reveals management's uncertainty about future pricing and tariff impacts, which could worry investors. The overall financial performance shows modest growth but is offset by competitive pressures and weak margins. Given the market cap, the stock is likely to see a neutral movement in response to these mixed signals.
Consolidated Delivered Sales (Q4 2025) $571 million, growing 3% year-over-year, driven by acquisitions and new stores in the Retail segment and continued momentum in the core North America La-Z-Boy wholesale business.
Retail Segment Sales (Q4 2025) $247 million, up 8% year-over-year, primarily driven by new and acquired stores.
Wholesale Segment Sales (Q4 2025) $402 million, up 2% year-over-year, driven by growth in the core North America La-Z-Boy wholesale business.
Consolidated GAAP Operating Income (FY 2025) $136 million, with adjusted operating income at $161 million, a 1% increase year-over-year.
Consolidated GAAP Operating Margin (FY 2025) 6.4%, with adjusted operating margin at 7.6%, down 20 basis points year-over-year.
GAAP Diluted EPS (FY 2025) $2.35, with adjusted diluted EPS at $2.92, down from $2.98 in FY 2024.
Operating Cash Flow (FY 2025) $187 million, up 18% year-over-year.
Cash Returned to Shareholders (FY 2025) $113 million, up 32% year-over-year, including $35 million in dividends.
Effective Tax Rate (FY 2025) 31.4%, up from 24.8% in FY 2024, primarily due to a one-time tax effect of a nondeductible goodwill impairment charge.
Cash Position (End of FY 2025) $328 million in cash and no external debt.
Capital Expenditures (FY 2025) $74 million, primarily related to new stores and remodels.
Joybird Sales (Q4 2025) $36 million, down 2% year-over-year, with adjusted operating margin slightly positive.
New Store Openings: Opened 11 new company-owned La-Z-Boy Furniture Galleries stores, the most in over 2 decades.
Joybird Store Openings: Opened 13th Joybird store in Costa Mesa, California, the first new location since November '23.
Retail Segment Growth: Retail segment sales grew 8% in Q4, driven by new stores and acquisitions.
Total Network Expansion: Total Furniture Galleries network ended the year with 366 stores, aiming to grow to over 400 stores.
Operating Cash Flow: Generated $187 million in operating cash flow for the year, up 18% versus prior year.
Distribution Network Redesign: Kicked off a multiyear project to redesign distribution network and home delivery program.
Century Vision Strategy: Continued execution of Century Vision strategy, targeting double-digit operating margins and sales growth double the market.
Brand Identity Refresh: Launching a new brand identity this summer to make the brand more relevant for today's consumers.
Economic and Industry Volatility: Continued economic and industry volatility is expected to challenge consumer sentiment and impact industry traffic, particularly due to high mortgage rates.
Supply Chain Challenges: The company faced a significant supply chain challenge when its upholstery manufacturing facility in Siloam Springs, Arkansas, suffered damage from a storm, requiring a complete rebuild.
Competitive Pressures: The company noted mixed industry data, with competitors experiencing flat to mid-teen declines in same-store sales, indicating competitive pressures in the market.
Regulatory Issues: The company is monitoring the evolving global trade situation, including tariffs and compliance with USMCA, which could impact costs and sourcing strategies.
Customer Transition Impact: A significant customer transition in the international wholesale business has negatively impacted margins and triggered an impairment of goodwill related to the U.K. business.
Macroeconomic Factors: Rising macroeconomic uncertainty is affecting consumer behavior, particularly for the Joybird brand, which has seen a significant decline in written sales.
Investment Risks: The company is investing in a multiyear project to redesign its distribution network, which carries risks associated with execution and potential disruptions.
Century Vision Strategy: La-Z-Boy is executing its Century Vision strategy, aiming for top line growth at a pace double the market and delivering consistent double-digit operating margins over the long term.
Expansion of Retail Network: The company-owned Retail segment surpassed 200 stores, with plans to grow the total network to over 400 stores.
Supply Chain Investment: A multiyear project to redesign the distribution network and home delivery program is underway to enhance agility and efficiency.
Joybird Brand Optimization: Plans to open 3 to 4 new Joybird stores in fiscal '26, focusing on driving sales growth and profitability.
Brand Identity Refresh: A new brand identity will be launched this summer to make La-Z-Boy more relevant to today's consumers.
Fiscal 2026 Sales Guidance: Expected sales for Q1 2026 in the range of $490 million to $510 million.
Adjusted Operating Margin Guidance: Expected adjusted operating margin for Q1 2026 to be in the range of 5.5% to 7%.
Capital Expenditures Guidance: Expected capital expenditures for fiscal 2026 to be in the range of $90 million to $100 million.
Effective Tax Rate Guidance: Expected effective tax rate for fiscal 2026 to be in the range of 26% to 27%.
Long-term Capital Allocation: Targeting a capital allocation of 50% reinvested into the business and 50% returned to shareholders.
Dividends Returned to Shareholders: $35 million paid in dividends during fiscal 2025, which represents a 10% increase for the fourth consecutive year.
Share Repurchase: Repurchased 2 million shares during fiscal 2025, with 3.7 million shares remaining on the existing share repurchase authorization.
Total Return to Shareholders: Returned $113 million to shareholders through dividends and share repurchases, up 32% versus the prior year.
The earnings call reveals a mixed sentiment. Basic financial performance shows stable EPS but declining margins. Product development is positive with new stores and partnerships, but offset by friction costs. Market strategy is cautious, focusing on existing partners and prudent expansion. Expenses are managed well, with no debt and cash reserves. Shareholder returns are positive with dividend increases. However, the Q&A highlights uncertainties in demand trends and vague management responses. The stock's small market cap suggests potential volatility, but overall, the sentiment is neutral due to balanced positive and negative factors.
The earnings call presents a mixed picture. Basic financial performance shows slight declines, and Joybird's losses are concerning. However, strong cash reserves and no debt are positives. The market strategy involves expansion and investment, yet short-term margin pressure is expected due to new stores and supply chain rework. Shareholder return plans are balanced, but no new repurchase or dividend hikes were announced. The Q&A highlights uncertainties in consumer demand and non-core business performance. Overall, the sentiment is neutral, with no strong catalysts for significant stock price movement.
The earnings call presents a mixed outlook. While there are positive elements like increased shareholder returns and a solid cash position, there are also concerns. Declines in same-store sales and macroeconomic uncertainties negatively impact sentiment. The Q&A reveals management's uncertainty about future pricing and tariff impacts, which could worry investors. The overall financial performance shows modest growth but is offset by competitive pressures and weak margins. Given the market cap, the stock is likely to see a neutral movement in response to these mixed signals.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
