- Quarter highlights: La-Z-Boy reported consolidated delivered sales of $496 million for QQ1 2025, up 3% year over year, with the Wholesale segment delivering a 5% increase to external customers. Non-GAAP operating margin stood at 6.6% and non-GAAP diluted EPS was $0.62, supported by robust operating cash flow of $52 million and shareholder distributions totaling about $42 million. The company ended the period with roughly $342 million in cash and indicated no external debt, reinforcing balance-sheet flexibility as Century Vision unfolds.
- Market backdrop and strategic posture: Management reiterated that the furniture/home furnishings market remains challenged by elevated mortgage rates, housing costs, and macro uncertainty, yet remains confident that Century Vision — including accelerating store growth, brand expansion (La-Z-Boy and Joybird), and supply-chain enhancements — can drive above-market growth and double-digit operating margins over the long term. The company signaled ongoing acquisitions and new-store openings (one store closed within QQ1 and two additional independent-store deals signed for Florida, with closing in Q2).
- Outlook and near-term dynamics: For the second quarter, management guided $495M–$515M in sales and 6%–7% non-GAAP operating margin, acknowledging near-term margin compression from negative same-store sales and mix shifts toward lower-margin wholesale channels. They expect 12–15 new La-Z-Boy Furniture Galleries stores to open in the year, with further investment in Century Vision initiatives. Management also signaled ongoing macro risk to full-year industry demand, but remained committed to outperforming the market through brand and channel initiatives, cost discipline, and capital allocation geared to reinvestment and shareholder value.