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La-Z-Boy Incorporated has demonstrated robust financial performance for the fiscal year ending April 27, 2024. Despite challenging industry conditions, the company reported consolidated delivered sales of $2.05 billion, reflecting a strong execution of its strategic initiatives. The gross margin expanded on both GAAP and Non-GAAP bases across all segments, with GAAP diluted EPS at $2.83 and Non-GAAP diluted EPS at $2.98. Operating cash flow for the year was substantial at $158 million, showcasing the company's solid financial health, further emphasized by a strong balance sheet with $341 million in cash and no external debt.
The company made significant strides in its retail expansion, adding six new company-owned stores and acquiring 11 independent La-Z-Boy Furniture Galleries® stores. This expansion has resulted in retail (company-owned) stores representing over half of the total La-Z-Boy Furniture Galleries® network for the first time in company history. Additionally, La-Z-Boy returned $85 million to shareholders through share repurchases and dividends, underlining its commitment to shareholder value.
Looking ahead, La-Z-Boy expects industry conditions to remain volatile due to persistent higher interest rates and low housing turnover. Despite these challenges, the company projects to outperform the industry, with modest sales growth anticipated in Fiscal 2025. This growth will be driven by the continued execution of the Century Vision strategy, which includes opening 12 to 15 new La-Z-Boy Furniture Galleries® stores primarily in the second half of the fiscal year. For the first quarter of Fiscal 2025, the company forecasts delivered sales between $475 million and $495 million and a Non-GAAP operating margin of 6-7%.
Overall, La-Z-Boy's strategic focus on expanding its retail footprint and enhancing its operational efficiency positions it well to navigate industry headwinds and achieve sustained growth in the upcoming fiscal year.
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