La-Z-Boy Incorporated (NYSE:LZB) stock fell 2.18% (As on August 23, 11:38:15 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. Written same-store sales for the Retail segment grew 2% mainly driven by strong store execution, including improved conversion and an increase in design sales despite lower consumer traffic. Written sales for the entire La-Z-Boy Furniture Galleries network also increased by 2%. Non-GAAP operating margin decreased 190 basis points to 7.0%. Cash generated from operating activities was $26 million.

Moreover, Retail Segment delivered sales for the company owned Furniture Galleries^® Retail segment decreased 12% to $208 million, versus last year’s delivery of pandemic related backlog. Total written sales for the Retail segment increased 8% driven by positive same-store sales, new stores, and acquired stores. Wholesale Segment Sales decreased 25% to $333 million driven primarily by a decline in delivered volume versus the year ago period, which benefited from an elevated backlog, partially offset by favorable product mix. Joybird written sales declined 17% and delivered sales decreased 17% to $36 million, reflecting slowing e-commerce trends and industry demand challenges

LZB in the first quarter of FY 24 has reported the adjusted earnings per share of 62 cents, beating the analysts’ estimates for the adjusted earnings per share of 54 cents. The company had reported 20 percent drop in the adjusted revenue to $482 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $476.2 million. This is largely driven by lower delivered unit volume versus last year’s backlog driven sales, partially offset by favorable product mix. The company ended the first quarter with $340 million in cash and no external debt and generated $26 million in cash from operating activities versus $33 million in the first quarter of last fiscal year.

Looking forward, the company expects consumer trends to remain soft and sales trends remain challenged against last year, which benefited from an elevated pandemic backlog. Considering these trends, and historical seasonality, the company expects sales in the second quarter of fiscal 2024 to be slightly higher than the first quarter. Further, the company expects Q2 operating margin to be similar to the first quarter, as the company increase marketing investment in support of the new “Long Live the Lazy” campaign, which started in August. For Q2/24, the company expects revenue in the range of $490-$510M and operating margin in the range of 6.5%-7.5%.