La-Z-Boy Inc (NYSE:LZB), a global leader in the retail and manufacture of residential furniture, stock fell 2.75% (As on August 21, 11:23:36 AM UTC-4, Source: Google Finance) after the company posted inline earnings for the first quarter of FY 25. Written sales remained steady, with first quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries) up 4% versus a year ago, and written same-store sales down 3% versus a year ago. Written same-store sales for the entire La-Z-Boy Furniture Galleries network also decreased 3% versus the year ago period. Trends were strongest around the Memorial Day holiday and softened towards the end of the quarter. Written sales results outperformed the broader furniture and home furnishings industry for May and June, which was also down 3% for the quarter.

Moreover, the company is pleased to return to delivered sales growth in the quarter, led by the Wholesale segment, which benefited from higher delivered volume supported by Century Vision’s channel expansion strategy. While the Retail business currently continues to wrestle with depressed traffic trends experienced across the industry. Conversion rates and design average ticket sales both improved again year-over-year. With the Century Vision strategy, the company is actively investing in growing the core Retail segment through strengthening in-store execution, opening new stores, and acquiring independent La-Z-Boy Furniture Galleries stores

LZB in the first quarter of FY 25 has reported the adjusted earnings per share of 62 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 62 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3 percent to $495.53 million in the second quarter of FY 24, beating the analysts’ estimates for revenue by 1.94%. Consolidated Non-GAAP operating margin decreased 40 basis points to 6.6% versus 7.0%, due to reduced fixed cost leverage in Retail, partially offset by gross margin expansion. The company ended the quarter with $342 million in cash and no external debt and generated $52 million in cash from operating activities versus $26 million in last year’s first quarter.

Looking forward, the industry will remain under pressure in the near term as the market contends with still high interest rates, muted housing turnover, and an uncertain economic and geopolitical environment. The company expects fiscal second quarter sales to be in the range of $495-515 million and Non-GAAP operating margin to be in the range of 6-7%.