La-Z-Boy Inc (NYSE:LZB) stock rose 0.39% (As on June 18, 11:33:56 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY25. Throughout the year, La-Z-Boy experienced sales growth across all segments, marking steady quarterly top-line increases despite facing challenging housing market conditions and macroeconomic uncertainties. In the retail sector, La-Z-Boy has expanded its direct-to-consumer business and taken full control of the consumer experience, utilizing valuable insights. The company marked a milestone by growing its company-owned stores to over 200, nearly doubling its count over the past decade. As of now, La-Z-Boy owns 55% of the total network, amplified by opening six new stores and acquiring existing independent galleries. Retail segment delivered sales increased 8% and Wholesale segment delivered sales increased 2%. In the wholesale segment, La-Z-Boy has broadened its brand’s reach through strategic partnerships, thereby enhancing consumer access. The company’s North American wholesale business has achieved consistent sales growth and margin improvements over the last four quarters of fiscal 2025, reinforced by initiatives like the multi-year redesign of distribution and delivery processes. The company has generated $62 million in operating cash flow for the quarter, up 17% versus prior year.
Moreover, Joybird written sales decreased 21% as recent economic and industry trends disproportionately impacted the Joybird online consumer. Delivered sales decreased 2% to $36 million as positive growth within existing stores was offset by declines in the online business. Joybird adjusted operating margin was positive in the fourth quarter, relatively flat versus prior year. The company has ended the quarter with $328 million in cash and no external debt.
LZB in the fourth quarter of FY25 has reported the adjusted earnings per share of 92 cents, missing the analysts’ estimates for the adjusted earnings per share by a penny. The company had reported the adjusted revenue growth of 3 percent to $570.87 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $557.44 million. The company has delivered adjusted operating margin of 9.4%, flat versus the year ago period.
Looking ahead to the current quarter, “uncertainty in the broader economic climate and considerable volatility during the quarter” leads the company to plan prudently to navigate the year ahead.
As such, La-Z-Boy expects “modest growth in a challenged consumer environment” with sales anticipated to be down 1.2% to up 2.8%, representing a range of $490M to $510M. This compares to estimates of $507.9M. Adjusted operating margin is expected to be within a range of $5.5% to 7%, versus 6.5% in the same quarter last year.