Cover Page
Cover Page - shares | 3 Months Ended | |
Jul. 29, 2023 | Aug. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-9656 | |
Entity Registrant Name | LA-Z-BOY INCORPORATED | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-0751137 | |
Entity Address, Address Line One | One La-Z-Boy Drive, | |
Entity Address, City or Town | Monroe, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48162-5138 | |
City Area Code | 734 | |
Local Phone Number | 242-144 | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | LZB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,051,539 | |
Entity Central Index Key | 0000057131 | |
Current Fiscal Year End Date | --04-27 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 481,651 | $ 604,091 |
Cost of sales | 275,923 | 373,061 |
Gross profit | 205,728 | 231,030 |
Selling, general and administrative expense | 171,202 | 178,387 |
Operating income | 34,526 | 52,643 |
Interest expense | (122) | (159) |
Interest income | 3,056 | 474 |
Other income (expense), net | 556 | 45 |
Income before income taxes | 38,016 | 53,003 |
Income tax expense | 10,090 | 14,063 |
Net income | 27,926 | 38,940 |
Net income attributable to noncontrolling interests | (447) | (452) |
Net income attributable to La-Z-Boy Incorporated | $ 27,479 | $ 38,488 |
Earnings Per Share, Basic [Abstract] | ||
Basic weighted average common shares (in shares) | 43,239 | 43,092 |
Basic net income attributable to La-Z-Boy Incorporated per share (in dollars per share) | $ 0.64 | $ 0.89 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted weighted average common shares (in shares) | 43,333 | 43,142 |
Diluted net income attributable to La-Z-Boy Incorporated per share (in dollars per share) | $ 0.63 | $ 0.89 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 27,926 | $ 38,940 |
Other comprehensive income (loss) | ||
Currency translation adjustment | 1,047 | (2,160) |
Net unrealized gain on marketable securities, net of tax | 220 | 86 |
Net pension amortization, net of tax | 23 | 36 |
Total other comprehensive income (loss) | 1,290 | (2,038) |
Total comprehensive income before noncontrolling interests | 29,216 | 36,902 |
Comprehensive (income) loss attributable to noncontrolling interests | (407) | 67 |
Comprehensive income attributable to La-Z-Boy Incorporated | $ 28,809 | $ 36,969 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Current assets | ||
Cash and equivalents | $ 336,434 | $ 343,374 |
Restricted cash | 3,816 | 3,304 |
Receivables, net of allowance of $4,425 at 7/29/2023 and $4,776 at 4/29/2023 | 110,857 | 125,536 |
Inventories, net | 269,429 | 276,257 |
Other current assets | 108,944 | 106,129 |
Total current assets | 829,480 | 854,600 |
Property, plant and equipment, net | 277,282 | 278,578 |
Goodwill | 207,488 | 205,008 |
Other intangible assets, net | 41,529 | 39,375 |
Deferred income taxes – long-term | 8,545 | 8,918 |
Right of use lease assets | 422,894 | 416,269 |
Other long-term assets, net | 60,367 | 63,515 |
Total assets | 1,847,585 | 1,866,263 |
Current liabilities | ||
Accounts payable | 97,954 | 107,460 |
Lease liabilities, short-term | 77,758 | 77,751 |
Accrued expenses and other current liabilities | 262,196 | 290,650 |
Total current liabilities | 437,908 | 475,861 |
Lease liabilities, long-term | 374,972 | 368,163 |
Other long-term liabilities | 70,775 | 70,142 |
Shareholders' equity | ||
Preferred shares – 5,000 authorized; none issued | 0 | 0 |
Common shares, $1.00 par value – 150,000 authorized; 43,110 outstanding at 7/29/2023 and 43,318 outstanding at 4/29/2023 | 43,110 | 43,318 |
Capital in excess of par value | 356,684 | 358,891 |
Retained earnings | 557,666 | 545,155 |
Accumulated other comprehensive loss | (4,198) | (5,528) |
Total La-Z-Boy Incorporated shareholders' equity | 953,262 | 941,836 |
Noncontrolling interests | 10,668 | 10,261 |
Total equity | 963,930 | 952,097 |
Total liabilities and equity | $ 1,847,585 | $ 1,866,263 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Current assets | ||
Receivables, allowance | $ 4,425 | $ 4,776 |
Shareholders' equity | ||
Preferred shares, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized (in shares) | 150,000,000 | 150,000,000 |
Common shares, outstanding (in shares) | 43,110,000 | 43,318,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 27,926 | $ 38,940 |
Adjustments to reconcile net income to cash provided by operating activities | ||
(Gain)/loss on disposal and impairment of assets | 113 | (4) |
(Gain)/loss on sale of investments | 307 | 30 |
Provision for doubtful accounts | (405) | 293 |
Depreciation and amortization | 10,211 | 9,516 |
Amortization of right-of-use lease assets | 17,265 | 18,845 |
Lease impairment/(settlement) | (1,175) | 0 |
Equity-based compensation expense | 2,526 | 1,417 |
Change in deferred taxes | 602 | 544 |
Change in receivables | 14,769 | 25,098 |
Change in inventories | 9,271 | (25,954) |
Change in other assets | (2,820) | (1,229) |
Change in payables | (8,565) | 22,113 |
Change in lease liabilities | (17,882) | (19,256) |
Change in other liabilities | (26,230) | (37,249) |
Net cash provided by operating activities | 25,913 | 33,104 |
Cash flows from investing activities | ||
Proceeds from disposals of assets | 4,031 | 46 |
Capital expenditures | (13,457) | (20,999) |
Purchases of investments | (11,407) | (2,176) |
Proceeds from sales of investments | 12,404 | 4,421 |
Acquisitions | (4,250) | (7,230) |
Net cash used for investing activities | (12,679) | (25,938) |
Cash flows from financing activities | ||
Payments on debt and finance lease liabilities | (67) | (31) |
Stock issued for stock and employee benefit plans, net of shares withheld for taxes | (1,978) | (1,703) |
Repurchases of common stock | (10,007) | (5,004) |
Dividends paid to shareholders | (7,852) | (7,097) |
Net cash used for financing activities | (19,904) | (13,835) |
Effect of exchange rate changes on cash and equivalents | 242 | (750) |
Change in cash, cash equivalents and restricted cash | (6,428) | (7,419) |
Cash, cash equivalents and restricted cash at beginning of period | 346,678 | 248,856 |
Cash, cash equivalents and restricted cash at end of period | 340,250 | 241,437 |
Supplemental disclosure of non-cash investing activities | ||
Capital expenditures included in payables | $ 7,188 | $ 7,130 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Shares | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
Beginning balance at Apr. 30, 2022 | $ 819,622 | $ 43,089 | $ 342,252 | $ 431,181 | $ (5,797) | $ 8,897 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 38,940 | 38,488 | 452 | |||
Other comprehensive income (loss) | (2,038) | (1,519) | (519) | |||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax | (1,703) | 151 | (194) | (1,660) | ||
Repurchase of shares of common stock | (5,004) | (204) | 0 | (4,800) | ||
Stock option and restricted stock expense | 1,417 | 1,417 | ||||
Dividends declared and paid | (7,097) | (7,097) | ||||
Dividends declared not paid | (45) | (45) | ||||
Ending balance at Jul. 30, 2022 | 844,092 | 43,036 | 343,475 | 456,067 | (7,316) | 8,830 |
Beginning balance at Apr. 29, 2023 | 952,097 | 43,318 | 358,891 | 545,155 | (5,528) | 10,261 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 27,926 | 27,479 | 447 | |||
Other comprehensive income (loss) | 1,290 | 1,330 | (40) | |||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax | (1,978) | 149 | (221) | (1,906) | ||
Repurchase of shares of common stock | (10,007) | (357) | (4,512) | (5,138) | ||
Stock option and restricted stock expense | 2,526 | 2,526 | ||||
Dividends declared and paid | (7,852) | (7,852) | ||||
Dividends declared not paid | (72) | (72) | ||||
Ending balance at Jul. 29, 2023 | $ 963,930 | $ 43,110 | $ 356,684 | $ 557,666 | $ (4,198) | $ 10,668 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Dividends paid (in dollars per share) | $ 0.1815 | $ 0.165 |
Dividends declared (in dollars per share) | $ 0.1815 | $ 0.165 |
Common Shares | ||
Shares purchased (in shares) | 357 | 204 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries (collectively, the "Company"). We derived the April 29, 2023 balance sheet from our audited financial statements. We prepared the interim financial information in conformity with generally accepted accounting principles ("US GAAP"), which we applied on a basis consistent with those reflected in our fiscal 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), but the information does not include all of the disclosures required by US GAAP. In management’s opinion, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments (except as otherwise disclosed), that are necessary for a fair statement of results for the respective interim periods. The interim results reflected in the accompanying financial statements are not necessarily indicative of the results of operations that will occur for the full fiscal year ending April 27, 2024. At July 29, 2023, we owned investments in two privately-held companies consisting of non-marketable preferred shares, warrants to purchase common shares, and convertible notes. Each of these companies is a variable interest entity and we have not consolidated their results in our financial statements because we do not have the power to direct those activities that most significantly impact their economic performance and, therefore, are not the primary beneficiary. Accounting Pronouncements Adopted in Fiscal 2024 The following table summarizes Accounting Standards Updates ("ASUs") which were adopted in fiscal 2024, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Fiscal 2024 Accounting Pronouncements not yet Adopted The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Fiscal 2025 Change in Accounting Policy - Distribution Center Costs In the first quarter of fiscal 2024, we made a voluntary change to the presentation of costs directly attributable to our distribution activities conducted through our distribution centers in the United States. Our policy has changed from presenting these costs within selling, general and administrative ("SG&A") expense to presenting them as cost of sales. We believe this presentation is preferable because it will enhance the comparability of our financial statements with those of our industry peers and align with how we internally manage supply chain costs and margin. In accordance with US GAAP, the period presented below has been retrospectively adjusted to reflect the change to cost of sales and SG&A expense. This change had no impact to sales, income from operations, net income, earnings per share, retained earnings or other components of equity or net assets. (Unaudited, amounts in thousands) For the Quarter Ended July 30, 2022 Previously Reported Effect of Change As Adjusted Cost of sales $ 362,631 $ 10,430 $ 373,061 Gross profit 241,460 (10,430) 231,030 Selling, general and administrative expense 188,817 (10,430) 178,387 |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions None of the below acquisitions were significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented. All of our provisional purchase accounting estimates for the acquisitions completed in fiscal 2024 are based on the information and data available to us as of the time of the issuance of these financial statements, and in accordance with Accounting Standard Codification Topic 805-10-25-15, are subject to change within the first 12 months following the acquisition as we gain additional data. Each of the following Retail acquisitions completed in fiscal 2024 and 2023 reflect a core component of our strategic priorities, which is to grow our company-owned retail business and leverage our integrated retail model (where we earn a combined profit on both the wholesale and retail sales) in suitable geographic markets, alongside the existing La-Z-Boy Furniture Galleries ® network. Prior to each Retail acquisition completed in fiscal 2024 and 2023, we licensed to the counterparty the exclusive right to own and operate the La-Z-Boy Furniture Galleries ® stores (and to use the associated trademarks and trade name) in each of their respective markets, and we reacquired these rights when we consummated the transaction. These required rights are indefinite-lived because our retailer agreements are perpetual agreements that have no specific expiration date and no renewal options. The effective settlement date of these arrangements resulted in no settlement gain or loss as the contractual terms were at market. For federal income tax purposes, we amortize and deduct these indefinite-lived intangible assets and goodwill, if any, over 15 years. Colorado Springs, Colorado Acquisition On July 17, 2023, we completed our acquisition of the Colorado Springs, Colorado business that operates two independently owned La-Z-Boy Furniture Galleries ® stores and one distribution center for $6.0 million, subject to customary adjustments. We paid total cash of $4.3 million in the first quarter of fiscal 2024 and the remaining consideration includes forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $2.3 million related to the reacquired rights described above. We also recognized $2.0 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired stores and future benefits of these synergies. Prior Year Acquisitions Denver, Colorado Acquisition On July 18, 2022, we completed our acquisition of the Denver, Colorado business that operates five independently owned La-Z-Boy Furniture Galleries ® |
Cash and Restricted Cash
Cash and Restricted Cash | 3 Months Ended |
Jul. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Restricted Cash | Cash and Restricted Cash We have restricted cash on deposit with a bank as collateral for certain letters of credit. All our letters of credit have maturity dates within the next twelve months, but we expect to renew some of these letters of credit when they mature. (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Cash and cash equivalents $ 336,434 $ 238,170 Restricted cash 3,816 3,267 Total cash, cash equivalents and restricted cash $ 340,250 $ 241,437 |
Inventories
Inventories | 3 Months Ended |
Jul. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of inventories is as follows: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Raw materials $ 119,477 $ 116,440 Work in process 21,512 24,328 Finished goods 174,352 181,401 FIFO inventories 315,341 322,169 Excess of FIFO over LIFO (45,912) (45,912) Total inventories $ 269,429 $ 276,257 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We have goodwill on our consolidated balance sheet as follows: Reportable Segment/Unit Reporting Unit Related Acquisition Wholesale Segment United Kingdom Wholesale business in the United Kingdom and Ireland Wholesale Segment United Kingdom La-Z-Boy United Kingdom Manufacturing (Furnico) Retail Segment Retail La-Z-Boy Furniture Galleries ® stores Corporate and Other Joybird Joybird The following table summarizes changes in the carrying amount of our goodwill by reportable segment: (Unaudited, amounts in thousands) Wholesale Retail Corporate Total Balance at April 29, 2023 (1) $ 20,202 $ 129,360 $ 55,446 $ 205,008 Acquisitions — 1,951 — 1,951 Translation adjustment 450 79 — 529 Balance at July 29, 2023 (1) $ 20,652 $ 131,390 $ 55,446 $ 207,488 (1) Includes $26.9 million of accumulated impairment losses in Corporate and Other. We have intangible assets on our consolidated balance sheet as follows: Reportable Segment Intangible Asset Useful Life Wholesale Segment Primarily acquired customer relationships from our acquisition of the wholesale business in the United Kingdom and Ireland Amortizable over useful lives that do not exceed 15 years Wholesale Segment American Drew ® trade name Indefinite-lived Retail Segment Reacquired rights to own and operate La-Z-Boy Furniture Galleries ® stores Indefinite-lived Corporate and Other Joybird ® trade name Amortizable over eight The following summarizes changes in our intangible assets: (Unaudited, amounts in thousands) Indefinite- Finite-Lived Indefinite- Other Total Balance at April 29, 2023 $ 1,155 $ 2,594 $ 33,739 $ 1,887 $ 39,375 Acquisitions — — 2,307 — 2,307 Amortization — (200) — (55) (255) Translation adjustment — — 60 42 102 Balance at July 29, 2023 $ 1,155 $ 2,394 $ 36,106 $ 1,874 $ 41,529 We test indefinite-lived intangibles and goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that an asset might be impaired. We test amortizable intangible assets for impairment if events or changes in circumstances indicate that the assets might be impaired. |
Investments
Investments | 3 Months Ended |
Jul. 29, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We have current and long-term investments intended to enhance returns on our cash as well as to fund future obligations of our non-qualified defined benefit retirement plan, our executive deferred compensation plan, and our performance compensation retirement plan. Our short-term investments are included in other current assets and our long-term investments are included in other long-term assets on our consolidated balance sheet. The following summarizes our investments: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Short-term investments: Marketable securities $ 7,402 $ 5,043 Held-to-maturity investments 1,349 1,351 Total short-term investments 8,751 6,394 Long-term investments: Marketable securities 15,107 18,509 Total investments $ 23,858 $ 24,903 Investments to enhance returns on cash $ 10,646 $ 11,617 Investments to fund compensation/retirement plans 13,212 13,286 Total investments $ 23,858 $ 24,903 The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type: 7/29/2023 4/29/2023 (Unaudited, amounts in thousands) Gross Gross Fair Value Gross Gross Fair Value Equity securities $ 1,890 $ (68) $ 7,446 $ 1,338 $ (103) $ 6,853 Fixed income 13 (297) 12,545 42 (620) 14,039 Other 1,170 — 3,867 1,171 — 4,011 Total securities $ 3,073 $ (365) $ 23,858 $ 2,551 $ (723) $ 24,903 The following table summarizes sales of marketable securities: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Proceeds from sales $ 12,404 $ 4,246 Gross realized gains 153 27 Gross realized losses (459) (56) The following is a summary of the fair value of fixed income marketable securities, classified as available-for-sale securities, by contractual maturity: (Unaudited, amounts in thousands) 7/29/2023 Within one year $ 7,398 Within two to five years 1,899 Within six to ten years — Thereafter 3,248 Total $ 12,545 |
Product Warranties
Product Warranties | 3 Months Ended |
Jul. 29, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties We accrue an estimated liability for product warranties when we recognize revenue on the sale of warrantied products. We estimate future warranty claims on product sales based on our historical claims experience and periodically adjust the provision to reflect changes in actual experience. We incorporate repair costs into our liability estimates, including materials, labor and overhead amounts necessary to perform repairs, and any costs associated with delivering repaired product to our customers. Over 90% of our warranty liability relates to our Wholesale reportable segment, as we generally warrant our products against defects for one one A reconciliation of the changes in our product warranty liability is as follows: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 (1) 7/30/2022 Balance as of the beginning of the period $ 30,984 $ 27,036 Accruals during the period 6,665 7,826 Settlements during the period (6,855) (7,346) Balance as of the end of the period $ 30,794 $ 27,516 (1) $20.0 million and $19.9 million is recorded in accrued expenses and other current liabilities as of July 29, 2023, and April 29, 2023, respectively, while the remainder is included in other long-term liabilities. We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Equity-based awards expense $ 2,526 $ 1,417 Liability-based awards expense (1) 88 128 Total stock-based compensation expense $ 2,614 $ 1,545 (1) Includes stock appreciation rights, deferred stock units issued to Directors, restricted stock units, and performance-based units. Compensation expense for these awards is based on the market price of our common stock on the grant date and is remeasured each reporting period based on the market value of our common shares on the last day of the reported period. Restricted Stock . We granted 330,140 shares of restricted stock units to employees during the first quarter of fiscal 2024 and we also have restricted stock awards outstanding from previous grants. We issue restricted stock at no cost to the employees and account for restricted stock awards as equity-based awards because when they vest, they will be settled in common shares. We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards. Restricted stock awards vest at 25% per year, beginning one year from the grant date for a term of four years, with continued vesting upon retirement with respect to the fiscal 2023 and 2024 grants. We accelerate the expense for restricted stock granted to retirement-eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur. The weighted-average fair value of the restricted stock that was awarded in the first quarter of fiscal 2024 was $27.66 per share, the market value of our common shares on the date of grant. Performance Shares. During the first quarter of fiscal 2024, we granted 219,154 performance-based shares, and we also have performance-based share awards outstanding from previous grants. Payouts of these grants depend on our financial performance (50%) and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other public companies (50%). The performance share opportunity ranges from 50% of the employee’s target award if minimum performance requirements are met to a maximum of 200% of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three We account for performance-based shares as equity-based awards because when they vest, they will be settled in common shares. In the event of an employee's termination during the vesting period, the potential right to earn shares under this program is generally forfeited and we have elected to recognize forfeitures as an adjustment to compensation expense in the same period in which the forfeitures occur. For shares that vest based on our results relative to the performance goals, we expense as compensation cost the fair value of the shares as of the day we granted the awards recognized over the performance period, taking into account the probability that we will satisfy the performance goals. The fair value of each share of the awards we granted in fiscal 2024 that vest based on attaining performance goals was $25.48, the market value of our common shares on the date we granted the awards less the dividends we expect to pay before the shares vest. For shares that vest based on market conditions, we use a Monte Carlo valuation model to estimate each share’s fair value as of the date of grant. The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine our expected performance ranking relative to our peer group. For shares that vest based on market conditions, we expense compensation cost over the vesting period regardless of whether the market condition is ultimately satisfied. Based on the Monte Carlo model, the fair value as of the grant date of the fiscal 2024 grant of shares that vest based on market conditions was $34.15. Stock Options. We did not grant stock options to employees during fiscal 2024, but we have stock options outstanding from grants from prior years. We account for stock options as equity-based awards because when they are exercised, they will be settled in common shares. We recognize compensation expense for stock options over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards. The vesting period for our stock options ranges from one |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Jul. 29, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Activity in accumulated other comprehensive income (loss) for the quarters ended July 29, 2023, and July 30, 2022, is as follows: (Unaudited, amounts in thousands) Translation adjustment Unrealized gain (loss) on marketable securities Net pension amortization and net actuarial loss Accumulated other comprehensive income (loss) Balance at April 29, 2023 $ (2,652) $ (145) $ (2,731) $ (5,528) Changes before reclassifications 1,087 (15) — 1,072 Amounts reclassified to net income — 307 31 338 Tax effect — (72) (8) (80) Other comprehensive income (loss) attributable to La-Z-Boy Incorporated 1,087 220 23 1,330 Balance at July 29, 2023 $ (1,565) $ 75 $ (2,708) $ (4,198) Balance at April 30, 2022 $ (1,961) $ (298) $ (3,538) $ (5,797) Changes before reclassifications (1,641) 55 — (1,586) Amounts reclassified to net income — 59 48 107 Tax effect — (28) (12) (40) Other comprehensive income (loss) attributable to La-Z-Boy Incorporated (1,641) 86 36 (1,519) Balance at July 30, 2022 $ (3,602) $ (212) $ (3,502) $ (7,316) We reclassified both the unrealized gain (loss) on marketable securities and the net pension amortization from accumulated other comprehensive loss to net income through other income (expense), net. The components of noncontrolling interest were as follows: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Balance as of the beginning of the period $ 10,261 $ 8,897 Net income 447 452 Other comprehensive income (loss) (40) (519) Balance as of the end of the period $ 10,668 $ 8,830 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jul. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenue is primarily derived from product sales. We report product sales net of discounts and recognize them when control (rights and obligations associated with the product) passes to the customer. For sales to furniture retailers or distributors, control typically transfers when we ship the product. In cases where we sell directly to the end consumer, control of the product is generally transferred upon delivery. For shipping and handling activities, we have elected to apply the accounting policy election permitted in ASC 606-10-25-18B, which allows an entity to account for shipping and handling activities as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. We expense shipping and handling costs at the time we recognize revenue in accordance with this election. For sales tax, we have elected to apply the accounting policy election permitted in ASC 606-10-32-2A, which allows an entity to exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows us to present revenue net of these certain types of taxes. We have elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. The following table presents our revenue disaggregated by product category and by segment or unit: Quarter Ended July 29, 2023 Quarter Ended July 30, 2022 (Unaudited, amounts in thousands) Wholesale Retail Corporate Total Wholesale Retail Corporate Total Upholstered Furniture $ 283,418 $ 170,714 $ 46,434 $ 500,566 $ 330,478 $ 196,802 $ 51,242 $ 578,522 Casegoods Furniture 20,376 11,833 4,708 36,917 28,006 12,454 7,728 48,188 Delivery 40,043 8,243 1,902 50,188 56,237 8,016 1,903 66,156 Other (1) (10,362) 17,453 (12,983) (5,892) 27,097 18,749 (12,143) 33,703 Total 333,475 208,243 40,061 581,779 441,818 236,021 48,730 726,569 Eliminations (100,128) (122,478) Consolidated Net Sales $ 481,651 $ 604,091 (1) Primarily includes discounts and allowances, revenue for advertising, royalties, parts, accessories, after-treatment products, surcharges, rebates and other sales incentives. In fiscal 2024, certain amounts that were previously charged as surcharges in fiscal 2023 are now included in the base product pricing and reflected in the amounts by product category. Upholstered Furniture - Includes gross revenue for upholstered furniture, such as recliners, sofas, loveseats, chairs, sectionals, modulars, and ottomans. This gross revenue includes sales to La-Z-Boy Furniture Galleries ® stores (including company-owned stores), operators of La-Z-Boy Comfort Studio ® locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer. Casegoods Furniture - Includes gross revenue for casegoods furniture typically found in a bedroom, such as beds, chests, dressers, nightstands and benches; furniture typically found in the dining room, such as dining tables, storage units, and stools; and furniture typically found throughout the home, such as cocktail tables, chairsides, sofa tables, end tables, and entertainment centers. This gross revenue includes sales to La-Z-Boy Furniture Galleries ® stores (including company-owned stores), independent retailers, and the end consumer. Contract Assets and Liabilities. We receive customer deposits from end consumers before we recognize revenue and in some cases, we have the unconditional right to collect the remaining portion of the order price before we fulfill our performance obligation, resulting in a contract asset and a corresponding deferred revenue liability. In our consolidated balance sheet, customer deposits and deferred revenue (collectively, the "contract liabilities") are reported in accrued expenses and other current liabilities while contract assets are reported as other current assets. The following table presents our contract assets and liabilities: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Contract assets $ 41,604 $ 44,939 Customer deposits $ 97,172 $ 105,766 Deferred revenue 41,604 44,939 Total contract liabilities (1) $ 138,776 $ 150,705 (1) During the quarter ended July 29, 2023, we recognized revenue of $126.0 million related to our contract liability balance at April 29, 2023. |
Segment Information
Segment Information | 3 Months Ended |
Jul. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable operating segments include the Wholesale segment and the Retail segment. Wholesale Segment . Our Wholesale segment consists primarily of three operating segments: La-Z-Boy, our largest operating segment, our England subsidiary, and our casegoods operating segment that sells furniture under three brands: American Drew ® , Hammary ® and Kincaid ® . The Wholesale segment also includes our international wholesale and manufacturing businesses. We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments. Our Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas and imports casegoods (wood) furniture, such as bedroom sets, dining room sets, entertainment centers and occasional pieces. The Wholesale segment sells directly to La-Z-Boy Furniture Galleries ® stores, operators of La-Z-Boy Comfort Studio ® locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers. Retail Segment . Our Retail segment consists of one operating segment comprised of our 175 company-owned La-Z-Boy Furniture Galleries ® stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores. Corporate and Other. Corporate and Other includes the shared costs for corporate functions, including human resources, information technology, finance and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy ® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments, including our global trading company in Hong Kong and Joybird, an e-commerce retailer that manufactures upholstered furniture, such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture, such as occasional tables and other accessories. Joybird sells to the end consumer primarily online through its website, www.joybird.com. None of the operating segments included in Corporate and Other meet the requirements of reportable segments. The following table presents sales and operating income (loss) by segment: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Sales Wholesale segment: Sales to external customers $ 236,251 $ 323,728 Intersegment sales 97,224 118,090 Wholesale segment sales 333,475 441,818 Retail segment sales 208,243 236,021 Corporate and Other: Sales to external customers 37,157 44,342 Intersegment sales 2,904 4,388 Corporate and Other sales 40,061 48,730 Eliminations (100,128) (122,478) Consolidated sales $ 481,651 $ 604,091 Operating Income (Loss) Wholesale segment $ 23,503 $ 26,142 Retail segment 29,264 38,152 Corporate and Other (18,241) (11,651) Consolidated operating income 34,526 52,643 Interest expense (122) (159) Interest income 3,056 474 Other income (expense), net 556 45 Income before income taxes $ 38,016 $ 53,003 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective tax rate was 26.5% for both the quarter ended July 29, 2023 and the quarter ended July 30, 2022. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Jul. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share: Quarter Ended (Unaudited, amounts in thousands, except per share data) 7/29/2023 7/30/2022 Numerator (basic and diluted): Net income available to common Shareholders $ 27,479 $ 38,488 Denominator: Basic weighted average common shares outstanding 43,239 43,092 Contingent common shares 54 50 Stock option dilution 40 — Diluted weighted average common shares outstanding 43,333 43,142 Earnings per Share: Basic $ 0.64 $ 0.89 Diluted $ 0.63 $ 0.89 The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period. We exclude the effect of options from our diluted share calculation when the weighted average exercise price of the options is higher than the average market price, since including the options' effect would be anti-dilutive. For the quarters ended July 29, 2023 and July 30, 2022, we excluded options to purchase 0.7 million shares and 1.5 million shares from the diluted share calculation, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting standards require that we put financial assets and liabilities into one of three categories based on the inputs we use to value them: • Level 1 — Financial assets and liabilities, the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access. • Level 2 — Financial assets and liabilities, the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability. • Level 3 — Financial assets and liabilities, the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Accounting standards require that in making fair value measurements, we use observable market data when available. When inputs used to measure fair value fall within different levels of the hierarchy, we categorize the fair value measurement as being in the lowest level that is significant to the measurement. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur. In addition to assets and liabilities that we record at fair value on a recurring basis, we are required to record assets and liabilities at fair value on a non-recurring basis. We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss. The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 29, 2023 and April 29, 2023. There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented. At July 29, 2023 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 11,815 $ — $ 10,694 $ 22,509 Held-to-maturity investments 1,349 — — — 1,349 Total assets $ 1,349 $ 11,815 $ — $ 10,694 $ 23,858 At April 29, 2023 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 16,557 $ — $ 6,995 $ 23,552 Held-to-maturity investments 1,351 — — — 1,351 Total assets $ 1,351 $ 16,557 $ — $ 6,995 $ 24,903 (1) Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology. At July 29, 2023 and April 29, 2023, we held marketable securities intended to enhance returns on our cash and to fund future obligations of our non-qualified defined benefit retirement plan, our executive deferred compensation plan and our performance compensation retirement plan. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 27,479 | $ 38,488 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 29, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Ms. Janet Kerr [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 26, 2023, Ms. Janet Kerr, a member of the Company’s Board of Directors, adopted a trading arrangement for the sale of securities of the Company’s common stock (the “Rule 10b5-1 Trading Plan”) that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Ms. Kerr’s Rule 10b5-1 Trading Plan, which has a duration of six months, provides for the sale of up to 4,582 shares of common stock pursuant to the terms of the plan |
Name | Ms. Janet Kerr |
Title | member of the Company’s Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 26, 2023 |
Arrangement Duration | 6 months |
Aggregate Available | 4,582 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent accounting pronouncements | Accounting Pronouncements Adopted in Fiscal 2024 The following table summarizes Accounting Standards Updates ("ASUs") which were adopted in fiscal 2024, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Fiscal 2024 Accounting Pronouncements not yet Adopted The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Fiscal 2025 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements Adopted and Not Yet Adopted | The following table summarizes Accounting Standards Updates ("ASUs") which were adopted in fiscal 2024, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Fiscal 2024 Accounting Pronouncements not yet Adopted The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Fiscal 2025 |
Schedule of Error Corrections and Prior Period Adjustments | In accordance with US GAAP, the period presented below has been retrospectively adjusted to reflect the change to cost of sales and SG&A expense. This change had no impact to sales, income from operations, net income, earnings per share, retained earnings or other components of equity or net assets. (Unaudited, amounts in thousands) For the Quarter Ended July 30, 2022 Previously Reported Effect of Change As Adjusted Cost of sales $ 362,631 $ 10,430 $ 373,061 Gross profit 241,460 (10,430) 231,030 Selling, general and administrative expense 188,817 (10,430) 178,387 |
Cash and Restricted Cash (Table
Cash and Restricted Cash (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | We have restricted cash on deposit with a bank as collateral for certain letters of credit. All our letters of credit have maturity dates within the next twelve months, but we expect to renew some of these letters of credit when they mature. (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Cash and cash equivalents $ 336,434 $ 238,170 Restricted cash 3,816 3,267 Total cash, cash equivalents and restricted cash $ 340,250 $ 241,437 |
Restrictions on Cash and Cash Equivalents | We have restricted cash on deposit with a bank as collateral for certain letters of credit. All our letters of credit have maturity dates within the next twelve months, but we expect to renew some of these letters of credit when they mature. (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Cash and cash equivalents $ 336,434 $ 238,170 Restricted cash 3,816 3,267 Total cash, cash equivalents and restricted cash $ 340,250 $ 241,437 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | A summary of inventories is as follows: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Raw materials $ 119,477 $ 116,440 Work in process 21,512 24,328 Finished goods 174,352 181,401 FIFO inventories 315,341 322,169 Excess of FIFO over LIFO (45,912) (45,912) Total inventories $ 269,429 $ 276,257 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | We have goodwill on our consolidated balance sheet as follows: Reportable Segment/Unit Reporting Unit Related Acquisition Wholesale Segment United Kingdom Wholesale business in the United Kingdom and Ireland Wholesale Segment United Kingdom La-Z-Boy United Kingdom Manufacturing (Furnico) Retail Segment Retail La-Z-Boy Furniture Galleries ® stores Corporate and Other Joybird Joybird The following table summarizes changes in the carrying amount of our goodwill by reportable segment: (Unaudited, amounts in thousands) Wholesale Retail Corporate Total Balance at April 29, 2023 (1) $ 20,202 $ 129,360 $ 55,446 $ 205,008 Acquisitions — 1,951 — 1,951 Translation adjustment 450 79 — 529 Balance at July 29, 2023 (1) $ 20,652 $ 131,390 $ 55,446 $ 207,488 |
Schedule of Other Intangible Assets - Indefinite-Lived | We have intangible assets on our consolidated balance sheet as follows: Reportable Segment Intangible Asset Useful Life Wholesale Segment Primarily acquired customer relationships from our acquisition of the wholesale business in the United Kingdom and Ireland Amortizable over useful lives that do not exceed 15 years Wholesale Segment American Drew ® trade name Indefinite-lived Retail Segment Reacquired rights to own and operate La-Z-Boy Furniture Galleries ® stores Indefinite-lived Corporate and Other Joybird ® trade name Amortizable over eight The following summarizes changes in our intangible assets: (Unaudited, amounts in thousands) Indefinite- Finite-Lived Indefinite- Other Total Balance at April 29, 2023 $ 1,155 $ 2,594 $ 33,739 $ 1,887 $ 39,375 Acquisitions — — 2,307 — 2,307 Amortization — (200) — (55) (255) Translation adjustment — — 60 42 102 Balance at July 29, 2023 $ 1,155 $ 2,394 $ 36,106 $ 1,874 $ 41,529 |
Schedule of Other Intangible Assets - Finite-Lived | We have intangible assets on our consolidated balance sheet as follows: Reportable Segment Intangible Asset Useful Life Wholesale Segment Primarily acquired customer relationships from our acquisition of the wholesale business in the United Kingdom and Ireland Amortizable over useful lives that do not exceed 15 years Wholesale Segment American Drew ® trade name Indefinite-lived Retail Segment Reacquired rights to own and operate La-Z-Boy Furniture Galleries ® stores Indefinite-lived Corporate and Other Joybird ® trade name Amortizable over eight The following summarizes changes in our intangible assets: (Unaudited, amounts in thousands) Indefinite- Finite-Lived Indefinite- Other Total Balance at April 29, 2023 $ 1,155 $ 2,594 $ 33,739 $ 1,887 $ 39,375 Acquisitions — — 2,307 — 2,307 Amortization — (200) — (55) (255) Translation adjustment — — 60 42 102 Balance at July 29, 2023 $ 1,155 $ 2,394 $ 36,106 $ 1,874 $ 41,529 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | The following summarizes our investments: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Short-term investments: Marketable securities $ 7,402 $ 5,043 Held-to-maturity investments 1,349 1,351 Total short-term investments 8,751 6,394 Long-term investments: Marketable securities 15,107 18,509 Total investments $ 23,858 $ 24,903 Investments to enhance returns on cash $ 10,646 $ 11,617 Investments to fund compensation/retirement plans 13,212 13,286 Total investments $ 23,858 $ 24,903 |
Summary of Unrealized Gains, Unrealized Losses, and Fair Value By Investment Type | The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type: 7/29/2023 4/29/2023 (Unaudited, amounts in thousands) Gross Gross Fair Value Gross Gross Fair Value Equity securities $ 1,890 $ (68) $ 7,446 $ 1,338 $ (103) $ 6,853 Fixed income 13 (297) 12,545 42 (620) 14,039 Other 1,170 — 3,867 1,171 — 4,011 Total securities $ 3,073 $ (365) $ 23,858 $ 2,551 $ (723) $ 24,903 |
Summary of Sales of Marketable Securities | The following table summarizes sales of marketable securities: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Proceeds from sales $ 12,404 $ 4,246 Gross realized gains 153 27 Gross realized losses (459) (56) |
Summary of Fair Value of Fixed Income Marketable Securities | The following is a summary of the fair value of fixed income marketable securities, classified as available-for-sale securities, by contractual maturity: (Unaudited, amounts in thousands) 7/29/2023 Within one year $ 7,398 Within two to five years 1,899 Within six to ten years — Thereafter 3,248 Total $ 12,545 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Product Warranties Disclosures [Abstract] | |
Reconciliation of changes in product warranty liability | A reconciliation of the changes in our product warranty liability is as follows: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 (1) 7/30/2022 Balance as of the beginning of the period $ 30,984 $ 27,036 Accruals during the period 6,665 7,826 Settlements during the period (6,855) (7,346) Balance as of the end of the period $ 30,794 $ 27,516 (1) $20.0 million and $19.9 million is recorded in accrued expenses and other current liabilities as of July 29, 2023, and April 29, 2023, respectively, while the remainder is included in other long-term liabilities. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of total stock-based compensation expense | The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Equity-based awards expense $ 2,526 $ 1,417 Liability-based awards expense (1) 88 128 Total stock-based compensation expense $ 2,614 $ 1,545 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of activity in accumulated other comprehensive income (loss) | Activity in accumulated other comprehensive income (loss) for the quarters ended July 29, 2023, and July 30, 2022, is as follows: (Unaudited, amounts in thousands) Translation adjustment Unrealized gain (loss) on marketable securities Net pension amortization and net actuarial loss Accumulated other comprehensive income (loss) Balance at April 29, 2023 $ (2,652) $ (145) $ (2,731) $ (5,528) Changes before reclassifications 1,087 (15) — 1,072 Amounts reclassified to net income — 307 31 338 Tax effect — (72) (8) (80) Other comprehensive income (loss) attributable to La-Z-Boy Incorporated 1,087 220 23 1,330 Balance at July 29, 2023 $ (1,565) $ 75 $ (2,708) $ (4,198) Balance at April 30, 2022 $ (1,961) $ (298) $ (3,538) $ (5,797) Changes before reclassifications (1,641) 55 — (1,586) Amounts reclassified to net income — 59 48 107 Tax effect — (28) (12) (40) Other comprehensive income (loss) attributable to La-Z-Boy Incorporated (1,641) 86 36 (1,519) Balance at July 30, 2022 $ (3,602) $ (212) $ (3,502) $ (7,316) |
Schedule of components of non-controlling interest | The components of noncontrolling interest were as follows: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Balance as of the beginning of the period $ 10,261 $ 8,897 Net income 447 452 Other comprehensive income (loss) (40) (519) Balance as of the end of the period $ 10,668 $ 8,830 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents our revenue disaggregated by product category and by segment or unit: Quarter Ended July 29, 2023 Quarter Ended July 30, 2022 (Unaudited, amounts in thousands) Wholesale Retail Corporate Total Wholesale Retail Corporate Total Upholstered Furniture $ 283,418 $ 170,714 $ 46,434 $ 500,566 $ 330,478 $ 196,802 $ 51,242 $ 578,522 Casegoods Furniture 20,376 11,833 4,708 36,917 28,006 12,454 7,728 48,188 Delivery 40,043 8,243 1,902 50,188 56,237 8,016 1,903 66,156 Other (1) (10,362) 17,453 (12,983) (5,892) 27,097 18,749 (12,143) 33,703 Total 333,475 208,243 40,061 581,779 441,818 236,021 48,730 726,569 Eliminations (100,128) (122,478) Consolidated Net Sales $ 481,651 $ 604,091 (1) Primarily includes discounts and allowances, revenue for advertising, royalties, parts, accessories, after-treatment products, surcharges, rebates and other sales incentives. In fiscal 2024, certain amounts that were previously charged as surcharges in fiscal 2023 are now included in the base product pricing and reflected in the amounts by product category. |
Contract with Customer, Contract Assets and Contract Liabilities | The following table presents our contract assets and liabilities: (Unaudited, amounts in thousands) 7/29/2023 4/29/2023 Contract assets $ 41,604 $ 44,939 Customer deposits $ 97,172 $ 105,766 Deferred revenue 41,604 44,939 Total contract liabilities (1) $ 138,776 $ 150,705 (1) During the quarter ended July 29, 2023, we recognized revenue of $126.0 million related to our contract liability balance at April 29, 2023. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Income (Loss) by Segment | The following table presents sales and operating income (loss) by segment: Quarter Ended (Unaudited, amounts in thousands) 7/29/2023 7/30/2022 Sales Wholesale segment: Sales to external customers $ 236,251 $ 323,728 Intersegment sales 97,224 118,090 Wholesale segment sales 333,475 441,818 Retail segment sales 208,243 236,021 Corporate and Other: Sales to external customers 37,157 44,342 Intersegment sales 2,904 4,388 Corporate and Other sales 40,061 48,730 Eliminations (100,128) (122,478) Consolidated sales $ 481,651 $ 604,091 Operating Income (Loss) Wholesale segment $ 23,503 $ 26,142 Retail segment 29,264 38,152 Corporate and Other (18,241) (11,651) Consolidated operating income 34,526 52,643 Interest expense (122) (159) Interest income 3,056 474 Other income (expense), net 556 45 Income before income taxes $ 38,016 $ 53,003 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share: Quarter Ended (Unaudited, amounts in thousands, except per share data) 7/29/2023 7/30/2022 Numerator (basic and diluted): Net income available to common Shareholders $ 27,479 $ 38,488 Denominator: Basic weighted average common shares outstanding 43,239 43,092 Contingent common shares 54 50 Stock option dilution 40 — Diluted weighted average common shares outstanding 43,333 43,142 Earnings per Share: Basic $ 0.64 $ 0.89 Diluted $ 0.63 $ 0.89 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy | The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 29, 2023 and April 29, 2023. There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented. At July 29, 2023 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 11,815 $ — $ 10,694 $ 22,509 Held-to-maturity investments 1,349 — — — 1,349 Total assets $ 1,349 $ 11,815 $ — $ 10,694 $ 23,858 At April 29, 2023 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 16,557 $ — $ 6,995 $ 23,552 Held-to-maturity investments 1,351 — — — 1,351 Total assets $ 1,351 $ 16,557 $ — $ 6,995 $ 24,903 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Millions | 3 Months Ended | |
Jul. 29, 2023 USD ($) company | Jan. 28, 2023 USD ($) | |
Discontinued Operations, Disposed of by Means Other than Sale | Torreon Facility | ||
Variable Interest Entity [Line Items] | ||
Selling, general, and administrative expense | $ 1.2 | $ 9.2 |
Cost of sales | $ 1.6 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Preferred share investments with common share warrant, number of privately-held companies | company | 2 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Prior Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales | $ 275,923 | $ 373,061 |
Gross profit | 205,728 | 231,030 |
Selling, general and administrative expense | $ 171,202 | 178,387 |
Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales | 362,631 | |
Gross profit | 241,460 | |
Selling, general and administrative expense | 188,817 | |
Effect of Change | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales | 10,430 | |
Gross profit | (10,430) | |
Selling, general and administrative expense | $ (10,430) |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 3 Months Ended | |||
Jul. 17, 2023 USD ($) store center | Jul. 18, 2022 USD ($) center store | Jul. 29, 2023 USD ($) | Apr. 29, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible assets and goodwill assets, useful life (in years) | 15 years | |||
Indefinite-lived intangible assets acquired | $ 2,307 | |||
Goodwill | $ 207,488 | $ 205,008 | ||
Colorado Springs, Colorado | Independently-owned Business | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | store | 2 | |||
Number of distribution center acquired | center | 1 | |||
Consideration transferred | $ 6,000 | |||
Cash paid | 4,300 | |||
Indefinite-lived intangible assets acquired | 2,300 | |||
Colorado Springs, Colorado | Independently-owned Business | Retail | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,000 | |||
Denver, Colorado | Independently-owned Business | ||||
Business Acquisition [Line Items] | ||||
Number of distribution center acquired | center | 1 | |||
Consideration transferred | $ 10,100 | |||
Cash paid | 7,700 | |||
Indefinite-lived intangible assets acquired | $ 4,300 | |||
Denver, Colorado | Independently-owned Business | Retail | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | store | 5 | |||
Goodwill | $ 7,600 |
Cash and Restricted Cash (Detai
Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 | Jul. 30, 2022 | Apr. 30, 2022 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 336,434 | $ 343,374 | $ 238,170 | |
Restricted cash | 3,816 | 3,304 | 3,267 | |
Total cash, cash equivalents and restricted cash | $ 340,250 | $ 346,678 | $ 241,437 | $ 248,856 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 119,477 | $ 116,440 |
Work in process | 21,512 | 24,328 |
Finished goods | 174,352 | 181,401 |
FIFO inventories | 315,341 | 322,169 |
Excess of FIFO over LIFO | (45,912) | (45,912) |
Total inventories | $ 269,429 | $ 276,257 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Jul. 29, 2023 USD ($) | |
Roll-forward of goodwill | |
Balance at beginning of period | $ 205,008 |
Acquisitions | 1,951 |
Translation adjustment | 529 |
Balance at end of period | 207,488 |
Corporate and Other | |
Roll-forward of goodwill | |
Balance at beginning of period | 55,446 |
Acquisitions | 0 |
Translation adjustment | 0 |
Balance at end of period | 55,446 |
Goodwill, impairment loss | 26,900 |
Wholesale Segment | Operating Segments | |
Roll-forward of goodwill | |
Balance at beginning of period | 20,202 |
Acquisitions | 0 |
Translation adjustment | 450 |
Balance at end of period | 20,652 |
Retail Segment | Operating Segments | |
Roll-forward of goodwill | |
Balance at beginning of period | 129,360 |
Acquisitions | 1,951 |
Translation adjustment | 79 |
Balance at end of period | $ 131,390 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Jul. 29, 2023 USD ($) | |
Roll-forward of other intangible assets | |
Balance at beginning of period | $ 39,375 |
Acquisitions | 2,307 |
Amortization | (255) |
Translation adjustment | 102 |
Balance at end of period | 41,529 |
Finite-Lived Trade Name | |
Roll-forward of other intangible assets | |
Balance at beginning of period | 2,594 |
Acquisitions | 0 |
Amortization | (200) |
Translation adjustment | 0 |
Balance at end of period | 2,394 |
Other Intangible Assets | |
Roll-forward of other intangible assets | |
Balance at beginning of period | 1,887 |
Acquisitions | 0 |
Amortization | (55) |
Translation adjustment | 42 |
Balance at end of period | 1,874 |
Finite-Lived Trade Name | |
Roll-forward of other intangible assets | |
Balance at beginning of period | 1,155 |
Acquisitions | 0 |
Amortization | 0 |
Translation adjustment | 0 |
Balance at end of period | 1,155 |
Indefinite- Lived Reacquired Rights | |
Roll-forward of other intangible assets | |
Balance at beginning of period | 33,739 |
Acquisitions | 2,307 |
Amortization | 0 |
Translation adjustment | 60 |
Balance at end of period | $ 36,106 |
Corporate and Other | |
Other intangible assets | |
Useful life | 8 years |
Maximum | Wholesale Segment | Operating Segments | |
Other intangible assets | |
Useful life | 15 years |
Investments - Components (Detai
Investments - Components (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Summary of Investment Holdings [Line Items] | ||
Total investments | $ 23,858 | $ 24,903 |
Investments to enhance returns on cash | ||
Summary of Investment Holdings [Line Items] | ||
Total investments | 10,646 | 11,617 |
Investments to fund compensation/retirement plans | ||
Summary of Investment Holdings [Line Items] | ||
Total investments | 13,212 | 13,286 |
Short-term investments | ||
Summary of Investment Holdings [Line Items] | ||
Marketable Securities | 7,402 | 5,043 |
Held-to-maturity investments | 1,349 | 1,351 |
Total investments | 8,751 | 6,394 |
Long-term investments | ||
Summary of Investment Holdings [Line Items] | ||
Marketable Securities | $ 15,107 | $ 18,509 |
Investments - Unrealized Gains
Investments - Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Summary of Investment Holdings [Line Items] | ||
Gross Unrealized Gains | $ 3,073 | $ 2,551 |
Gross Unrealized Losses | (365) | (723) |
Fair Value | 23,858 | 24,903 |
Equity securities | ||
Summary of Investment Holdings [Line Items] | ||
Gross Unrealized Gains | 1,890 | 1,338 |
Gross Unrealized Losses | (68) | (103) |
Fair Value | 7,446 | 6,853 |
Fixed income | ||
Summary of Investment Holdings [Line Items] | ||
Gross Unrealized Gains | 13 | 42 |
Gross Unrealized Losses | (297) | (620) |
Fair Value | 12,545 | 14,039 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Gross Unrealized Gains | 1,170 | 1,171 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 3,867 | $ 4,011 |
Investments - Sales and Maturit
Investments - Sales and Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Sales of Marketable Securities | ||
Proceeds from sales | $ 12,404 | $ 4,246 |
Gross realized gains | 153 | 27 |
Gross realized losses | (459) | $ (56) |
Fair Value of Available-For-Sale Securities By Contractual Maturity | ||
Within one year | 7,398 | |
Within two to five years | 1,899 | |
Within six to ten years | 0 | |
Thereafter | 3,248 | |
Total | $ 12,545 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Apr. 29, 2023 | |
Reconciliation of changes in product warranty liability | |||
Balance as of the beginning of the period | $ 30,984 | $ 27,036 | |
Accruals during the period | 6,665 | 7,826 | |
Settlements during the period | (6,855) | (7,346) | |
Balance as of the end of the period | 30,794 | $ 27,516 | |
Product warranty liability accrued | $ 20,000 | $ 19,900 | |
Minimum | Wholesale Segment | |||
Product Warranties | |||
Percentage of warranty liability relating to the segment | 90% | ||
Fabric and leather | Minimum | Wholesale Segment | |||
Product Warranties | |||
Warranty term (in years) | 1 year | ||
Fabric and leather | Maximum | Wholesale Segment | |||
Product Warranties | |||
Warranty term (in years) | 3 years | ||
Cushions and padding | Minimum | Wholesale Segment | |||
Product Warranties | |||
Warranty term (in years) | 1 year | ||
Cushions and padding | Maximum | Wholesale Segment | |||
Product Warranties | |||
Warranty term (in years) | 10 years | ||
Labor costs relating to parts | Wholesale Segment | |||
Product Warranties | |||
Warranty term (in years) | 1 year |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Stock-based compensation expense recognized for outstanding grants | ||
Equity-based awards expense | $ 2,526 | $ 1,417 |
Liability-based awards expense | 88 | 128 |
Total stock-based compensation expense | $ 2,614 | $ 1,545 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock, Additional Information (Details) - Restricted Stock | 3 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Stock-Based Compensation | |
Number of shares or units granted (in shares) | shares | 330,140 |
Percentage vesting each year from date of grant | 25% |
Period from grant date for first vesting | 1 year |
Fair value per share (in dollars per share) | $ / shares | $ 27.66 |
Minimum | |
Stock-Based Compensation | |
Period of recognition of expenses for retirement-eligible employees from the grant date | 10 months |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares, Additional Information (Details) | 3 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Performance-Based Shares | |
Stock-Based Compensation | |
Number of shares or units granted (in shares) | shares | 219,154 |
Performance Awards | |
Stock-Based Compensation | |
Performance awards, performance period | 3 years |
Performance Awards | Fiscal 2022 Grant | |
Stock-Based Compensation | |
Percentage of payout dependent on financial performance | 50% |
Percentage of payout dependent on total shareholder return | 50% |
Granted (in dollars per share) | $ 25.48 |
Performance Awards | Minimum | |
Stock-Based Compensation | |
Performance award opportunity as a percentage of target award | 50% |
Performance Awards | Maximum | |
Stock-Based Compensation | |
Performance award opportunity as a percentage of target award | 200% |
Performance Based Shares, vesting based on market conditions | Fiscal 2022 Grant | |
Stock-Based Compensation | |
Granted (in dollars per share) | $ 34.15 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options, Additional Information (Details) - Stock Options | 3 Months Ended |
Jul. 29, 2023 | |
Stock-Based Compensation | |
Period of recognition of expenses for retirement-eligible employees from the grant date | 10 months |
Former Long-Term Equity Award Plan | |
Stock-Based Compensation | |
Award expiration term (in years) | 10 years |
Minimum | |
Stock-Based Compensation | |
Vesting period (in years) | 1 year |
Maximum | |
Stock-Based Compensation | |
Vesting period (in years) | 4 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Activity in accumulated other comprehensive loss | ||
Beginning balance | $ 952,097 | $ 819,622 |
Changes before reclassifications | 1,072 | (1,586) |
Amounts reclassified to net income | 338 | 107 |
Tax effect | (80) | (40) |
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated | 1,330 | (1,519) |
Ending balance | 963,930 | 844,092 |
Components of non-controlling interest | ||
Beginning balance | 952,097 | 819,622 |
Net income | 27,926 | 38,940 |
Other comprehensive income (loss) | 1,290 | (2,038) |
Ending balance | 963,930 | 844,092 |
Accumulated other comprehensive income (loss) | ||
Activity in accumulated other comprehensive loss | ||
Beginning balance | (5,528) | (5,797) |
Ending balance | (4,198) | (7,316) |
Components of non-controlling interest | ||
Beginning balance | (5,528) | (5,797) |
Ending balance | (4,198) | (7,316) |
Translation adjustment | ||
Activity in accumulated other comprehensive loss | ||
Beginning balance | (2,652) | (1,961) |
Changes before reclassifications | 1,087 | (1,641) |
Amounts reclassified to net income | 0 | 0 |
Tax effect | 0 | 0 |
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated | 1,087 | (1,641) |
Ending balance | (1,565) | (3,602) |
Components of non-controlling interest | ||
Beginning balance | (2,652) | (1,961) |
Ending balance | (1,565) | (3,602) |
Unrealized gain (loss) on marketable securities | ||
Activity in accumulated other comprehensive loss | ||
Beginning balance | (145) | (298) |
Changes before reclassifications | (15) | 55 |
Amounts reclassified to net income | 307 | 59 |
Tax effect | (72) | (28) |
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated | 220 | 86 |
Ending balance | 75 | (212) |
Components of non-controlling interest | ||
Beginning balance | (145) | (298) |
Ending balance | 75 | (212) |
Net pension amortization and net actuarial loss | ||
Activity in accumulated other comprehensive loss | ||
Beginning balance | (2,731) | (3,538) |
Changes before reclassifications | 0 | 0 |
Amounts reclassified to net income | 31 | 48 |
Tax effect | (8) | (12) |
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated | 23 | 36 |
Ending balance | (2,708) | (3,502) |
Components of non-controlling interest | ||
Beginning balance | (2,731) | (3,538) |
Ending balance | (2,708) | (3,502) |
Non-Controlling Interests | ||
Activity in accumulated other comprehensive loss | ||
Beginning balance | 10,261 | 8,897 |
Ending balance | 10,668 | 8,830 |
Components of non-controlling interest | ||
Beginning balance | 10,261 | 8,897 |
Net income | 447 | 452 |
Other comprehensive income (loss) | (40) | (519) |
Ending balance | $ 10,668 | $ 8,830 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Revenue Recognition | ||
Sales | $ 481,651 | $ 604,091 |
Wholesale Segment | ||
Revenue Recognition | ||
Sales | 236,251 | 323,728 |
Operating Segments | ||
Revenue Recognition | ||
Sales | 581,779 | 726,569 |
Operating Segments | Upholstered Furniture | ||
Revenue Recognition | ||
Sales | 500,566 | 578,522 |
Operating Segments | Casegoods Furniture | ||
Revenue Recognition | ||
Sales | 36,917 | 48,188 |
Operating Segments | Delivery | ||
Revenue Recognition | ||
Sales | 50,188 | 66,156 |
Operating Segments | Other | ||
Revenue Recognition | ||
Sales | (5,892) | 33,703 |
Operating Segments | Wholesale Segment | ||
Revenue Recognition | ||
Sales | 333,475 | 441,818 |
Operating Segments | Wholesale Segment | Upholstered Furniture | ||
Revenue Recognition | ||
Sales | 283,418 | 330,478 |
Operating Segments | Wholesale Segment | Casegoods Furniture | ||
Revenue Recognition | ||
Sales | 20,376 | 28,006 |
Operating Segments | Wholesale Segment | Delivery | ||
Revenue Recognition | ||
Sales | 40,043 | 56,237 |
Operating Segments | Wholesale Segment | Other | ||
Revenue Recognition | ||
Sales | (10,362) | 27,097 |
Operating Segments | Retail | ||
Revenue Recognition | ||
Sales | 208,243 | 236,021 |
Operating Segments | Retail | Upholstered Furniture | ||
Revenue Recognition | ||
Sales | 170,714 | 196,802 |
Operating Segments | Retail | Casegoods Furniture | ||
Revenue Recognition | ||
Sales | 11,833 | 12,454 |
Operating Segments | Retail | Delivery | ||
Revenue Recognition | ||
Sales | 8,243 | 8,016 |
Operating Segments | Retail | Other | ||
Revenue Recognition | ||
Sales | 17,453 | 18,749 |
Corporate and Other | ||
Revenue Recognition | ||
Sales | 40,061 | 48,730 |
Corporate and Other | Upholstered Furniture | ||
Revenue Recognition | ||
Sales | 46,434 | 51,242 |
Corporate and Other | Casegoods Furniture | ||
Revenue Recognition | ||
Sales | 4,708 | 7,728 |
Corporate and Other | Delivery | ||
Revenue Recognition | ||
Sales | 1,902 | 1,903 |
Corporate and Other | Other | ||
Revenue Recognition | ||
Sales | (12,983) | (12,143) |
Eliminations | ||
Revenue Recognition | ||
Sales | $ (100,128) | $ (122,478) |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 41,604 | $ 44,939 |
Customer deposits | 97,172 | 105,766 |
Deferred revenue | 41,604 | 44,939 |
Total contract liabilities | 138,776 | $ 150,705 |
Revenue recognized related to contract liabilities | $ 126,000 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Jul. 29, 2023 segment brand store | |
Wholesale Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Wholesale Segment | Casegoods | |
Segment Reporting Information [Line Items] | |
Number of brands | brand | 3 |
Retail Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Number of stores | store | 175 |
Segment Information - Income St
Segment Information - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 481,651 | $ 604,091 |
Operating Income (Loss) | 34,526 | 52,643 |
Interest expense | (122) | (159) |
Interest income | 3,056 | 474 |
Other income (expense), net | 556 | 45 |
Income before income taxes | 38,016 | 53,003 |
Wholesale Segment | ||
Segment Reporting Information [Line Items] | ||
Sales | 236,251 | 323,728 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 581,779 | 726,569 |
Operating Segments | Wholesale Segment | ||
Segment Reporting Information [Line Items] | ||
Sales | 333,475 | 441,818 |
Operating Income (Loss) | 23,503 | 26,142 |
Operating Segments | Retail Segment | ||
Segment Reporting Information [Line Items] | ||
Sales | 208,243 | 236,021 |
Operating Income (Loss) | 29,264 | 38,152 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Sales | 40,061 | 48,730 |
Operating Income (Loss) | (18,241) | (11,651) |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Sales | 37,157 | 44,342 |
Intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,904 | 4,388 |
Intersegment sales | Wholesale Segment | ||
Segment Reporting Information [Line Items] | ||
Sales | 97,224 | 118,090 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Sales | $ (100,128) | $ (122,478) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 26.50% | 26.50% |
Statutory tax rate | 21% |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Numerator (basic and diluted): | ||
Net income available to common Shareholders | $ 27,479 | $ 38,488 |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 43,239 | 43,092 |
Contingent common shares (in shares) | 54 | 50 |
Stock option dilution (in shares) | 40 | 0 |
Diluted weighted average common shares outstanding (in shares) | 43,333 | 43,142 |
Earnings per Share: | ||
Basic (in dollars per share) | $ 0.64 | $ 0.89 |
Diluted (in dollars per share) | $ 0.63 | $ 0.89 |
Earnings per Share - Antidiluti
Earnings per Share - Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Outstanding options | ||
Anti-dilutive options | ||
Outstanding options excluded from diluted share calculation (in shares) | 0.7 | 1.5 |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy and Transfers (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Apr. 29, 2023 |
Assets | ||
Total assets | $ 23,858 | $ 24,903 |
Recurring basis | ||
Assets | ||
Marketable securities | 22,509 | 23,552 |
Held-to-maturity investments | 1,349 | 1,351 |
Total assets | 23,858 | 24,903 |
Recurring basis | Level 1 | ||
Assets | ||
Marketable securities | 0 | 0 |
Held-to-maturity investments | 1,349 | 1,351 |
Total assets | 1,349 | 1,351 |
Recurring basis | Level 2 | ||
Assets | ||
Marketable securities | 11,815 | 16,557 |
Held-to-maturity investments | 0 | 0 |
Total assets | 11,815 | 16,557 |
Recurring basis | Level 3 | ||
Assets | ||
Marketable securities | 0 | 0 |
Held-to-maturity investments | 0 | 0 |
Total assets | 0 | 0 |
Recurring basis | NAV | ||
Assets | ||
Marketable securities | 10,694 | 6,995 |
Held-to-maturity investments | 0 | 0 |
Total assets | $ 10,694 | $ 6,995 |