MONROE, MI – La-Z-Boy Incorporated (NYSE: NYSE:), a prominent player in the residential furniture market, reported a strong finish to its 2024 fiscal year, with fourth-quarter earnings and revenue exceeding analysts' expectations. The company's shares rose by 10% after this announcement.
For the fourth quarter, La-Z-Boy reported adjusted earnings per share (EPS) of $0.95, significantly above the analyst consensus of $0.70. Revenue for the quarter came in at $554 million, beating consensus estimates of $516.89 million, indicating a 22% increase from the pre-pandemic fourth quarter of fiscal 2019. However, this figure represents a slight 1% decrease compared to the same quarter last year. the past. This is what the company attributes to the accumulated deliveries during the pandemic the previous year.
President and CEO Melinda D. Whittington expressed satisfaction with the company's strong financial performance at the end of the fiscal year, highlighting improved wholesale unit volumes and recovery from weather-related disruptions earlier in the year. Despite industry challenges such as high interest rates and low housing turnover, Whittington remains confident in La-Z-Boy's ability to outperform the market and gain share over the long term.
Looking to the first quarter of fiscal 2025, La-Z-Boy expects delivered sales to be between $475 million and $495 million, with the midpoint of this guidance comfortably above the analyst consensus of $476 million. The company's non-GAAP operating margin is expected to be between 6-7%. CFO Bob Lucien emphasized that although the industry may face a decline of up to 5%, La-Z-Boy is poised to continue to outperform the industry and achieve modest sales growth year over year.
Investors responded favorably to the company's forward-looking statements and Century Vision strategy, which includes expanding the La-Z-Boy Furniture Galleries® store network. The company plans to open 12 to 15 new stores, especially in the second half of the financial year, as part of its growth strategy.
La-Z-Boy's strong financial position, with $341 million in cash and no external debt, coupled with its strategic initiatives, positions the company well to navigate a volatile market and continue its growth trajectory and market share gains.
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