La-Z-Boy’s EPS of $0.915 exceeded estimates, showcasing strong financial performance and operational efficiency.
The company reported revenue of approximately $867 million, significantly surpassing estimated revenues.
Strategic growth initiatives led to a 22% increase in consolidated delivered sales compared to the same quarter in 2019.
La-Z-Boy Incorporated (NYSE:LZB), a prominent player in the residential furniture manufacturing and retail sector, recently reported its earnings for the fourth quarter of the fiscal year 2024. The company’s earnings per share (EPS) of $0.915 exceeded the estimated EPS of $0.68, showcasing a strong financial performance. Additionally, La-Z-Boy generated revenue of approximately $867 million, significantly surpassing the estimated revenue of about $516.44 million. This performance not only highlights La-Z-Boy’s robust financial health but also its operational efficiency during the period.
The company’s ability to outperform Zacks Consensus Estimates, with quarterly earnings of $0.95 per share, underscores its resilience and market performance. Despite a slight decrease from the earnings of $0.99 per share reported in the same quarter the previous year, the earnings surprise of 39.71% for this quarter marks a significant positive deviation from expectations. This is particularly noteworthy considering the previous quarter’s earnings of $0.67 per share fell short of the anticipated $0.75 per share, resulting in a -10.67% earnings surprise.
La-Z-Boy’s revenue for the quarter ending April 2024 was $553.54 million, exceeding the Zacks Consensus Estimate by 6.70%. Although this represents a slight decrease from the $561.29 million reported in the same period last year, La-Z-Boy has consistently beaten consensus revenue estimates in three of the last four quarters. This trend demonstrates the company’s ability to maintain revenue growth amidst challenges in the furniture industry, which has been impacted by a largely stagnant housing market.
The company’s strategic growth initiatives are evident in its operational achievements. For the fiscal 2024 fourth quarter, La-Z-Boy achieved consolidated delivered sales of $554 million, a significant 22% increase compared to the same quarter in the pre-pandemic year of 2019. Additionally, the company expanded its La-Z-Boy Furniture Galleries network by three stores, including the acquisition of two independent stores. These moves signal confidence in its business strategy and future growth prospects.
La-Z-Boy’s financial metrics further underscore its growth and operational efficiency. With consolidated delivered sales of $2.05 billion for the full year and a robust $158 million in operating cash flow, the company demonstrates a strong balance sheet with $341 million in cash and no external debt. Moreover, La-Z-Boy’s commitment to shareholder value is highlighted by its return of $85 million through share repurchases and dividends, along with a 10% increase in its prior quarterly dividend to $0.20 in the third quarter. These results position La-Z-Boy for continued success in the competitive furniture manufacturing and retail markets.
