La-Z-Boy Incorporated (NYSE:LZB) stock fell 0.89% (As on June 21, 11:28:16 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Consolidated non-GAAP operating margin was 9.8% versus 9.4%, Improved due to strong Retail performance. The company ended the fiscal year with $347 million in cash and no external debt. The company generated $205 million in cash from operating activities, including $78 million in the fourth quarter, versus $79 million in full fiscal year 2022 and $34 million in last year’s fourth quarter. The company invested $69 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries^® (new stores and remodels), Joybird store projects, and upgrades at our manufacturing and distribution facilities. The company has returned $35 million to shareholders, including $30 million in dividends and $5 million in share repurchases.

LZB in the fourth quarter of FY 23 has reported the adjusted earnings per share of 99 cents, beating the analysts’ estimates for the adjusted earnings per share of 73 cents, according to the Zacks Consensus Estimate. The company had reported 12 percent fall in the adjusted revenue to $561.29 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 5.15%. This is with the realization of pricing and surcharge actions and the positive effects of a favorable product and channel mix more than offset by lower delivered unit volume versus last year’s backlog driven sales.

Moreover, Retail Segment delivered sales increased 4% (+12% adjusted for the 53rd week in fiscal 2022) to $243 million; delivered same-store sales were relatively flat. Total written sales for the Retail segment (company owned La-Z-Boy Furniture Galleries^® stores) increased 4%. Written same-store sales for the Retail segment were essentially flat as strong store execution mitigated lower consumer traffic. Wholesale Segment sales decreased 23% (-17% adjusted for the 53rd week in fiscal 2022) to $395 million driven primarily by a decline in delivered volume as the backlog returned to pre-pandemic levels. Joybird delivered sales decreased 31% (-25% adjusted for the 53rd week in fiscal 2022) to $37 million, and written sales declined 24%, reflecting slowing e-commerce trends and industry demand challenges

For the first quarter of fiscal 2024, which is generally the lowest sales quarter in the fiscal year, the company expects sales to be in the range of $470 to $490 million and operating margin to be in the range of 6.5% to 7.5%.