by Consolidated FY 2023 sales total $2.349 billion, down slightly from the prior fiscal year
MONROE, Mich. — La-Z-Boy reported a drop in quarterly sales and net income for its fiscal fourth quarter and full 2023 fiscal year ended April 29.
Consolidated sales in the fourth quarter fell 18% to $561.3 million, from $684.6 million the same period last year. The decline would have been 12% adjusted for a 53rd week for the fiscal year 2022, the company noted.
For the full year, the company had consolidated sales of $2.349 billion, down .3% from $2.356 billion the year before. Full-year sales would have been up 2% factoring in the additional week in 2022, the company said.
Net income for the quarter was $34.6 million, or 79 cents per share for the quarter, compared to $57.6 million, or $1.33 per share for the same period last year. For the full year, the company had net income of $151.9 million, or $3.49 per share, compared to $152.3 million, or $3.41 per share compared to the prior fiscal year.
Fourth quarter sales in the retail segment rose 4.1% to $242.7 million, from $233.1 million. For the full year, they rose 22.1% to $982 million, from $804.4 million.
During the quarter, the company said that total written sales rose 4% and that same-store sales were flat “as strong store execution mitigated lower consumer traffic.”
Operating income in the retail segment was $37.7 million, compared to $41 million the same period last year, down 8.1%. For the full year, operating income in the retail segment was $161.6 million, compared to $109.5 million last year up 47.6%.
In the wholesale segment quarterly sales totaled $394.6 million, down 23% from the $512.9 million reported the same period last year. For the full year, wholesale sales totaled $1.7 billion, down 11.4% from the $1.8 billion reported the prior fiscal year.
Quarterly operating income in the wholesale segment was $33.7 million, down from $44.9 million the same period, a 25% decrease. For the full year, it was $115.2 million, compared to $134 million the prior year, down 14%.
The quarterly decline in wholesale sales was primarily driven by a decline in delivered volume “as the backlog returned to pre-pandemic levels, partially offset by pricing and favorable channel and product mix.”
The company said that delivered sales in its Joybird e-commerce segment fell 31% to $37 million, while written sales declined 24%, “reflecting slowing e-commerce trends and industry demand challenges.”
Other highlights of the report included the following developments:
+ The company ended the fiscal year with $347 million in cash and no external debt.
+ It generated $205 million in cash from operating activities, which includes $78 million in the fourth quarter compared to $79 million for the full 2022 fiscal year and $34 million in the prior year’s fourth quarter.
+ The company also invested $69 million in capital expenditures, which the company said was largely related to new stores and remodels in its La-Z-Boy Furniture Galleries program, as well as Joybird store projects and upgrades at its manufacturing and distribution facilities.
+ It also said it returned $35 million to shareholders, including $30 million in dividends and $5 million in share repurchases.
Company President and CEO Melinda Whittington said, “I would like to congratulate and thank our entire organization for delivering another strong year, with record retail segment sales and operating profit, and record consolidated diluted EPS. We achieved these results through disciplined supply chain investments and solid execution in our company owned retail stores, reflecting the strength of our vertically integrated Retail and Wholesale model. We are pleased with our strong finish in the fourth quarter, where we were able to maintain roughly flat written same-store sales despite the declining macro environment.”
She added that the company’s results resulted from “our strong portfolio of iconic brands, collaboration and leadership of our talented employees, and execution of our value proposition — comfortable custom furniture with quick delivery — as our backlog has returned to more normalized historical levels. Our playbook is working, with our retail penetration increasing through new store growth and independent Furniture Galleries® store acquisitions. We are confident in our ability to advance our business in an uncertain macro environment with our strong debt free balance sheet allowing us to invest in our Century Vision strategy to drive future growth. The foundation is set through Century Vision to expand brand reach and we continue to target sales growth exceeding the industry growth rate and double-digit operating margins over the long term. We look forward to executing this business strategy to create long-term shareholder value.”
