MONROE, Mich. – La-Z-Boy Incorporated (NYSE: NYSE:), a prominent player in the residential furniture market, has reported a robust finish to its fiscal year 2024, with fourth-quarter earnings and revenue surpassing analyst expectations. The company’s stock surged 10% following the announcement.
For the fourth quarter, La-Z-Boy posted adjusted earnings per share (EPS) of $0.95, notably higher than the analyst consensus of $0.70. Revenue for the quarter reached $554 million, exceeding the consensus estimate of $516.89 million and demonstrating a 22% increase from the pre-pandemic fourth quarter of Fiscal 2019. However, this figure represents a slight 1% decline compared to the same quarter last year, which the company attributes to the previous year’s pandemic backlog deliveries.
President and CEO Melinda D. Whittington expressed satisfaction with the company’s strong fiscal year-end performance, highlighting improved wholesale unit volumes and recovery from weather-related disruptions earlier in the year. Despite industry challenges such as high-interest rates and low housing turnover, Whittington remains confident in La-Z-Boy’s ability to outperform the market and gain share over the long term.
Looking ahead to the first quarter of Fiscal 2025, La-Z-Boy anticipates delivered sales to be in the range of $475-495 million, with the midpoint of this guidance comfortably above the analyst consensus of $476 million. The company’s Non-GAAP operating margin is expected to be between 6-7%. Chief Financial Officer Bob Lucian emphasized that while the industry may face a downturn of up to 5%, La-Z-Boy is poised to continue outperforming the industry and achieve modest sales growth year-over-year.
Investors have responded positively to the company’s forward-looking statements and its Century Vision strategy, which includes the expansion of the La-Z-Boy Furniture Galleries® store network. The company plans to open 12 to 15 new stores, primarily in the second half of the fiscal year, as part of its growth strategy.
La-Z-Boy’s solid financial position, with $341 million in cash and no external debt, coupled with its strategic initiatives, positions the company well to navigate the volatile market and continue its trajectory of growth and market share gains.
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