La-Z-Boy Incorporated has reported strong fourth quarter and full-year results for fiscal year 2025. In the fourth quarter, consolidated delivered sales increased by 3% compared to the prior year, reaching $571 million. The retail segment delivered sales grew by 8%, with the company-owned La-Z-Boy Furniture Galleries network expanding by six stores, bringing the total to 203 company-owned stores, representing 55% of the total network. The wholesale segment also saw a 2% increase in delivered sales. The GAAP operating margin for the quarter was reported at 5.2%, and the adjusted operating margin was 9.4%, remaining flat compared to the previous year.
For the full fiscal year 2025, consolidated delivered sales reached $2.1 billion, marking a 3% increase from the prior year. The retail segment delivered sales increased by 5%, and the wholesale segment saw a 2% increase in delivered sales. Joybird delivered sales also increased by 5%. The GAAP operating margin for the year was reported at 6.4%, while the adjusted operating margin was 7.6%, down 20 basis points from the previous year.
In terms of earnings per share, the GAAP diluted EPS for the fourth quarter was $0.36, and the adjusted diluted EPS was $0.92. For the full fiscal year, the GAAP diluted EPS was $2.35, while the adjusted diluted EPS was $2.92. Both GAAP and adjusted diluted EPS for fiscal 2025 included a $0.10 impact from unfavorable foreign tax discrete items.
The company reported generating $62 million in operating cash flow for the fourth quarter, representing a 17% increase compared to the prior year. For the full fiscal year, La-Z-Boy generated $187 million in operating cash flow, showing an 18% increase from the previous year.
Additionally, the company returned $113 million to shareholders through share repurchases and dividends, marking an increase of over 30% compared to the prior year.
Despite challenges in the housing market and increased volatility in the global economy, La-Z-Boy's CEO, Melinda D. Whittington, expressed confidence in the company's ability to outperform its peers and deliver strong financial performance. She highlighted the company's strategies and initiatives across its businesses, emphasizing the growth in the company-owned store footprint and the successful expansion of the brand reach in the wholesale segment.
Looking ahead, the company anticipates continued industry volatility and plans to navigate the year prudently. It expects fiscal first-quarter sales to be in the range of $490-$510 million, reflecting modest growth in a challenging consumer environment.
In terms of key financial metrics, the company's GAAP operating income for the quarter ended April 26, 2025, was $29.5 million, representing a 41% decrease from the prior year. The adjusted operating income for the same period was $53.6 million, marking a 3% increase from the prior year. For the full fiscal year, the GAAP operating income was $135.8 million, down 10% from the previous year, while the adjusted operating income was $160.8 million, showing a 1% increase from the prior year.
The company reported a decline in GAAP net income attributable to La-Z-Boy Incorporated for the fourth quarter, with a 62% decrease compared to the prior year. The adjusted net income attributable to La-Z-Boy Incorporated also decreased by 6% for the same period. For the full fiscal year, the adjusted net income attributable to La-Z-Boy Incorporated decreased by 4% compared to the previous year.
La-Z-Boy ended the quarter with $328 million in cash and no external debt, reflecting a strong balance sheet position.
The company will hold a conference call with the investment community on June 18, 2025, to discuss these financial results.
Today the company's shares have moved -0.41% to a price of $38.76. Check out the company's full 8-K submission here.
