La-Z-Boy Incorporated’s Q3 2025 Earnings Conference Call: A Cozy Chat with Company Executives
On a chilly February morning in 2025, investors and financial analysts gathered around their screens for a warm and inviting conference call with La-Z-Boy Incorporated (NYSE: LZB). The furniture manufacturer and retailer, known for its iconic recliners, shared the latest financial results and insights from the third quarter of their fiscal year. Let’s snuggle up and eavesdrop on this engaging conversation.
Company Participants
- Mark Becks – Director, Investor Relations and Corporate Development
- Melinda Whittington – Chair, President and CEO
- Taylor Luebke – Senior Vice President and CFO
- Bob Lucian – Retiring Chief Financial Officer
Conference Call Participants
- Brad Thomas – KeyBanc Capital
- Bobby Griffin – Raymond James
- Anthony Lebiedzinski – Sidoti & Company
Operator: Good morning. And welcome to the La-Z-Boy Fiscal 2025 Third Quarter Conference Call.
Mark Becks, Director, Investor Relations and Corporate Development
Mark Becks: “Thank you, operator, and welcome, everyone, to our third quarter conference call. I’m joined today by Melinda Whittington, our Chair, President, and CEO; Taylor Luebke, our Senior Vice President and CFO; and Bob Lucian, our retiring CFO. Before we dive into the financial results, I’d like to take a moment to acknowledge that Bob will be retiring at the end of the fiscal year. We’re grateful for his contributions and dedication to La-Z-Boy over the past decade.”
Melinda Whittington, Chair, President, and CEO
Melinda Whittington: “Thanks, Mark. Third quarter sales came in at $568 million, up 7% compared to the same period last year. Our retail segment sales increased by 8%, driven by a 12% increase in comparable store sales. Our e-commerce sales continued to grow, up 17% from last year. Gross margin expanded 120 basis points to 36.3%, primarily due to improved product mix and cost savings initiatives.”
Taylor Luebke, Senior Vice President and CFO
Taylor Luebke: “Revenue growth was strong, and our operating income increased by 14% to $72.8 million. Our effective tax rate was 24.5%, up from 23.2% last year due to changes in tax laws. Diluted earnings per share came in at $0.65, up from $0.59 last year.”
Bob Lucian, Retiring Chief Financial Officer
Bob Lucian: “Before I sign off, I’d like to express my gratitude to the La-Z-Boy team for the opportunity to be a part of this incredible company. I’m confident that Melinda, Taylor, and the entire team will continue to drive growth and success.”
Implications for You
As an investor, the strong sales growth and improved gross margin expansion are positive signs for La-Z-Boy’s financial health. The company’s focus on e-commerce sales and comparable store sales is a strategic move to cater to changing consumer preferences. These trends could potentially lead to increased stock value and dividends for shareholders.
Implications for the World
La-Z-Boy’s success in the third quarter is a reflection of the growing importance of comfort and home improvement in a post-pandemic world. The company’s focus on both retail and e-commerce sales shows adaptability to changing consumer trends. This could lead to a shift in the furniture industry towards more online sales and a renewed emphasis on comfort and quality in home furnishings.
Conclusion
La-Z-Boy’s third quarter earnings call provided investors with a cozy and warm update on the company’s financial performance. With strong sales growth, improved gross margin, and a focus on both retail and e-commerce sales, La-Z-Boy is well-positioned for continued success in a post-pandemic world. Meanwhile, the furniture industry as a whole could see a shift towards more online sales and a renewed emphasis on comfort and quality in home furnishings. So, sit back, relax, and let the comfort revolution continue.
