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La-Z-Boy (LZB) Q1 Earnings Match Estimates, Revenues Top
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La-Z-Boy Incorporated (LZB - Free Report) posted decent first-quarter fiscal 2025 (ended Jul 27, 2024) results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top line increased on a year-over-year basis, driven by increased delivered volume in the Wholesale segment.
The company is committed to long-term investment despite near-term challenges in the furniture industry. Owing to the industry headwinds, it expects a modest improvement in second-quarter fiscal 2025 sales compared with the first-quarter tally, supported by seasonality.
While short-term market disruptions may continue to impact the fiscal year, LZB is well-positioned to benefit when industry conditions improve. Through its Century Vision strategy, the company is focused on expanding its core Retail segment by enhancing in-store execution, opening new stores and acquiring independent La-Z-Boy Furniture Galleries stores. It is aiming for superior returns over the long term.
Quarter in Detail
During the said quarter, La-Z-Boy reported adjusted earnings of 62 cents per share. The figure was in line with the Zacks Consensus Estimate and the year-ago quarter’s levels.
La-Z-Boy Incorporated Price, Consensus and EPS Surprise
Consolidated delivered sales amounted to $496 million, topping the consensus mark of $486 million by 1.9%. The metric increased 3% from the prior-year quarter’s levels of $482 million.
Segment Details
Retail: Delivered sales fell 3% to $202 million from the prior year’s levels, which included the delivery of residual backlog related to component shortages.
Written sales in the Retail segment (LZB's company-owned La-Z-Boy Furniture Galleries stores) increased 4% year over year, driven by growth in acquired and new stores. This was more than compensated for lower same-store sales compared with the previous year’s levels.
Written same-store sales declined 3% year over year due to reduced foot traffic and a challenging economic environment, partially offset by improved conversion rates.
The segment's non-GAAP operating margin contracted 380 basis points (bps) year over year to 10.3%. The downside was caused by increased fixed costs stemming from lower delivered sales.
Wholesale: Sales in the segment moved up 5% year over year to $351 million, driven by increased delivered volume to external customers. The upside was partially offset by lower intercompany sales in the Retail segment and reduced delivered volume in the casegoods business.
The segment's non-GAAP operating margin expanded 10 bps year over year to 6.9%. The upside was backed by gross margin expansion, mainly from lower input costs. This was partially offset by a channel mix related to higher non-La-Z-Boy Furniture Galleries delivered sales.
Corporate & Other: Sales in the segment declined 3.4% year over year to $39 million. Under the segment, Joybird's written sales rose 9% year over year, while delivered sales declined 3% year over year to $35 million.
Financials
As of Jul 27, 2024, the company had $342.3 million of cash and equivalents, up from $341.1 million at the fiscal 2024 end.
Net cash from operations for the reported quarter totaled $52 million compared with $26 million in the prior-year period.
Q2 Fiscal 2025 Guidance
For second-quarter fiscal 2025, the company anticipates delivered sales to range between $495 million and $515 million compared with $511 million reported in the year-ago quarter.
The non-GAAP operating margin is expected to fall within the range of 6-7% compared with 7.9% reported in the year-ago quarter.
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimate of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
Soft sales hindered the company’s performance in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.
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La-Z-Boy (LZB) Q1 Earnings Match Estimates, Revenues Top
La-Z-Boy Incorporated (LZB - Free Report) posted decent first-quarter fiscal 2025 (ended Jul 27, 2024) results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top line increased on a year-over-year basis, driven by increased delivered volume in the Wholesale segment.
The company is committed to long-term investment despite near-term challenges in the furniture industry. Owing to the industry headwinds, it expects a modest improvement in second-quarter fiscal 2025 sales compared with the first-quarter tally, supported by seasonality.
While short-term market disruptions may continue to impact the fiscal year, LZB is well-positioned to benefit when industry conditions improve. Through its Century Vision strategy, the company is focused on expanding its core Retail segment by enhancing in-store execution, opening new stores and acquiring independent La-Z-Boy Furniture Galleries stores. It is aiming for superior returns over the long term.
Quarter in Detail
During the said quarter, La-Z-Boy reported adjusted earnings of 62 cents per share. The figure was in line with the Zacks Consensus Estimate and the year-ago quarter’s levels.
La-Z-Boy Incorporated Price, Consensus and EPS Surprise
La-Z-Boy Incorporated price-consensus-eps-surprise-chart | La-Z-Boy Incorporated Quote
Consolidated delivered sales amounted to $496 million, topping the consensus mark of $486 million by 1.9%. The metric increased 3% from the prior-year quarter’s levels of $482 million.
Segment Details
Retail: Delivered sales fell 3% to $202 million from the prior year’s levels, which included the delivery of residual backlog related to component shortages.
Written sales in the Retail segment (LZB's company-owned La-Z-Boy Furniture Galleries stores) increased 4% year over year, driven by growth in acquired and new stores. This was more than compensated for lower same-store sales compared with the previous year’s levels.
Written same-store sales declined 3% year over year due to reduced foot traffic and a challenging economic environment, partially offset by improved conversion rates.
The segment's non-GAAP operating margin contracted 380 basis points (bps) year over year to 10.3%. The downside was caused by increased fixed costs stemming from lower delivered sales.
Wholesale: Sales in the segment moved up 5% year over year to $351 million, driven by increased delivered volume to external customers. The upside was partially offset by lower intercompany sales in the Retail segment and reduced delivered volume in the casegoods business.
The segment's non-GAAP operating margin expanded 10 bps year over year to 6.9%. The upside was backed by gross margin expansion, mainly from lower input costs. This was partially offset by a channel mix related to higher non-La-Z-Boy Furniture Galleries delivered sales.
Corporate & Other: Sales in the segment declined 3.4% year over year to $39 million. Under the segment, Joybird's written sales rose 9% year over year, while delivered sales declined 3% year over year to $35 million.
Financials
As of Jul 27, 2024, the company had $342.3 million of cash and equivalents, up from $341.1 million at the fiscal 2024 end.
Net cash from operations for the reported quarter totaled $52 million compared with $26 million in the prior-year period.
Q2 Fiscal 2025 Guidance
For second-quarter fiscal 2025, the company anticipates delivered sales to range between $495 million and $515 million compared with $511 million reported in the year-ago quarter.
The non-GAAP operating margin is expected to fall within the range of 6-7% compared with 7.9% reported in the year-ago quarter.
Zacks Rank
La-Z-Boy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Hyatt Hotels Corporation (H - Free Report) delivered second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimate of 3-5%.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis.
During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.
JAKKS Pacific, Inc. (JAKK - Free Report) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.
Soft sales hindered the company’s performance in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.