Financial News Release

02/21/23

La-Z-Boy Reports Strong Fiscal 2023 Third-Quarter

Written Same-Store Sales Increased 3% for Retail Segment

MONROE, Mich., Feb. 21, 2023 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential furniture, today reported excellent third-quarter results for the period ending January 28, 2023.

Fiscal 2023 third-quarter highlights versus prior-year third quarter:

  • Consolidated sales increased to $573 million
     
  • GAAP operating income increased by 8%
     
    • Non-GAAP operating income increased by 34%
    • GAAP operating margin increased 60 basis points to 7.5%
    • Non-GAAP operating margin increased 230 basis points to 9.3%
  • Retail segment sales increased 27% to $251 million
    • Retail segment GAAP and non-GAAP operating income increased 83% to a record $44 million
    • Retail segment GAAP and non-GAAP operating margin increased 540 basis points to a record 17.6%
       
  • Written same-store sales for the Retail segment increased 3%
     
  • GAAP diluted EPS increased by 14%
     
    • Non-GAAP diluted EPS increased by 40%
  • Cash generated from operating activities more than tripled to $96 million

Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy Incorporated, said, "We again delivered excellent results driven by productivity gains throughout our supply chain and superb performance in our company-owned Retail segment. During the quarter, we worked down the majority of our excess backlog, getting close to normal lead times, and continued to invest in marketing to increase awareness and consideration of the La-Z-Boy brand. I am particularly pleased with our positive written sales trends in our Retail stores, driven by strong execution of our value proposition — comfortable custom furniture with quick delivery."

Whittington added, "Across La-Z-Boy, we are capitalizing on and investing in our brand heritage of comfort. We're honing our messaging, investing in targeted marketing, sharpening price points, and ensuring strong execution. As we move through this uncertain economic environment, we will continue to employ agility, a consumer-first focus, and our strong financial position to make smart investments to drive capability and brand reach. I am confident we will emerge stronger and capture increased market share."

Key Results:

    Quarter Ended    
(Unaudited, amounts in thousands, except per share data)   1/28/2023   1/22/2022   Change
Sales   $ 572,723     $ 571,573     0.2 %
             
GAAP operating income     42,840       39,487     8 %
Non-GAAP operating income      53,178       39,745     34 %
             
GAAP operating margin     7.5 %     6.9 %   60 bps
Non-GAAP operating margin     9.3 %     7.0 %   230 bps
             
GAAP net income attributable to La-Z-Boy Incorporated     31,726       28,467     11 %
Non-GAAP net income attributable to La-Z-Boy Incorporated     39,234       28,741     37 %
             
Diluted weighted average common shares     43,137       43,968      
             
GAAP diluted earnings per share   $ 0.74     $ 0.65     14 %
Non-GAAP diluted earnings per share   $ 0.91     $ 0.65     40 %

Liquidity Measures:

    Nine Months Ended       Nine Months Ended
(Unaudited, amounts in thousands)   1/28/2023   1/22/2022   (Unaudited, amounts in thousands)   1/28/2023   1/22/2022
Free Cash Flow           Cash Returns to Shareholders        
Operating cash flow   $ 127,052     $ 45,192     Share repurchases   $ 5,004   $ 75,646
Capital expenditures     (57,439 )     (58,585 )   Dividends     22,027     20,621
Free cash flow   $ 69,613     $ (13,393 )   Cash returns to shareholders   $ 27,031   $ 96,267

 

(Unaudited, amounts in thousands)   1/28/2023   1/22/2022
Cash and cash equivalents   $ 280,763   $ 236,712
Restricted cash     3,282     3,266
Total cash, cash equivalents and restricted cash   $ 284,045   $ 239,978

FY23 Q3 Results vs. FY22 Q3:

Consolidated Results:

  • Consolidated sales in the third quarter of fiscal 2023 increased to $573 million, with the realization of pricing and surcharge actions and the positive effects of a favorable product and channel mix offsetting lower delivered unit volume
  • Consolidated GAAP operating margin was 7.5% versus 6.9%
  • Consolidated non-GAAP(1) operating margin was 9.3% versus 7.0%
    • Improved operating margin was driven primarily by strong Retail performance
  • GAAP diluted EPS increased 14% to $0.74 from $0.65; non-GAAP(1) diluted EPS increased 40% to $0.91 from $0.65

Retail Segment:

  • Sales:
    • Delivered sales increased 27% to $251 million; delivered same-store sales increased 23%, as we improved service to consumers and moved closer to pre-pandemic lead times
    • Total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 8%
      • Written same-store sales for the Retail segment increased 3% and were 12% higher than pre-pandemic levels (FY20 Q3)
  • Operating Performance:
    • Non-GAAP(1) operating margin and operating income increased to all-time records of 17.6% and $44 million, respectively, up 540 basis points and 83%, respectively, primarily driven by higher delivered sales relative to selling expenses and fixed costs

Wholesale Segment:

  • Sales:
    • Decreased 4% to $408 million driven primarily by a decline in delivered volume, partially offset by pricing and favorable channel and product mix
  • Operating Margin:
    • Non-GAAP(1) operating margin improved to 6.6%; pricing and surcharge actions along with declining freight costs were mostly offset by an increase in marketing spend to pre-pandemic levels

Corporate & Other:

  • Joybird delivered sales decreased 35% to $29 million, and written sales declined 21%, reflecting both slowing e-commerce trends and a reduction in marketing spend to align with consumer behavior and focus on efficient return on advertising spending
  • Joybird posted a loss for the period, primarily reflecting lower delivered volume due to the written sales decline in FY23 Q2

Balance Sheet and Cash Flow as of FY23 Q3

  • Ended the quarter with $284 million in cash(2) and no external debt
  • Year to date, generated $127 million in cash from operating activities, including $96 million in the third quarter, versus $45 million in the prior-year nine-month period and $30 million in last year's third quarter
  • Year to date, spent $57 million on capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels) and Joybird store projects, and upgrades at our manufacturing and distribution facilities
  • Year to date, returned $27 million to shareholders, including $22 million in dividends and $5 million in share repurchases

Dividend

On February 21, 2023, the Board of Directors declared a quarterly cash dividend of $0.1815 per share on the common stock of the company. The dividend will be paid on March 15, 2023, to shareholders of record on March 7, 2023.

Outlook

Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, said, "As we have essentially worked down our backlog to pre-pandemic levels, we anticipate that Q4 delivered sales will be at levels consistent with what we write, consistent with historical seasonality, and almost 20% above pre-pandemic. We estimate delivered sales for the fiscal 2023 fourth quarter to be in a range of $525 million to $545 million, and consolidated non-GAAP operating margin(3) to be in a range of 7% to 9%."

Last year's fourth quarter included 14 weeks versus this year's fourth quarter which will include a normal 13 weeks. Last year's extra week contributed approximately $49 million in sales based on the average weekly sales for the quarter.

_____
(1) Non-GAAP amounts for the third quarter of fiscal 2023 exclude:

  • a $10.1 million pre-tax, or $0.17 per diluted share charge related to the closure of the Torreón, MX facility, primarily reflecting the impairment of various assets
  • purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, with $0.3 million included in operating income and a de minimis amount included in interest expense

Non-GAAP amounts for the third quarter of fiscal 2022 exclude:

  • purchase accounting charges related to acquisitions completed in prior periods totaling $0.4 million pre-tax, or less than $0.01 per diluted share, with $0.3 million included in operating income and $0.1 million included in interest expense

Please refer to the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” for detailed information on calculating the Non-GAAP financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

(2) Cash includes cash, cash equivalents and restricted cash

(3) This reference to Non-GAAP operating margin for a future period is a Non-GAAP financial measure. Non-GAAP operating margin may exclude items such as pre-tax purchase accounting charges and pre-tax business realignment charges. These and other not presently determinable items could have a material impact on the determination of operating margin on a GAAP basis and due to the probable variability and limited visibility of excluded items, therefore, we have not provided a reconciliation of Non-GAAP operating margin for future periods in this press release.

Conference Call

La-Z-Boy will hold a conference call with the investment community on Wednesday, February 22, 2023, at 8:30 a.m. Eastern time. The toll-free dial-in number is 888.506.0062; international callers may use 973.528.0011. Enter Participant Access Code 858794.

The call will be webcast live, with corresponding slides, and archived on the Internet. It will be available at https://lazboy.gcs-web.com/. A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at 877.481.4010 and to international callers at 919.882.2331. Enter Replay Passcode: 47547. The webcast replay will be available for one year.

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, business and industry and the effect of the coronavirus (“COVID”) pandemic on our business operations and financial results.

The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our fiscal 2022 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the "SEC"), available on the SEC's website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

Additional Information

This news release is just one part of La-Z-Boy’s financial disclosures and should be read in conjunction with other information filed with the SEC, which is available at: https://lazboy.gcs-web.com/financial-information/sec-filings. Investors and others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly investor conference calls may sign up at: https://lazboy.gcs-web.com/.  

Background Information

La-Z-Boy Incorporated is one of the world’s leading residential furniture producers, marketing furniture for every room of the home. The Wholesale segment includes England, La-Z-Boy, American Drew®, Hammary®, Kincaid® and the company's international wholesale and manufacturing businesses. The company-owned Retail segment includes 167 of the 346 La-Z-Boy Furniture Galleries® stores. Joybird is an e-commerce retailer and manufacturer of upholstered furniture.

The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 346 stand-alone La-Z-Boy Furniture Galleries® stores and 519 independent Comfort Studio® locations, in addition to in-store gallery programs for the company’s Kincaid and England operating units. Additional information is available at https://www.la-z-boy.com/.  

Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), this press release also includes Non-GAAP financial measures. Management uses these Non-GAAP financial measures when assessing our ongoing performance. This press release contains references to Non-GAAP operating income, Non-GAAP operating margin, and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share (and components thereof, including Non-GAAP income before income taxes and Non-GAAP net income attributable to La-Z-Boy Incorporated), which may exclude, as applicable, business realignment charges, Mexico optimization charges and purchase accounting charges. The business realignment charges include severance costs, asset impairment costs, and costs to relocate equipment and inventory related to organizational changes we undertook as a result of our response to COVID, including a reduction in the company's work force, temporary closure of certain manufacturing facilities and subsequent gains resulting from the sale of related assets. The Mexico optimization charges include asset impairment costs, severance costs, and employee relocation costs resulting from the closure of our Torreón manufacturing facility. The purchase accounting charges may include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, amortization of employee retention agreements, fair value adjustments of future cash payments recorded as interest expense, and adjustments to the fair value of contingent consideration. These Non-GAAP financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such Non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

Management believes that presenting certain Non-GAAP financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, business realignment charges and Mexico optimization charges are dependent on the timing, size, number and nature of the operations being moved or closed, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented, except for the non-tax deductible goodwill impairment charge and the adjustment to the fair value of contingent consideration which reflects the associated GAAP tax impact in the period presented.

 Contact: Kathy Liebmann                (734) 241-2438                                 kathy.liebmann@la-z-boy.com

 

 

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

    Quarter Ended   Nine Months Ended
(Unaudited, amounts in thousands, except per share data)   1/28/2023   1/22/2022   1/28/2023   1/22/2022
Sales   $ 572,723     $ 571,573     $ 1,788,146     $ 1,672,245  
Cost of sales     326,296       352,208       1,039,523       1,027,503  
Gross profit     246,427       219,365       748,623       644,742  
Selling, general and administrative expense     203,587       179,878       591,257       516,771  
Operatingincome      42,840       39,487       157,366       127,971  
Interest expense     (136 )     (160 )     (414 )     (713 )
Interest income     2,012       806       3,624       1,029  
Other income (expense), net     (1,062 )     (1,460 )     (834 )     (522 )
Income before income taxes     43,654       38,673       159,742       127,765  
Income tax expense     12,077       9,591       42,446       33,059  
Net income     31,577       29,082       117,296       94,706  
Net (income) loss attributable to noncontrolling interests     149       (615 )     (1,005 )     (2,157 )
Net income attributable to La-Z-Boy Incorporated   $ 31,726     $ 28,467     $ 116,291     $ 92,549  
                 
Basic weighted average common shares     43,137       43,701       43,111       44,342  
Basic net income attributable to La-Z-Boy Incorporated per share   $ 0.74     $ 0.65     $ 2.70     $ 2.09  
                 
Diluted weighted average common shares     43,137       43,968       43,111       44,640  
Diluted net income attributable to La-Z-Boy Incorporated per share   $ 0.74     $ 0.65     $ 2.70     $ 2.07  
                                 

LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands, except par value)   1/28/2023   4/30/2022
Current assets        
Cash and equivalents   $ 280,763     $ 245,589  
Restricted cash     3,282       3,267  
Receivables, net of allowance of $4,228 at 1/28/2023 and $3,406 at 4/30/2022     137,593       183,747  
Inventories, net     303,553       303,191  
Other current assets     123,803       215,982  
Total current assets     848,994       951,776  
Property, plant and equipment, net     267,606       253,144  
Goodwill     204,781       194,604  
Other intangible assets, net     39,180       33,971  
Deferred income taxes – long-term     11,199       10,632  
Right of use lease assets     399,807       405,755  
Other long-term assets, net     74,788       82,207  
Total assets   $ 1,846,355     $ 1,932,089  
         
Current liabilities        
Accounts payable   $ 86,882     $ 104,025  
Lease liabilities, short-term     77,142       75,271  
Accrued expenses and other current liabilities     345,360       496,393  
Total current liabilities     509,384       675,689  
Lease liabilities, long-term     350,144       354,843  
Other long-term liabilities     70,323       81,935  
Shareholders' equity        
Preferred shares – 5,000 authorized; none issued            
Common shares, $1.00 par value – 150,000 authorized; 43,140 outstanding at 1/28/23 and 43,089 outstanding at 4/30/22     43,140       43,089  
Capital in excess of par value     350,406       342,252  
Retained earnings     518,732       431,181  
Accumulated other comprehensive loss     (6,180 )     (5,797 )
Total La-Z-Boy Incorporated shareholders' equity     906,098       810,725  
Noncontrolling interests     10,406       8,897  
Total equity     916,504       819,622  
Total liabilities and equity   $ 1,846,355     $ 1,932,089  
                 

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

    Nine Months Ended
(Unaudited, amounts in thousands)   1/28/2023   1/22/2022
Cash flows from operating activities        
Net income   $ 117,296     $ 94,706  
Adjustments to reconcile net income to cash provided by operating activities        
(Gain)/loss on disposal and impairment of assets     6,161       (3,149 )
(Gain)/loss on sale of investments     155       (340 )
Provision for doubtful accounts     945       (1,070 )
Depreciation and amortization     29,357       27,146  
Amortization of right-of-use lease assets     57,548       53,949  
Lease impairment     1,347        
Equity-based compensation expense     8,456       8,887  
Change in deferred taxes     (2,629 )     214  
Change in receivables     42,474       (20,317 )
Change in inventories     4,560       (83,109 )
Change in other assets     16,478       (22,486 )
Change in payables     (10,624 )     23,690  
Change in lease liabilities     (58,651 )     (54,400 )
Change in other liabilities     (85,821 )     21,471  
Net cash provided by operating activities     127,052       45,192  
         
Cash flows from investing activities        
Proceeds from disposals of assets     121       3,999  
Capital expenditures     (57,439 )     (58,585 )
Purchases of investments     (6,970 )     (28,058 )
Proceeds from sales of investments     18,178       30,457  
Acquisitions     (11,855 )     (24,849 )
Net cash used for investing activities     (57,965 )     (77,036 )
         
Cash flows from financing activities        
Payments on debt and finance lease liabilities     (92 )     (91 )
Holdback payments for acquisition purchases     (5,000 )     (23,000 )
Stock issued for stock and employee benefit plans, net of shares withheld for taxes     (1,771 )     (1,670 )
Repurchases of common stock     (5,004 )     (75,646 )
Dividends paid to shareholders     (22,027 )     (20,621 )
Dividends paid to minority interest joint venture partners (1)           (1,260 )
Net cash used for financing activities     (33,894 )     (122,288 )
         
Effect of exchange rate changes on cash and equivalents     (4 )     (593 )
Change in cash, cash equivalents and restricted cash     35,189       (154,725 )
Cash, cash equivalents and restricted cash at beginning of period     248,856       394,703  
Cash, cash equivalents and restricted cash at end of period   $ 284,045     $ 239,978  
         
Supplemental disclosure of non-cash investing activities        
Capital expenditures included in payables   $ 2,828     $ 4,564  

(1) Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

LA-Z-BOY INCORPORATED
SEGMENT INFORMATION

    Quarter Ended   Nine Months Ended
(Unaudited, amounts in thousands)   1/28/2023   1/22/2022   1/28/2023   1/22/2022
Sales                
Wholesale segment:                
Sales to external customers   $ 291,170     $ 328,533     $ 934,511     $ 973,973  
Intersegment sales     116,433       94,748       361,141       281,899  
Wholesale segment sales     407,603       423,281       1,295,652       1,255,872  
                 
Retail segment sales     251,157       197,052       739,330       571,319  
                 
Corporate and Other:                
Sales to external customers     30,396       45,988       114,305       126,953  
Intersegment sales     3,114       3,991       11,572       11,673  
Corporate and Other sales     33,510       49,979       125,877       138,626  
                 
Eliminations     (119,547 )     (98,739 )     (372,713 )     (293,572 )
Consolidated sales   $ 572,723     $ 571,573     $ 1,788,146     $ 1,672,245  
                 
Operating Income (Loss)                
Wholesale segment   $ 16,940     $ 27,639     $ 81,558     $ 89,098  
Retail segment     44,203       24,102       123,855       68,502  
Corporate and Other     (18,303 )     (12,254 )     (48,047 )     (29,629 )
Consolidated operating income   $ 42,840     $ 39,487     $ 157,366     $ 127,971  
                                 

LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    Quarter Ended   Nine Months Ended
(Amounts in thousands, except per share data)   1/28/2023   1/22/2022   1/28/2023   1/22/2022
GAAP gross profit   $ 246,427     $ 219,365     $ 748,623     $ 644,742  
Purchase accounting charges - incremental expense upon the sale of inventory acquired at fair value                 132        
Business realignment charges                 609        
Mexico optimization charges     880             880        
Non-GAAP gross profit   $ 247,307     $ 219,365     $ 750,244     $ 644,742  
                 
GAAP SG&A   $ 203,587     $ 179,878     $ 591,257     $ 516,771  
Purchase accounting gain/(charges) - adjustment to the fair value of contingent consideration, amortization of intangible assets and retention agreements     (252 )     (258 )     46       (1,277 )
Business realignment gain                       3,277  
Mexico optimization charges     (9,206 )           (9,206 )      
Non-GAAP SG&A   $ 194,129     $ 179,620     $ 582,097     $ 518,771  
                 
GAAP operating income   $ 42,840     $ 39,487     $ 157,366     $ 127,971  
Purchase accounting charges     252       258       86       1,277  
Business realignment (gain)/charges                 609       (3,277 )
Mexico optimization charges     10,086             10,086        
Non-GAAP operating income   $ 53,178     $ 39,745     $ 168,147     $ 125,971  
                 
GAAP income before income taxes   $ 43,654     $ 38,673     $ 159,742     $ 127,765  
Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense     299       365       271       1,700  
Business realignment (gain)/charges                 609       (3,277 )
Mexico optimization charges     10,086             10,086        
Non-GAAP income before income taxes   $ 54,039     $ 39,038     $ 170,708     $ 126,188  
                 
GAAP net income attributable to La-Z-Boy Incorporated   $ 31,726     $ 28,467     $ 116,291     $ 92,549  
Purchase accounting charges recorded as part of gross profit, SG&A and interest expense     299       365       271       1,700  
Tax effect of purchase accounting     (83 )     (91 )     (286 )     (310 )
Business realignment (gain)/charges                 609       (3,277 )
Tax effect of business realignment                 (163 )     845  
Mexico optimization charges     10,086             10,086        
Tax effect of Mexico optimization charges     (2,794 )           (2,693 )      
Non-GAAP net income attributable to La-Z-Boy Incorporated   $ 39,234     $ 28,741     $ 124,115     $ 91,508  
                 
GAAP net income attributable to La-Z-Boy Incorporated per diluted share   $ 0.74     $ 0.65     $ 2.70     $ 2.07  
Purchase accounting charges, net of tax, per share                       0.04  
Business realignment (gain)/charges, net of tax, per share                 0.01       (0.06 )
Mexico optimization charges, net of tax, per share     0.17             0.17        
Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share   $ 0.91     $ 0.65     $ 2.88     $ 2.05  
                                 

LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
SEGMENT INFORMATION

    Quarter Ended   Nine Months Ended
(Amounts in thousands)   1/28/2023   % of sales   1/22/2022   % of sales   1/28/2023   % of sales   1/22/2022   % of sales
GAAP operating income (loss)                                
Wholesale segment   $ 16,940     4.2 %   $ 27,639     6.5 %   $ 81,558     6.3 %   $ 89,098     7.1 %
Retail segment     44,203     17.6 %     24,102     12.2 %     123,855     16.8 %     68,502     12.0 %
Corporate and Other     (18,303 )   N/M       (12,254 )   N/M       (48,047 )   N/M       (29,629 )   N/M  
Consolidated GAAP operating income   $ 42,840     7.5 %   $ 39,487     6.9 %   $ 157,366     8.8 %   $ 127,971     7.7 %
                                 
Non-GAAP items affecting operating income                                
Wholesale segment   $ 10,138         $ 58         $ 10,850         $ (3,099 )    
Retail segment                         132                
Corporate and Other     200           200           (201 )         1,099      
Consolidated Non-GAAP items affecting operating income   $ 10,338         $ 258         $ 10,781         $ (2,000 )    
                                 
Non-GAAP operating income (loss)                                
Wholesale segment   $ 27,078     6.6 %   $ 27,697     6.5 %   $ 92,408     7.1 %   $ 85,999     6.8 %
Retail segment     44,203     17.6 %     24,102     12.2 %     123,987     16.8 %     68,502     12.0 %
Corporate and Other     (18,103 )   N/M       (12,054 )   N/M       (48,248 )   N/M       (28,530 )   N/M  
Consolidated Non-GAAP operating income   $ 53,178     9.3 %   $ 39,745     7.0 %   $ 168,147     9.4 %   $ 125,971     7.5 %
                                 
N/M - Not Meaningful                                

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Source: La-Z-Boy Incorporated