Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 28, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

COMMISSION FILE NUMBER 1-9656

LA-Z-BOY INCORPORATED

(Exact name of registrant as specified in its charter)


Michigan						38-0751137
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One La-Z-Boy Drive,

Monroe,

Michigan

48162-5138

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code (734) 242-1444

None

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 Par Value

LZB

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


Class						Outstanding at November 22, 2023
Common Stock, $1.00 Par Value						42,779,520

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LA-Z-BOY INCORPORATED

FORM 10-Q SECOND QUARTER OF FISCAL 2024

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		Page Number
PART I Financial Information (Unaudited)		3
Item 1.	Financial Statements	3
	Consolidated Statement of Income	3
	Consolidated Statement of Comprehensive Income	4
	Consolidated Balance Sheet	5
	Consolidated Statement of Cash Flows	6
	Consolidated Statement of Changes in Equity	7
	Notes to Consolidated Financial Statements	8
	Note 1. Basis of Presentation	8
	Note 2. Acquisitions	8
	Note 3. Cash and Restricted Cash	10
	Note 4. Inventories	10
	Note 5. Goodwill and Other Intangible Assets	10
	Note 6. Investments	11
	Note 7. Product Warranties	12
	Note 8. Stock-Based Compensation	13
	Note 9. Accumulated Other Comprehensive Loss	14
	Note 10. Revenue Recognition	15
	Note 11. Segment Information	16
	Note 12. Income Taxes	18
	Note 13. Earnings per Share	19
	Note 14. Fair Value Measurements	19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Cautionary Note Regarding Forward-Looking Statements	21
	Introduction	21
	Results of Operations	24
	Liquidity and Capital Resources	27
	Critical Accounting Policies	29
	Recent Accounting Pronouncements	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30

PART II Other Information		31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	31
Item 5.	Other Information	31
Item 6.	Exhibits	32

Signature Page		33

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PART I - FINANCIAL INFORMATION (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Sales	$	511,435	$	611,332	$	993,086	$	1,215,423
Cost of sales	288,830		361,848		564,753		734,909
Gross profit	222,605		249,484		428,333		480,514
Selling, general and administrative expense	188,993		187,601		360,195		365,988
Operating income	33,612		61,883		68,138		114,526
Interest expense	(101)		(119)		(223)		(278)
Interest income	4,042		1,138		7,098		1,612


Other income (expense), net	104		183		660		228
Income before income taxes	37,657		63,085		75,673		116,088
Income tax expense	9,963		16,306		20,053		30,369
Net income	27,694		46,779		55,620		85,719
Net income attributable to noncontrolling interests	(495)		(702)		(942)		(1,154)
Net income attributable to La-Z-Boy Incorporated	$	27,199	$	46,077	$	54,678	$	84,565

Basic weighted average common shares	43,008		43,104		43,123		43,098
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.63	$	1.07	$	1.27	$	1.96

Diluted weighted average common shares	43,401		43,182		43,479		43,174
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.63	$	1.07	$	1.26	$	1.96

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Net income	$	27,694	$	46,779	$	55,620	$	85,719
Other comprehensive income (loss)
Currency translation adjustment	(3,615)		(3,353)		(2,568)		(5,513)

Net unrealized gain (loss) on marketable securities, net of tax	(87)		(289)		133		(203)
Net pension amortization, net of tax	24		37		47		73
Total other comprehensive income (loss)	(3,678)		(3,605)		(2,388)		(5,643)
Total comprehensive income before noncontrolling interests	24,016		43,174		53,232		80,076
Comprehensive (income) loss attributable to noncontrolling interests	(11)		(298)		(418)		(231)
Comprehensive income attributable to La-Z-Boy Incorporated	$	24,005	$	42,876	$	52,814	$	79,845

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET


(Unaudited, amounts in thousands, except par value)	10/28/2023		4/29/2023
Current assets
Cash and equivalents	$	329,632	$	343,374
Restricted cash	3,835		3,304
Receivables, net of allowance of $4,714 at 10/28/2023 and $4,776 at 4/29/2023	134,394		125,536
Inventories, net	268,480		276,257
Other current assets	104,675		106,129
Total current assets	841,016		854,600
Property, plant and equipment, net	270,682		278,578
Goodwill	208,473		205,008
Other intangible assets, net	41,515		39,375
Deferred income taxes – long-term	8,477		8,918
Right of use lease assets	452,232		416,269
Other long-term assets, net	57,630		63,515
Total assets	$	1,880,025	$	1,866,263

Current liabilities
Accounts payable	$	98,088	$	107,460


Lease liabilities, short-term	77,401		77,751
Accrued expenses and other current liabilities	256,325		290,650
Total current liabilities	431,814		475,861

Lease liabilities, long-term	406,458		368,163
Other long-term liabilities	67,963		70,142
Shareholders' equity
Preferred shares – 5,000 authorized; none issued	—		—
Common shares, $1.00 par value – 150,000 authorized; 42,875 outstanding at 10/28/2023 and 43,318 outstanding at 4/29/2023	42,875		43,318
Capital in excess of par value	361,409		358,891
Retained earnings	567,391		545,155
Accumulated other comprehensive loss	(7,392)		(5,528)
Total La-Z-Boy Incorporated shareholders' equity	964,283		941,836
Noncontrolling interests	9,507		10,261
Total equity	973,790		952,097
Total liabilities and equity	$	1,880,025	$	1,866,263

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS


	Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022
Cash flows from operating activities
Net income	$	55,620	$	85,719
Adjustments to reconcile net income to cash provided by operating activities
(Gain)/loss on disposal and impairment of assets	559		1

(Gain)/loss on sale of investments	(1,136)		77
Provision for doubtful accounts	44		694
Depreciation and amortization	25,092		19,258
Amortization of right-of-use lease assets	37,285		38,580
Lease impairment/(settlement)	(1,175)		—
Equity-based compensation expense	7,337		5,079
Change in deferred taxes	(340)		27



Change in receivables	(9,843)		19,550
Change in inventories	9,757		(36,771)
Change in other assets	(1,361)		4,890
Change in payables	(4,040)		8,027
Change in lease liabilities	(38,121)		(39,380)
Change in other liabilities	(22,802)		(74,797)
Net cash provided by operating activities	56,876		30,954

Cash flows from investing activities
Proceeds from disposals of assets	4,037		63

Capital expenditures	(26,501)		(40,442)
Purchases of investments	(17,485)		(4,714)
Proceeds from sales of investments	21,956		12,660
Acquisitions	(7,311)		(11,705)
Net cash used for investing activities	(25,304)		(44,138)

Cash flows from financing activities

Payments on debt and finance lease liabilities	(206)		(61)

Holdback payments for acquisitions	(5,000)		(5,000)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	(1,859)		(1,711)
Repurchases of common stock	(20,014)		(5,004)
Dividends paid to shareholders	(15,632)		(14,161)
Dividends paid to minority interest joint venture partners (1)	(1,172)		—
Net cash used for financing activities	(43,883)		(25,937)

Effect of exchange rate changes on cash and equivalents	(900)		(1,841)
Change in cash, cash equivalents and restricted cash	(13,211)		(40,962)
Cash, cash equivalents and restricted cash at beginning of period	346,678		248,856
Cash, cash equivalents and restricted cash at end of period	$	333,467	$	207,894

Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	3,079	$	4,251

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

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


(Unaudited, amounts in thousands)	Common Shares		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interests		Total
At April 29, 2023	$	43,318	$	358,891	$	545,155	$	(5,528)	$	10,261	$	952,097
Net income	—		—		27,479		—		447		27,926
Other comprehensive income (loss)	—		—		—		1,330		(40)		1,290
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	149		(221)		(1,906)		—		—		(1,978)
Repurchases of 357 shares of common stock	(357)		(4,512)		(5,138)		—		—		(10,007)
Stock option and restricted stock expense	—		2,526		—		—		—		2,526
Dividends declared and paid ($0.1815/share)	—		—		(7,852)		—		—		(7,852)
Dividends declared not paid ($0.1815/share)	—		—		(72)		—		—		(72)
At July 29, 2023	$	43,110	$	356,684	$	557,666	$	(4,198)	$	10,668	$	963,930
Net income	—		—		27,199		—		495		27,694
Other comprehensive income (loss)	—		—		—		(3,194)		(484)		(3,678)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	91		32		(4)		—		—		119
Repurchases of 326 shares of common stock	(326)		(118)		(9,561)		—		—		(10,005)
Stock option and restricted stock expense	—		4,811		—		—		—		4,811


Dividends declared and paid ($0.1815/share) (1)	—		—		(7,780)		—		(1,172)		(8,952)
Dividends declared not paid ($0.1815/share)					(129)		—		—		(129)
At October 28, 2023	$	42,875	$	361,409	$	567,391	$	(7,392)	$	9,507	$	973,790

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


(Unaudited, amounts in thousands)	Common Shares		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Non-Controlling Interests		Total
At April 30, 2022	$	43,089	$	342,252	$	431,181	$	(5,797)	$	8,897	$	819,622
Net income	—		—		38,488		—		452		38,940
Other comprehensive loss	—		—		—		(1,519)		(519)		(2,038)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	151		(194)		(1,660)		—		—		(1,703)
Repurchases of 204 shares of common stock	(204)		—		(4,800)		—		—		(5,004)
Stock option and restricted stock expense	—		1,417		—		—		—		1,417
Dividends declared and paid ($0.165/share)	—		—		(7,097)		—		—		(7,097)
Dividends declared not paid ($0.165/share)	—		—		(45)		—		—		(45)
At July 30, 2022	$	43,036	$	343,475	$	456,067	$	(7,316)	$	8,830	$	844,092
Net income	—		—		46,077		—		702		46,779
Other comprehensive loss	—		—		—		(3,201)		(404)		(3,605)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	100		(101)		(7)		—		—		(8)

Stock option and restricted stock expense	—		3,662		—		—		—		3,662

Dividends declared and paid ($0.165/share)	—		—		(7,064)		—		—		(7,064)
Dividends declared not paid ($0.165/share)	—		—		(70)		—		—		(70)
At October 29, 2022	$	43,136	$	347,036	$	495,003	$	(10,517)	$	9,128	$	883,786

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1: 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 October 28, 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 2023-05

Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Fiscal 2025

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.

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(Unaudited, amounts in thousands)	For the Quarter Ended October 29, 2022						For the Six Months Ended October 29, 2022
	Previously Reported		Effect of Change		As Adjusted		Previously Reported		Effect of Change		As Adjusted
Cost of sales	$	350,596	$	11,252	$	361,848	$	713,227	$	21,682	$	734,909
Gross profit	260,736		(11,252)		249,484		502,196		(21,682)		480,514
Selling, general and administrative expense	198,853		(11,252)		187,601		387,670		(21,682)		365,988

Note 2: 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.

Lafayette, Louisiana Acquisition

On October 23, 2023, we completed our acquisition of the Lafayette Louisiana business that operates one independently owned La-Z-Boy Furniture Galleries® store and one distribution center for $2.8 million, inclusive of and subject to further customary adjustments. We paid total cash of $1.8 million during the second quarter of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $0.7 million related to the reacquired rights described above. We also recognized $2.1 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies.

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, inclusive of and subject to further to customary adjustments. We paid total cash of $5.6 million during the first and second quarters of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $2.1 million related to the reacquired rights described above. We also recognized $2.2 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

Spokane, Washington Acquisition

On September 26, 2022, we completed our acquisition of the Spokane, Washington business that operates one independently owned La-Z-Boy Furniture Galleries® store and one distribution center for $4.7 million, inclusive of customary adjustments. We paid total cash of $4.0 million during the second quarter of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $1.2 million related to the reacquired rights described above. We also recognized

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$3.0 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies.

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® stores and one distribution center for $10.1 million, inclusive of customary adjustments. We paid total cash of $7.7 million during the first and second quarters of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $4.3 million related to the reacquired rights described above. We also recognized $7.6 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.

Note 3: 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)	10/28/2023		10/29/2022
Cash and cash equivalents	$	329,632	$	204,626
Restricted cash	3,835		3,268
Total cash, cash equivalents and restricted cash	$	333,467	$	207,894

Note 4: Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Raw materials	$	125,211	$	116,440
Work in process	20,607		24,328
Finished goods	168,574		181,401
FIFO inventories	314,392		322,169
Excess of FIFO over LIFO	(45,912)		(45,912)
Total inventories	$	268,480	$	276,257

Note 5: 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

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The following table summarizes changes in the carrying amount of our goodwill by reportable segment:


(Unaudited, amounts in thousands)	Wholesale Segment		Retail Segment		Corporate and Other		Total Goodwill
Balance at April 29, 2023 (1)	$	20,202	$	129,360	$	55,446	$	205,008
Acquisitions	—		4,273		—		4,273
Translation adjustment	(725)		(83)		—		(808)
Balance at October 28, 2023 (1)	$	19,477	$	133,550	$	55,446	$	208,473

(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-year useful life

The following summarizes changes in our intangible assets:


(Unaudited, amounts in thousands)	Indefinite- Lived Trade Names		Finite-Lived Trade Name		Indefinite- Lived Reacquired Rights		Other Intangible Assets		Total Intangible Assets
Balance at April 29, 2023	$	1,155	$	2,594	$	33,739	$	1,887	$	39,375
Acquisitions	—		—		2,773		—		2,773
Amortization	—		(399)				(109)		(508)
Translation adjustment	—		—		(61)		(64)		(125)
Balance at October 28, 2023	$	1,155	$	2,195	$	36,451	$	1,714	$	41,515

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.

Note 6: 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.

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The following summarizes our investments:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Short-term investments:
Marketable securities	$	6,500	$	5,043
Held-to-maturity investments	1,285		1,351
Total short-term investments	7,785		6,394
Long-term investments:
Marketable securities	13,556		18,509


Total investments	$	21,341	$	24,903

Investments to enhance returns on cash	$	8,652	$	11,617
Investments to fund compensation/retirement plans	12,689		13,286

Total investments	$	21,341	$	24,903

The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type:


	10/28/2023						4/29/2023
(Unaudited, amounts in thousands)	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Equity securities	$	—	$	(138)	$	3,805	$	1,338	$	(103)	$	6,853
Fixed income	—		(400)		13,714		42		(620)		14,039
Other	1,165		—		3,822		1,171		—		4,011
Total securities	$	1,165	$	(538)	$	21,341	$	2,551	$	(723)	$	24,903

The following table summarizes sales of marketable securities:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Proceeds from sales	$	8,064	$	8,418	$	20,468	$	12,664
Gross realized gains	1,715		22		1,876		49
Gross realized losses	(272)		(70)		(740)		(126)

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)	10/28/2023
Within one year	$	6,405
Within two to five years	961


Securities not due at a single maturity date	6,348
Total	$	13,714

Note 7: 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 to three years on fabric and leather, from one to ten years on cushions and padding, and provide a limited lifetime warranty on certain mechanisms and frames, unless otherwise noted in the warranty. Additionally, our Wholesale segment warranties cover labor costs relating to our parts for one year. We provide a limited lifetime warranty against defects on a majority of Joybird products, which are a part of our Corporate and Other results. For all our manufacturer warranties, the

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warranty period begins when the consumer receives our product. We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known.

A reconciliation of the changes in our product warranty liability is as follows:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023 (1)		10/29/2022
Balance as of the beginning of the period	$	30,794	$	27,516	$	30,984	$	27,036

Accruals during the period	6,957		8,453		13,622		16,279
Settlements during the period	(6,624)		(7,612)		(13,479)		(14,958)
Balance as of the end of the period	$	31,127	$	28,357	$	31,127	$	28,357

(1)$20.1 million and $19.9 million is recorded in accrued expenses and other current liabilities as of October 28, 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.

Note 8: 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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Equity-based awards expense	$	4,811	$	3,662	$	7,337	$	5,079
Liability-based awards expense (1)	(35)		18		53		146
Total stock-based compensation expense	$	4,776	$	3,680	$	7,390	$	5,225

(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. During the first quarter of fiscal 2024, we granted 330,140 shares of restricted stock units to employees 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 fiscal 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 six months of fiscal 2024 was $27.66 per share, the market value of our common shares on the date of grant.

Restricted Stock Units Issued to Directors. During the first six months of fiscal 2024, we granted 35,736 restricted stock units to our non-employee directors. Restricted stock units granted to our non-employee directors are offered at no cost to the directors and restricted stock units granted following August 2022 vest on the earlier of the date a director ceases to be a member of the board (for any reason other than the termination of service for cause) or the-one year anniversary of the grant date. We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock. We measure and recognize compensation expense for these awards based on the market price of our common shares on the date of grant. The weighted-average fair value of the restricted stock units granted to our non-employee directors in the first six months of fiscal 2024 was $30.80 per share.

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

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target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

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 to four years, with accelerated vesting upon retirement. The vesting date for retirement-eligible employees is the later of the date they meet the criteria for retirement or ten months after the grant date. We accelerate the expense for options 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. Granted options outstanding under the former long-term equity award plan remain in effect and have a term of 10 years. We estimated the fair value of the employee stock options granted in prior years at their respective grant date using the Black-Scholes option-pricing model, which requires management to make certain assumptions.

Note 9: Accumulated Other Comprehensive Income (Loss)

Activity in accumulated other comprehensive income (loss) for the quarters ended October 28, 2023, and October 29, 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 July 29, 2023	$	(1,565)	$	75	$	(2,708)	$	(4,198)
Changes before reclassifications	(3,131)		(139)		—		(3,270)


Amounts reclassified to net income	—		24		31		55
Tax effect	—		28		(7)		21
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(3,131)		(87)		24		(3,194)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at July 30, 2022	$	(3,602)	$	(212)	$	(3,502)	$	(7,316)
Changes before reclassifications	(2,949)		(445)		—		(3,394)


Amounts reclassified to net income	—		62		48		110
Tax effect	—		94		(11)		83
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,949)		(289)		37		(3,201)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

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Activity in accumulated other comprehensive income (loss) for the six months ended October 28, 2023 and October 29, 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	(2,044)		(154)		—		(2,198)


Amounts reclassified to net income	—		331		62		393
Tax effect	—		(44)		(15)		(59)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,044)		133		47		(1,864)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at April 30, 2022	$	(1,961)	$	(298)	$	(3,538)	$	(5,797)
Changes before reclassifications	(4,590)		(390)		—		(4,980)


Amounts reclassified to net income	—		121		96		217
Tax effect	—		66		(23)		43
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(4,590)		(203)		73		(4,720)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Balance as of the beginning of the period	$	10,668	$	8,830	$	10,261	$	8,897
Net income	495		702		942		1,154
Other comprehensive loss	(484)		(404)		(524)		(923)
Dividends distributed to joint venture minority partners	(1,172)		—		(1,172)		—
Balance as of the end of the period	$	9,507	$	9,128	$	9,507	$	9,128

Note 10: 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.

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The following table presents our revenue disaggregated by product category and by segment or unit:


	Quarter Ended October 28, 2023								Quarter Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	314,771	$	172,989	$	42,996	$	530,756	$	337,997	$	207,228	$	46,438	$	591,663
Casegoods Furniture	20,352		12,942		4,248		37,542		30,545		15,419		6,541		52,505
Delivery	43,655		8,869		1,755		54,279		56,538		8,172		2,100		66,810
Other (1)	(13,811)		19,509		(12,767)		(7,069)		21,151		21,333		(11,442)		31,042
Total	$	364,967	$	214,309	$	36,232	$	615,508	$	446,231	$	252,152	$	43,637	$	742,020

Eliminations							(104,073)								(130,688)
Consolidated Net Sales							$	511,435							$	611,332

	Six Months Ended October 28, 2023								Six Months Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	598,189	$	343,703	$	89,430	$	1,031,322	$	668,475	$	404,030	$	97,680	$	1,170,185
Casegoods Furniture	40,728		24,775		8,956		74,459		58,551		27,873		14,269		100,693
Delivery	83,698		17,112		3,657		104,467		112,775		16,188		4,003		132,966
Other (1)	(24,173)		36,962		(25,750)		(12,961)		48,248		40,082		(23,585)		64,745
Total	$	698,442	$	422,552	$	76,293	$	1,197,287	$	888,049	$	488,173	$	92,367	$	1,468,589

Eliminations							(204,201)								(253,166)
Consolidated Net Sales							$	993,086							$	1,215,423

(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)	10/28/2023		4/29/2023
Contract assets	$	35,206	$	44,939

Customer deposits	$	93,221	$	105,766
Deferred revenue	35,206		44,939
Total contract liabilities (1)	$	128,427	$	150,705

(1)During the six months ended October 28, 2023, we recognized revenue of $137.4 million related to our contract liability balance at April 29, 2023.

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Note 11: 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 177 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.

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The following table presents sales and operating income (loss) by segment:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Sales
Wholesale segment:
Sales to external customers	$	263,738	$	319,613	$	499,989	$	643,341
Intersegment sales	101,229		126,618		198,453		244,708
Wholesale segment sales	364,967		446,231		698,442		888,049

Retail segment sales	214,309		252,152		422,552		488,173

Corporate and Other:
Sales to external customers	33,388		39,567		70,545		83,909
Intersegment sales	2,844		4,070		5,748		8,458
Corporate and Other sales	36,232		43,637		76,293		92,367

Eliminations	(104,073)		(130,688)		(204,201)		(253,166)
Consolidated sales	$	511,435	$	611,332	$	993,086	$	1,215,423

Operating Income (Loss)
Wholesale segment	$	21,450	$	38,476	$	44,953	$	64,618
Retail segment	27,935		41,500		57,199		79,652
Corporate and Other	(15,773)		(18,093)		(34,014)		(29,744)
Consolidated operating income	33,612		61,883		68,138		114,526
Interest expense	(101)		(119)		(223)		(278)
Interest income	4,042		1,138		7,098		1,612
Other income (expense), net	104		183		660		228
Income before income taxes	$	37,657	$	63,085	$	75,673	$	116,088

Note 12: Income Taxes

Our effective tax rate was 26.5% for both the second quarter and first six months ended October 28, 2023 compared with 25.8% and 26.2% for the second quarter and first six months ended October 29, 2022, respectively. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

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Note 13: 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				Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Numerator (basic and diluted):


Net income available to common Shareholders	$	27,199	$	46,077	$	54,678	$	84,565

Denominator:
Basic weighted average common shares outstanding	43,008		43,104		43,123		43,098
Contingent common shares	296		78		289		76
Stock option dilution	97		—		67		—
Diluted weighted average common shares outstanding (1)	43,401		43,182		43,479		43,174

Earnings per Share:
Basic	$	0.63	$	1.07	$	1.27	$	1.96
Diluted	$	0.63	$	1.07	$	1.26	$	1.96

(1)Diluted earnings per share was computed using the treasury stock method.

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 second quarter and six months ended October 28, 2023, we excluded options to purchase 0.5 million shares and 0.7 million shares, respectively, from the diluted share calculation. For the second quarter and six months ended October 29, 2022, we excluded options to purchase 1.5 million shares from the diluted share calculation.

Note 14: 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.

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The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at October 28, 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 October 28, 2023
	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3		NAV(1)		Total
Assets
Marketable securities	$	—	$	9,903	$	—	$	10,153	$	20,056
Held-to-maturity investments	1,285		—		—		—		1,285

Total assets	$	1,285	$	9,903	$	—	$	10,153	$	21,341


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 October 28, 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.

The fair value measurements for our Level 1 and Level 2 securities are based on quoted prices in active markets, as well as through broker quotes and independent valuation providers, multiplied by the number of shares owned exclusive of any transaction costs.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We have prepared this Management’s Discussion and Analysis as an aid to understanding our financial results. It should be read in conjunction with the accompanying Consolidated Financial Statements and related Notes to Consolidated Financial Statements. After a cautionary note regarding forward-looking statements, we begin with an introduction to our key businesses and then provide discussions of our results of operations, liquidity and capital resources, and critical accounting policies.

Cautionary Note Regarding Forward-Looking Statements

La-Z-Boy Incorporated and its subsidiaries (individually and collectively, "we," "our," "us," "La-Z-Boy" or the "Company") make "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements may include words such as "aim," "anticipates," "believes," "continues," "estimates," "expects," "feels," "forecasts," "hopes," "intends," "plans," "projects," "likely," "seeks," "short-term," "non-recurring," "one-time," "outlook," "target," "unusual," or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," or "may." A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on forward-looking statements, which speak to our views only as of the date of this report. These forward-looking statements are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial performance.

Our actual future results and trends may differ materially from those we anticipate depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Annual Report for the fiscal year ended April 29, 2023, under Item 1A, "Risk Factors" and Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and in our other filings with the Securities and Exchange Commission ("SEC"). Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in our Annual Report for the fiscal year ended April 29, 2023 or any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

Introduction

Our Business

We are the leading global producer of reclining chairs and the second largest manufacturer/distributor of residential furniture in the United States. The La-Z-Boy Furniture Galleries® stores retail network is the third largest retailer of single-branded furniture in the United States. We manufacture, market, import, export, distribute and retail upholstery furniture products under the La-Z-Boy®, England, Kincaid®, and Joybird® tradenames. In addition, we import, distribute and retail accessories and casegoods (wood) furniture products under the Kincaid®, American Drew®, Hammary®, and Joybird® tradenames.

As of October 28, 2023, our supply chain operations included the following:

•Five major manufacturing locations and 14 distribution centers in the United States and four facilities in Mexico to support our speed-to-market and customization strategy

•A logistics company that distributes a portion of our products in the United States

•A wholesale sales office that is responsible for distribution of our product in the United Kingdom and Ireland

•An upholstery manufacturing business in the United Kingdom

•A global trading company in Hong Kong which helps us manage our Asian supply chain by establishing and maintaining relationships with our Asian suppliers, as well as identifying efficiencies and savings opportunities

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During the third quarter of fiscal 2023, we made the decision to close our manufacturing facility in Torreón, Mexico as part of our initiative to drive improved efficiencies through optimized staffing levels within our plants. As a result of this action, charges were recorded within the Wholesale segment in the third and fourth quarters of fiscal 2023, totaling $9.2 million in selling, general and administrative ("SG&A") expense for the impairment of various assets, primarily long-lived assets, and $1.6 million in cost of sales, primarily related to severance. During the first quarter of fiscal 2024, we terminated our lease on the Torreón facility and recognized a $1.2 million gain in SG&A expense within the Wholesale segment related to the settlement of our lease obligation on the previously impaired long-lived assets.

During the second quarter of fiscal 2024, we announced further actions intended to drive efficiencies and optimize our manufacturing capacity in our global supply chain operations. As part of this initiative, we made the decision to shift upholstery production from our Ramos, Mexico operations to our other upholstery plants and relocate our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. As a result of these actions, charges were recorded within the Wholesale segment in the second quarter of fiscal 2024, totaling $3.6 million in cost of sales, primarily related to severance, and $3.0 million in SG&A expense for the accelerated depreciation of fixed assets.

We also participate in two consolidated joint ventures in Thailand that support our international businesses: one that operates a manufacturing facility and another that operates a wholesale sales office. Additionally, we have contracts with several suppliers in Asia to produce products that support our pure import model for casegoods.

We sell our products through multiple channels: to furniture retailers or distributors in the United States, Canada, and approximately 50 other countries, including the United Kingdom, China, Australia, South Korea and New Zealand, directly to consumers through retail stores that we own and operate, and through our websites, www.la-z-boy.com and www.joybird.com.

•The centerpiece of our retail distribution strategy is our network of 353 La-Z-Boy Furniture Galleries® stores and 521 La-Z-Boy Comfort Studio® locations, each dedicated to marketing our La-Z-Boy branded products. We consider this dedicated space to be “proprietary.”

◦La-Z-Boy Furniture Galleries® stores help consumers furnish their homes by combining the style, comfort, and quality of La-Z-Boy furniture with our available design services. We own 177 of the La-Z-Boy Furniture Galleries® stores, while the remainder are independently owned and operated.

◦La-Z-Boy Comfort Studio® locations are defined spaces within larger independent retailers that are dedicated to displaying and selling La-Z-Boy branded products. All 521 La-Z-Boy Comfort Studio® locations are independently owned and operated.

◦In total, we have approximately 7.6 million square feet of proprietary floor space dedicated to selling La-Z-Boy branded products in North America.

◦We also have approximately 2.6 million square feet of floor space outside of the United States and Canada dedicated to selling La-Z-Boy branded products.

•Our other brands, England, American Drew, Hammary, and Kincaid enjoy distribution through many of the same outlets, with slightly over half of Hammary’s sales originating through the La-Z-Boy Furniture Galleries® store network.

◦Kincaid and England have their own dedicated proprietary in-store programs with 623 outlets and approximately 1.8 million square feet of proprietary floor space.

•In total, our proprietary floor space includes approximately 12.0 million square feet worldwide.

•Joybird sells product primarily online and also has limited retail showroom floor space through 11 small-format stores in key urban markets.

Century Vision Strategy

Our goal is to deliver value to our shareholders over the long term by executing our Century Vision, our strategic plan for growth to our centennial year in 2027, in which we aim to grow sales and market share and strengthen our operating margins. The foundation of our strategic plan is to drive disproportionate growth of our two consumer brands, La-Z-Boy and Joybird, by delivering the transformational power of comfort with a consumer-first approach. We plan to drive growth in the following ways:

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Expanding the La-Z-Boy brand reach

•Leveraging our connection to comfort and reinvigorating our brand with a consumer focus and expanded omni-channel presence. Our strategic initiatives to leverage and reinvigorate our iconic La-Z-Boy brand center on a renewed focus on leveraging the compelling La-Z-Boy comfort message, accelerating our omni-channel offering, and identifying additional consumer-base growth opportunities. We launched our new brand campaign and marketing platform in fiscal 2024, Long Live the Lazy, with compelling messaging designed to increase recognition and consideration of the brand. We expect this new messaging will enhance the appeal of our brand with a broader consumer base. Further, our goal is to connect with consumers along their purchase journey through multiple means, whether online or in person. We are driving change throughout our digital platforms to improve the user experience, with a specific focus on the ease with which customers browse through our broad product assortment, customize products to their liking, find stores to make a purchase, or purchase at www.la-z-boy.com.

•Growing our La-Z-Boy Furniture Galleries® store network. We expect our strategic initiatives in this area to generate growth in our Retail segment through an increased company-owned store count and in our Wholesale segment as our proprietary distribution network expands. We are not only focused on growing the number of locations, but also on upgrading existing store locations to our new concept designs. We are prioritizing growth of our company-owned Retail business by opportunistically acquiring existing La-Z-Boy Furniture Galleries® stores and opening new La-Z-Boy Furniture Galleries® stores, primarily in markets that can be serviced through our distribution centers, where we see opportunity for growth, or where we believe we have opportunities for further market penetration. Additionally, we are testing potential store formats to expand our reach to value-seeking consumers and currently operate two Outlet by La-Z-Boy stores.

•Expanding the reach of our wholesale distribution channels. Consumers experience the La-Z-Boy brand in many channels including the La-Z-Boy Furniture Galleries® store network and the La-Z-Boy Comfort Studio® locations, our store-within-a-store format. While consumers increasingly interact with the brand digitally, our consumers also demonstrate an affinity for visiting our stores to shop, allowing us to frequently deliver the flagship La-Z-Boy Furniture Galleries® store, or La-Z-Boy Comfort Studio®, experience and provide design services. In addition to our branded distribution channels, approximately 2,200 other dealers sell La-Z-Boy products, providing us the benefit of multi-channel distribution. These outlets include some of the best-known names in the industry, including Slumberland, Nebraska Furniture Mart, Mathis Brothers and Raymour & Flanagan. We believe there is significant growth potential for our consumer brands through these retail channels.

Profitably growing the Joybird brand

•Profitably growing the Joybird brand with a digital-first consumer experience. During fiscal 2019, we purchased Joybird, a leading e-commerce retailer and manufacturer of upholstered furniture with a direct-to-consumer model. We believe that Joybird is a brand with significant potential and our strategic initiatives in this area focus on fueling profitable growth through an increase in digital marketing spend to drive awareness and customer acquisition, ongoing investments in technology, an expansion of product assortment, and providing additional small-format stores in key urban markets to enhance our consumers' omni-channel experience.

Enhancing our enterprise capabilities

•Enhancing our enterprise capabilities to support the growth of our consumer brands and enable potential acquisitions for growth. Key to successful growth is ensuring we have the capabilities to support that growth, including an agile supply chain, modern technology for consumers and employees, and by delivering a human-centered employee experience. Through our Century Vision strategic plan, we have several initiatives focused on enhancing these capabilities with a consumer-first focus.

Reportable Segments

Our reportable operating segments include the Retail segment and the Wholesale segment.

•Retail Segment. Our Retail segment consists of one operating segment comprised of our 177 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.

•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

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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.

•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.

Results of Operations

Fiscal 2024 Second Quarter Compared with Fiscal 2023 Second Quarter

La-Z-Boy Incorporated


	Quarter Ended					Six Months Ended
(Unaudited, amounts in thousands, except percentages)	10/28/2023		10/29/2022		% Change	10/28/2023		10/29/2022		% Change
Sales	$	511,435	$	611,332	(16.3)%	$	993,086	$	1,215,423	(18.3)	%
Operating income	33,612		61,883		(45.7)%	68,138		114,526		(40.5)	%
Operating margin	6.6%		10.1%			6.9%		9.4%

Sales

Consolidated sales decreased $99.9 million, or 16%, and $222.3 million, or 18%, in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. Sales in the first six months of fiscal 2023 were fueled by the delivery of a significant backlog resulting from heightened demand in prior periods. As a result, the decrease in sales during the second quarter and first six months of fiscal 2024 reflects a return to industry-wide seasonal trends relative to a historically high comparative period. To a lesser extent, sales also decreased in the second quarter and first six months of fiscal 2024 as a result of selective pricing and promotional actions taken to maintain competitiveness.

Operating Margin

Operating margin, which is calculated as operating income as a percentage of sales, decreased 350 basis points and 250 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

•Gross margin, which is calculated as gross profit as a percentage of sales, increased 270 basis points and 360 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

◦Changes in our consolidated mix improved gross margin by 70 basis points in the first six months of fiscal 2024 compared with the same period a year ago, driven by relative growth of our Retail segment, which has a higher gross margin than our Wholesale segment.

◦Lower input costs, led by declining raw material costs and favorable duty expense, improved gross margin in the second quarter and first six months of fiscal 2024, compared with the same periods a year ago. As input costs continued to decline, we took selective pricing and promotional actions to maintain competitiveness, which partially offset these benefits.

◦Compared with the same period a year ago, gross margin in the first six months of fiscal 2024 further benefited from a favorable shift in product mix toward higher priced products.

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◦During the second quarter of fiscal 2024 we recognized $3.6 million in severance-related charges as part of our global supply chain optimization initiative, resulting in a 70 basis point and 40 basis point decrease in gross margin in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

•SG&A expenses as a percentage of sales increased 620 basis points and 610 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

◦Changes in our consolidated mix increased SG&A expense as a percentage of sales by 60 basis points in the first six months of fiscal 2024 compared with the same period a year ago, driven by relative growth of our Retail segment, which has a higher SG&A expense as a percentage of sales than our Wholesale segment.

◦As a part of our global supply chain optimization initiatives, during the first quarter of fiscal 2024 we recognized a $1.2 million gain related to the settlement of our Torreón, Mexico lease obligation on previously impaired long-lived assets and during the second quarter of fiscal 2024, we recognized $3.0 million in accelerated depreciation related to long-lived assets at our Ramos, Mexico facility. Together, these items resulted in a 60 basis point and 20 basis point increase in SG&A expense as a percentage of sales in the second quarter and first six months of fiscal 2024, respectively.

◦The remaining increase in SG&A expense as a percentage of sales was primarily driven by lower delivered sales relative to selling expenses and fixed costs as total SG&A expenses were up $1.4 million and down $5.8 million in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

We discuss each segment’s results in the following section.

Retail Segment


	Quarter Ended					Six Months Ended
(Unaudited, amounts in thousands, except percentages)	10/28/2023		10/29/2022		% Change	10/28/2023		10/29/2022		% Change
Sales	$	214,309	$	252,152	(15.0)%	$	422,552	$	488,173	(13.4)	%
Operating income	27,935		41,500		(32.7)%	57,199		79,652		(28.2)	%
Operating margin	13.0%		16.5%			13.5%		16.3%

Sales

The Retail segment’s sales decreased $37.8 million, or 15%, and $65.6 million, or 13%, in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago, primarily due to a decline in delivered same-store sales resulting from the adverse comparison to historic sales levels in the prior year, which were fueled by the delivery of previously built backlog. The decrease in delivered same-store sales was partially offset by a $5.7 million and $13.7 million increase in sales during the second quarter and first six months of fiscal 2024, respectively, from our retail store acquisitions that occurred in fiscal 2023 and fiscal 2024.

While delivered sales were down relative to the same periods last year, written sales were up 3% and 5% in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. The increases were driven by relatively flat and a 1% increase in written same-store sales for the second quarter and first six months of fiscal 2024, respectively, with the remainder primarily attributable to acquired retail stores. Same-store sales include the sales of all currently active stores which have been open and company-owned for each comparable period.

Operating Margin

The Retail segment's operating margin decreased 350 basis points and 280 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

•Gross margin increased 90 basis points and 120 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago, primarily due to prior period pricing actions taken by the Retail business which were realized as products were delivered to consumers.

•SG&A expense as a percentage of sales increased 440 basis points and 400 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago, primarily due to lower delivered sales relative to selling expenses and fixed costs, mainly occupancy expenses.

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Wholesale Segment


	Quarter Ended					Six Months Ended
(Unaudited, amounts in thousands, except percentages)	10/28/2023		10/29/2022		% Change	10/28/2023		10/29/2022		% Change
Sales to external customers	$	263,738	$	319,613		$	499,989	$	643,341
Intersegment sales	101,229		126,618			198,453		244,708
Total Sales	364,967		446,231		(18.2)%	698,442		888,049		(21.4)	%
Operating income	21,450		38,476		(44.3)%	44,953		64,618		(30.4)	%
Operating margin	5.9%		8.6%			6.4%		7.3%

Sales

The Wholesale segment’s sales decreased $81.3 million, or 18%, and $189.6 million, or 21%, in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. Over the same periods, intercompany sales from our Wholesale segment to our Retail segment decreased 20% and 19%, respectively. The decrease in sales primarily reflects a decline in delivered unit volume as the significant backlog built up in prior periods returns to pre-pandemic levels and the industry returns to typical seasonality. To a lesser extent, sales also decreased in the second quarter and first six months of fiscal 2024, as a result of selective pricing and promotional actions taken to maintain competitiveness.

Operating Margin

The Wholesale segment's operating margin decreased 270 basis points and 90 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

•Gross margin increased 250 basis points and 360 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

◦Favorable input costs, including declining raw material costs and duty expense, drove a 610 basis point and 490 basis point increase in gross margin during the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. With the continued decline in input costs, we took selective pricing and promotional actions to maintain competitiveness, resulting in a 250 basis point and 150 basis point decrease in gross margin, compared with the same respective periods of the prior year.

◦Gross margin in the first six months of fiscal 2024 also benefited 60 basis points from a favorable shift in product mix towards higher priced products.

◦During the second quarter of fiscal 2024 we recognized $3.6 million in severance-related charges as part of our global supply chain optimization initiative, resulting in a 100 basis point and 50 basis point decrease in gross margin in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

•SG&A expense as a percentage of sales increased 520 basis points and 450 basis points in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

◦Reduced fixed cost leverage contributed to higher SG&A expense as a percentage of sales in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago.

◦Higher marketing expense in support of our Long Live the Lazy campaign launch drove a 230 basis point and 160 basis point increase in SG&A expense as a percentage of sales in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. Investments in this campaign support all La-Z-Boy branded products, including those sold through our Retail segment.

◦As a part of our global supply chain optimization initiatives, during the first quarter of fiscal 2024 we recognized a $1.2 million gain related to the settlement of our Torreón, Mexico lease obligation on previously impaired long-lived assets and during the second quarter of fiscal 2024, we recognized $3.0 million in accelerated depreciation related to long-lived assets at our Ramos, Mexico facility. Together, these items resulted in an 80 basis point and 30 basis point increase in SG&A expense as a percentage of sales in the second quarter and first six months of fiscal 2024, respectively.

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Corporate and Other


	Quarter Ended					Six Months Ended
(Unaudited, amounts in thousands, except percentages)	10/28/2023		10/29/2022		% Change	10/28/2023		10/29/2022		% Change
Sales	$	36,232	$	43,637	(17.0)%	$	76,293	$	92,367	(17.4)	%
Intercompany eliminations	(104,073)		(130,688)		20.4%	(204,201)		(253,166)		19.3	%
Operating loss	(15,773)		(18,093)		12.8%	(34,014)		(29,744)		(14.4)	%

Sales

Corporate and Other sales decreased $7.4 million and $16.1 million in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago. The change in sales was primarily led by Joybird sales which decreased $5.8 million to $32.3 million and $12.9 million to $67.9 million in the second quarter and first six months of fiscal 2024, respectively, largely due to lower delivered volume resulting from continued demand challenges. Compared with the respective periods a year ago, written sales for Joybird were up 5% in the second quarter of fiscal 2024, resulting from effective marketing investments driving higher website traffic, but down 8% in the first six months of fiscal 2024.

Intercompany eliminations decreased in the second quarter and first six months of fiscal 2024 compared with the same periods a year ago due to lower sales from our Wholesale segment to our Retail segment.

Operating Loss

Our Corporate and Other operating loss decreased $2.3 million in the second quarter of fiscal 2024, but increased $4.3 million in the first six months of fiscal 2024, compared with the same periods a year ago. The second quarter of fiscal 2024 benefited from improved Joybird operating performance while the first six months of fiscal 2024 experienced lower operating profit from our global trading company in Hong Kong. Additionally, Corporate and Other's operating loss includes intercompany inventory profit elimination adjustments which were favorable in the second quarter but unfavorable during the first six months of fiscal 2024, compared with the same periods a year ago.

Non-Operating Income (Expense)

Interest Income

Interest income was $2.9 million and $5.5 million higher in the second quarter and first six months of fiscal 2024, respectively, compared with the same periods a year ago, primarily driven by higher interest rates on higher cash balances.

Income Taxes

Our effective tax rate was 26.5% for both the second quarter and first six months of fiscal 2024 compared with 25.8% and 26.2% for the second quarter and first six months of fiscal 2023. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

Liquidity and Capital Resources

Our sources of liquidity include cash and cash equivalents, short-term and long-term investments, cash from operations, and amounts available under our credit facility. We believe these sources remain adequate to meet our short-term and long-term liquidity requirements, finance our long-term growth plans, and fulfill other cash requirements for day-to-day operations and capital expenditures, including fiscal 2024 contractual obligations.

We had cash, cash equivalents and restricted cash of $333.5 million at October 28, 2023, compared with $346.7 million at April 29, 2023. In addition, we had investments to enhance our returns on cash of $8.7 million at October 28, 2023, compared with $11.6 million at April 29, 2023.

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The following table illustrates the main components of our cash flows:


	Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022
Cash Flows Provided By (Used For)
Net cash provided by operating activities	$	56,876	$	30,954
Net cash used for investing activities	(25,304)		(44,138)
Net cash used for financing activities	(43,883)		(25,937)
Exchange rate changes	(900)		(1,841)
Change in cash, cash equivalents and restricted cash	$	(13,211)	$	(40,962)

Operating Activities

During the first six months of fiscal 2024, net cash provided by operating activities was $56.9 million, an increase of $25.9 million compared with the prior year, mainly due to a smaller reduction in customer deposits, reflecting a reduced backlog, partially offset by lower net income. Our cash provided by operating activities in fiscal 2024 was primarily attributable to net income, adjusted for non-cash items, partially offset by a $22.8 million decrease in other liabilities, mainly due to the payout of our fiscal 2023 incentive compensation awards during the first quarter of fiscal 2024, along with a $13.8 million decrease in customer deposits reflecting the reduced backlog.

Investing Activities

During the first six months of fiscal 2024, net cash used for investing activities was $25.3 million, a decrease of $18.8 million compared with the prior year primarily due to lower capital expenditures and higher proceeds from asset sales. Cash used for investing activities in fiscal 2024 included the following:

•Cash used for capital expenditures in the period was $26.5 million compared with $40.4 million during the first six months of fiscal 2023, which is primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels) and upgrades at our manufacturing and distribution facilities. We anticipate that spending on these items will continue in fiscal 2024 with full year fiscal 2024 capital expenditures expected to be in the range of $60 to $70 million. We have no material contractual commitments outstanding for future capital expenditures.

•Cash used for acquisitions was $7.3 million, primarily related to the acquisition of the Colorado Springs, Colorado and Lafayette, Louisiana retail businesses.

•Proceeds from the sale of investments, net of investment purchases was $4.5 million.

Financing Activities

On October 15, 2021, we entered into a five-year $200 million unsecured revolving credit facility (as amended, the “Credit Facility”). Borrowings under the Credit Facility may be used by the Company for general corporate purposes. We may increase the size of the facility, either in the form of additional revolving commitments or new term loans, subject to the discretion of each lender to participate in such an increase, up to an additional amount of $100 million. The Credit Facility will mature on October 15, 2026 and provides us the ability to extend the maturity date for two additional one-year periods, subject to the satisfaction of customary conditions. As of October 28, 2023, we have no borrowings outstanding under the Credit Facility.

The Credit Facility contains certain restrictive loan covenants, including, among others, financial covenants requiring a maximum consolidated net lease adjusted leverage ratio and a minimum consolidated fixed charge coverage ratio, as well as customary covenants limiting our ability to incur indebtedness, grant liens, make acquisitions, merge or consolidate, and dispose of certain assets. As of October 28, 2023, we were in compliance with our financial covenants under the Credit Facility. We believe our cash and cash equivalents, short-term investments, and cash from operations, in addition to our available Credit Facility, will provide adequate liquidity for our business operations over the next 12 months.

During the first six months of fiscal 2024, net cash used for financing activities was $43.9 million, an increase of $17.9 million compared with the prior year, primarily due to higher share repurchases. Cash used for financing activities in fiscal 2024 included the following:

•Our board of directors has authorized the repurchase of company stock and we spent $20.0 million in the first six months of fiscal 2024 to repurchase 0.7 million shares. As of October 28, 2023, 6.6 million shares remained available

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for repurchase pursuant to this authorization. With the operating cash flows we anticipate generating in fiscal 2024, we expect to continue repurchasing Company stock.

•Cash paid to our shareholders in quarterly dividends was $15.6 million. Our board of directors has sole authority to determine if and when we will declare future dividends and on what terms. We expect the board to continue declaring regular quarterly cash dividends for the foreseeable future, but it may discontinue doing so at any time.

•Cash paid for holdback payments made on prior-period acquisitions was $5.0 million for a guaranteed payment related to the acquisition of Joybird.

Exchange Rate Changes

Due to changes in exchange rates, our cash, cash equivalents, and restricted cash decreased by $0.9 million for the six months ended October 28, 2023. These changes impacted our cash balances held in Canada, Thailand, and the United Kingdom.

Other

During the second quarter of fiscal 2024, there were no material changes to the information about our contractual obligations and commitments disclosed in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023. We do not expect our continuing compliance with existing federal, state and local statutes dealing with protection of the environment to have a material effect on our capital expenditures, earnings, competitive position or liquidity.

Critical Accounting Policies

We disclosed our critical accounting policies in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023. There were no material changes to our critical accounting policies or estimates during the six months ended October 28, 2023.

Recent Accounting Pronouncements

See Note 1, Basis of Presentation, to the consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of recently adopted accounting standards and other new accounting standards.

Table of Contents

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

During the first six months of fiscal 2024, there were no material changes from the information contained in Item 7A of our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting. There were no changes in our internal controls over financial reporting that occurred during the second quarter of fiscal 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II — OTHER INFORMATION

ITEM 1A. RISK FACTORS

We disclosed our risk factors in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023. There have been no material changes to our risk factors during the first six months of fiscal 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Our board of directors has authorized the repurchase of Company stock. With respect to the second quarter of fiscal 2024, pursuant to the existing board authorization, we adopted a plan to repurchase company stock pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The plan was effective July 31, 2023. Under this plan, our broker had the authority to repurchase Company shares on our behalf, subject to SEC regulations and the price, market volume and timing constraints specified in the plan. The plan expired at the close of business on October 27, 2023. We spent $10.0 million in the second quarter of fiscal 2024 to repurchase 0.3 million shares, pursuant to the plan and as discretionary purchases. As of October 28, 2023, 6.6 million shares remained available for repurchase pursuant to the board authorization. With the operating cash flows we anticipate generating in fiscal 2024, we expect to continue repurchasing Company stock, subject to market conditions and other factors as deemed relevant by our board of directors.

The following table summarizes our repurchases of Company stock during the quarter ended October 28, 2023 and includes shares purchased from employees to satisfy their withholding tax obligations upon vesting of restricted shares:


(Unaudited, amounts in thousands, except per share data)	Total number of shares repurchased (1)	Average price paid per share		Total number of shares repurchased as part of publicly announced plan (2)	Maximum number of shares that may yet be repurchased under the plan
Fiscal August (July 30 – September 2, 2023)	125	$	31.19	125	6,780
Fiscal September (September 3 – September 30, 2023)	96	$	31.15	96	6,684
Fiscal October (October 1 – October 28, 2023)	106	$	29.55	106	6,578
Total (Fiscal Second Quarter of 2024)	327			327	6,578

(1) In addition to the 326,284 shares we repurchased during the quarter as part of our publicly announced, board-authorized plan described above, this column includes 138 shares we repurchased from employees to satisfy their withholding tax obligations upon vesting of restricted shares.

(2) On October 28, 1987, our board of directors announced the authorization of the plan to repurchase Company stock. The plan originally authorized 1.0 million shares, and since October 1987, 33.5 million shares have been added to the plan for repurchase. The authorization has no expiration date.

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Officers

During the quarter ended October 28, 2023, none of our directors or officers adopted or terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as each term is defined in Item 408(a) of Regulation S-K).

Table of Contents

ITEM 6. EXHIBITS


Exhibit Number						Description
(31.1)						Certifications of Chief Executive Officer pursuant to Rule 13a-14(a)
(31.2)						Certifications of Chief Financial Officer pursuant to Rule 13a-14(a)
(32)						Certifications of Executive Officers pursuant to 18 U.S.C. Section 1350(b)
(101.INS)						Inline XBRL Instance Document
(101.SCH)						Inline XBRL Taxonomy Extension Schema Document
(101.CAL)						Inline XBRL Taxonomy Extension Calculation Linkbase Document
(101.LAB)						Inline XBRL Taxonomy Extension Label Linkbase Document
(101.PRE)						Inline XBRL Taxonomy Extension Presentation Linkbase Document
(101.DEF)						Inline XBRL Taxonomy Extension Definition Linkbase Document
(104)						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended October 28, 2023, formatted in Inline XBRL (included in Exhibit 101)

Table of Contents

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			LA-Z-BOY INCORPORATED
			(Registrant)


Date: November 29, 2023


			BY: /s/ Jennifer L. McCurry
			Jennifer L. McCurry Vice President, Corporate Controller and Chief Accounting Officer

Exhibit 31.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a‑14(a)

I, Melinda D. Whittington, certify that:

1. I have reviewed this quarterly report on Form 10-Q of La-Z-Boy Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 29, 2023			/s/ Melinda D. Whittington
			Melinda D. Whittington
			President and Chief Executive Officer

Exhibit 31.2

CERTIFICATIONS OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)

I, Robert G. Lucian, certify that:

1. I have reviewed this quarterly report on Form 10-Q of La-Z-Boy Incorporated;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: November 29, 2023			/s/ Robert G. Lucian
			Robert G. Lucian
			Senior Vice President and Chief Financial Officer

EXHIBIT 32

CERTIFICATION OF EXECUTIVE OFFICERS*

Pursuant to 18 U.S.C. section 1350, each of the undersigned officers of La-Z-Boy Incorporated (the “Company”) hereby certifies, to such officer’s knowledge, that the Company’s Quarterly Report on Form 10-Q for the period ended October 28, 2023 (the “Report”) fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


/s/ Melinda D. Whittington
Melinda D. Whittington
President and Chief Executive Officer
November 29, 2023


/s/ Robert G. Lucian
Robert G. Lucian
Senior Vice President and Chief Financial Officer
November 29, 2023

*The foregoing certification is being furnished solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Report or as a separate disclosure document.

Cover Page - shares	6 Months Ended
Cover Page - shares	Oct. 28, 2023	Nov. 22, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 28, 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	242-1444
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		42,779,520
Entity Central Index Key	0000057131
Current Fiscal Year End Date	--04-27
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Income Statement [Abstract]
Sales	$ 511,435	$ 611,332	$ 993,086	$ 1,215,423
Cost of sales	288,830	361,848	564,753	734,909
Gross profit	222,605	249,484	428,333	480,514
Selling, general and administrative expense	188,993	187,601	360,195	365,988
Operating income	33,612	61,883	68,138	114,526
Interest expense	(101)	(119)	(223)	(278)
Interest income	4,042	1,138	7,098	1,612
Other income (expense), net	104	183	660	228
Income before income taxes	37,657	63,085	75,673	116,088
Income tax expense	9,963	16,306	20,053	30,369
Net income	27,694	46,779	55,620	85,719
Net income attributable to noncontrolling interests	(495)	(702)	(942)	(1,154)
Net income attributable to La-Z-Boy Incorporated	$ 27,199	$ 46,077	$ 54,678	$ 84,565
Earnings Per Share, Basic [Abstract]
Basic weighted average common shares (in shares)	43,008	43,104	43,123	43,098
Basic net income attributable to La-Z-Boy Incorporated per share (in dollars per share)	$ 0.63	$ 1.07	$ 1.27	$ 1.96
Earnings Per Share, Diluted [Abstract]
Diluted weighted average common shares (in shares)	43,401	43,182	43,479	43,174
Diluted net income attributable to La-Z-Boy Incorporated per share (in dollars per share)	$ 0.63	$ 1.07	$ 1.26	$ 1.96

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 27,694	$ 46,779	$ 55,620	$ 85,719
Other comprehensive income (loss)
Currency translation adjustment	(3,615)	(3,353)	(2,568)	(5,513)
Net unrealized gain (loss) on marketable securities, net of tax	(87)	(289)	133	(203)
Net pension amortization, net of tax	24	37	47	73
Total other comprehensive income (loss)	(3,678)	(3,605)	(2,388)	(5,643)
Total comprehensive income before noncontrolling interests	24,016	43,174	53,232	80,076
Comprehensive (income) loss attributable to noncontrolling interests	(11)	(298)	(418)	(231)
Comprehensive income attributable to La-Z-Boy Incorporated	$ 24,005	$ 42,876	$ 52,814	$ 79,845

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Current assets
Cash and equivalents	$ 329,632	$ 343,374
Restricted cash	3,835	3,304
Receivables, net of allowance of $4,714 at 10/28/2023 and $4,776 at 4/29/2023	134,394	125,536
Inventories, net	268,480	276,257
Other current assets	104,675	106,129
Total current assets	841,016	854,600
Property, plant and equipment, net	270,682	278,578
Goodwill	208,473	205,008
Other intangible assets, net	41,515	39,375
Deferred income taxes – long-term	8,477	8,918
Right of use lease assets	452,232	416,269
Other long-term assets, net	57,630	63,515
Total assets	1,880,025	1,866,263
Current liabilities
Accounts payable	98,088	107,460
Lease liabilities, short-term	77,401	77,751
Accrued expenses and other current liabilities	256,325	290,650
Total current liabilities	431,814	475,861
Lease liabilities, long-term	406,458	368,163
Other long-term liabilities	67,963	70,142
Shareholders' equity
Preferred shares – 5,000 authorized; none issued	0	0
Common shares, $1.00 par value – 150,000 authorized; 42,875 outstanding at 10/28/2023 and 43,318 outstanding at 4/29/2023	42,875	43,318
Capital in excess of par value	361,409	358,891
Retained earnings	567,391	545,155
Accumulated other comprehensive loss	(7,392)	(5,528)
Total La-Z-Boy Incorporated shareholders' equity	964,283	941,836
Noncontrolling interests	9,507	10,261
Total equity	973,790	952,097
Total liabilities and equity	$ 1,880,025	$ 1,866,263

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Current assets
Receivables, allowance	$ 4,714	$ 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)	$ 1.00	$ 1.00
Common shares, authorized (in shares)	150,000,000	150,000,000
Common shares, outstanding (in shares)	42,875,000	43,318,000

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Thousands

6 Months Ended

Oct. 28, 2023

Oct. 29, 2022

Cash flows from operating activities

Net income

$ 55,620

$ 85,719

Adjustments to reconcile net income to cash provided by operating activities

(Gain)/loss on disposal and impairment of assets

559

(Gain)/loss on sale of investments

(1,136)

Provision for doubtful accounts

694

Depreciation and amortization

25,092

19,258

Amortization of right-of-use lease assets

37,285

38,580

Lease impairment/(settlement)

(1,175)

Equity-based compensation expense

7,337

5,079

Change in deferred taxes

(340)

Change in receivables

(9,843)

19,550

Change in inventories

9,757

(36,771)

Change in other assets

(1,361)

4,890

Change in payables

(4,040)

8,027

Change in lease liabilities

(38,121)

(39,380)

Change in other liabilities

(22,802)

(74,797)

Net cash provided by operating activities

56,876

30,954

Cash flows from investing activities

Proceeds from disposals of assets

4,037

Capital expenditures

(26,501)

(40,442)

Purchases of investments

(17,485)

(4,714)

Proceeds from sales of investments

21,956

12,660

Acquisitions

(7,311)

(11,705)

Net cash used for investing activities

(25,304)

(44,138)

Cash flows from financing activities

Payments on debt and finance lease liabilities

(206)

(61)

Holdback payments for acquisitions

(5,000)

Stock issued for stock and employee benefit plans, net of shares withheld for taxes

(1,859)

(1,711)

Repurchases of common stock

(20,014)

(5,004)

Dividends paid to shareholders

(15,632)

(14,161)

Dividends paid to minority interest joint venture partners

^[1]

(1,172)

Net cash used for financing activities

(43,883)

(25,937)

Effect of exchange rate changes on cash and equivalents

(900)

(1,841)

Change in cash, cash equivalents and restricted cash

(13,211)

(40,962)

Cash, cash equivalents and restricted cash at beginning of period

346,678

248,856

Cash, cash equivalents and restricted cash at end of period

333,467

207,894

Supplemental disclosure of non-cash investing activities

Capital expenditures included in payables

$ 3,079

$ 4,251

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

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)

(4,800)

Stock option and restricted stock expense

1,417

Dividends declared and paid

(7,097)

Dividends declared not paid

(45)

Ending balance at Jul. 30, 2022

844,092

43,036

343,475

456,067

(7,316)

8,830

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

85,719

1,154

Other comprehensive income (loss)

(5,643)

(923)

Ending balance at Oct. 29, 2022

883,786

43,136

347,036

495,003

(10,517)

9,128

Beginning balance at Jul. 30, 2022

844,092

43,036

343,475

456,067

(7,316)

8,830

Increase (Decrease) in Stockholders' Equity

Net income

46,779

46,077

702

Other comprehensive income (loss)

(3,605)

(3,201)

(404)

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax

(8)

100

(101)

(7)

Stock option and restricted stock expense

3,662

Dividends declared and paid

(7,064)

Dividends declared not paid

(70)

Ending balance at Oct. 29, 2022

883,786

43,136

347,036

495,003

(10,517)

9,128

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

Dividends declared and paid

(7,852)

Dividends declared not paid

(72)

Ending balance at Jul. 29, 2023

963,930

43,110

356,684

557,666

(4,198)

10,668

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

55,620

942

Other comprehensive income (loss)

(2,388)

(524)

Ending balance at Oct. 28, 2023

973,790

42,875

361,409

567,391

(7,392)

9,507

Beginning balance at Jul. 29, 2023

963,930

43,110

356,684

557,666

(4,198)

10,668

Increase (Decrease) in Stockholders' Equity

Net income

27,694

27,199

495

Other comprehensive income (loss)

(3,678)

(3,194)

(484)

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax

119

(4)

Repurchase of shares of common stock

(10,005)

(326)

(118)

(9,561)

Stock option and restricted stock expense

4,811

Dividends declared and paid

^[1]

(8,952)

(7,780)

(1,172)

Dividends declared not paid

(129)

Ending balance at Oct. 28, 2023

$ 973,790

$ 42,875

$ 361,409

$ 567,391

$ (7,392)

$ 9,507

[1]	Non-controlling interests include dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Oct. 28, 2023	Jul. 29, 2023	Oct. 29, 2022	Jul. 30, 2022
Dividends paid (in dollars per share)	$ 0.1815	$ 0.1815	$ 0.165	$ 0.165
Dividends declared (in dollars per share)	$ 0.1815	$ 0.1815	$ 0.165	$ 0.165
Common Shares
Shares purchased (in shares)	326	357		204

Basis of Presentation

6 Months Ended

Oct. 28, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Accounting Pronouncements Adopted in Fiscal 2024

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

ASU

Description

Adoption Date

ASU 2023-05

Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Fiscal 2025

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


(Unaudited, amounts in thousands)	For the Quarter Ended October 29, 2022						For the Six Months Ended October 29, 2022
	Previously Reported		Effect of Change		As Adjusted		Previously Reported		Effect of Change		As Adjusted
Cost of sales	$	350,596	$	11,252	$	361,848	$	713,227	$	21,682	$	734,909
Gross profit	260,736		(11,252)		249,484		502,196		(21,682)		480,514
Selling, general and administrative expense	198,853		(11,252)		187,601		387,670		(21,682)		365,988

Acquisitions	6 Months Ended
Acquisitions	Oct. 28, 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. Lafayette, Louisiana Acquisition On October 23, 2023, we completed our acquisition of the Lafayette Louisiana business that operates one independently owned La-Z-Boy Furniture Galleries® store and one distribution center for $2.8 million, inclusive of and subject to further customary adjustments. We paid total cash of $1.8 million during the second quarter of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $0.7 million related to the reacquired rights described above. We also recognized $2.1 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies. 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, inclusive of and subject to further to customary adjustments. We paid total cash of $5.6 million during the first and second quarters of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $2.1 million related to the reacquired rights described above. We also recognized $2.2 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 Spokane, Washington Acquisition On September 26, 2022, we completed our acquisition of the Spokane, Washington business that operates one independently owned La-Z-Boy Furniture Galleries® store and one distribution center for $4.7 million, inclusive of customary adjustments. We paid total cash of $4.0 million during the second quarter of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $1.2 million related to the reacquired rights described above. We also recognized $3.0 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies. 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® stores and one distribution center for $10.1 million, inclusive of customary adjustments. We paid total cash of $7.7 million during the first and second quarters of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $4.3 million related to the reacquired rights described above. We also recognized $7.6 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.

Cash and Restricted Cash

6 Months Ended

Oct. 28, 2023

Cash and Cash Equivalents [Abstract]

Cash and Restricted Cash


(Unaudited, amounts in thousands)	10/28/2023		10/29/2022
Cash and cash equivalents	$	329,632	$	204,626
Restricted cash	3,835		3,268
Total cash, cash equivalents and restricted cash	$	333,467	$	207,894

Inventories

6 Months Ended

Oct. 28, 2023

Inventory Disclosure [Abstract]

Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Raw materials	$	125,211	$	116,440
Work in process	20,607		24,328
Finished goods	168,574		181,401
FIFO inventories	314,392		322,169
Excess of FIFO over LIFO	(45,912)		(45,912)
Total inventories	$	268,480	$	276,257

Goodwill and Other Intangible Assets

6 Months Ended

Oct. 28, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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

The following table summarizes changes in the carrying amount of our goodwill by reportable segment:


(Unaudited, amounts in thousands)	Wholesale Segment		Retail Segment		Corporate and Other		Total Goodwill
Balance at April 29, 2023 (1)	$	20,202	$	129,360	$	55,446	$	205,008
Acquisitions	—		4,273		—		4,273
Translation adjustment	(725)		(83)		—		(808)
Balance at October 28, 2023 (1)	$	19,477	$	133,550	$	55,446	$	208,473

(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-year useful life

The following summarizes changes in our intangible assets:


(Unaudited, amounts in thousands)	Indefinite- Lived Trade Names		Finite-Lived Trade Name		Indefinite- Lived Reacquired Rights		Other Intangible Assets		Total Intangible Assets
Balance at April 29, 2023	$	1,155	$	2,594	$	33,739	$	1,887	$	39,375
Acquisitions	—		—		2,773		—		2,773
Amortization	—		(399)				(109)		(508)
Translation adjustment	—		—		(61)		(64)		(125)
Balance at October 28, 2023	$	1,155	$	2,195	$	36,451	$	1,714	$	41,515

Investments

6 Months Ended

Oct. 28, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

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)	10/28/2023		4/29/2023
Short-term investments:
Marketable securities	$	6,500	$	5,043
Held-to-maturity investments	1,285		1,351
Total short-term investments	7,785		6,394
Long-term investments:
Marketable securities	13,556		18,509


Total investments	$	21,341	$	24,903

Investments to enhance returns on cash	$	8,652	$	11,617
Investments to fund compensation/retirement plans	12,689		13,286

Total investments	$	21,341	$	24,903

The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type:


	10/28/2023						4/29/2023
(Unaudited, amounts in thousands)	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Equity securities	$	—	$	(138)	$	3,805	$	1,338	$	(103)	$	6,853
Fixed income	—		(400)		13,714		42		(620)		14,039
Other	1,165		—		3,822		1,171		—		4,011
Total securities	$	1,165	$	(538)	$	21,341	$	2,551	$	(723)	$	24,903

The following table summarizes sales of marketable securities:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Proceeds from sales	$	8,064	$	8,418	$	20,468	$	12,664
Gross realized gains	1,715		22		1,876		49
Gross realized losses	(272)		(70)		(740)		(126)

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)	10/28/2023
Within one year	$	6,405
Within two to five years	961


Securities not due at a single maturity date	6,348
Total	$	13,714

Product Warranties

6 Months Ended

Oct. 28, 2023

Product Warranties Disclosures [Abstract]

Product Warranties

A reconciliation of the changes in our product warranty liability is as follows:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023 (1)		10/29/2022
Balance as of the beginning of the period	$	30,794	$	27,516	$	30,984	$	27,036

Accruals during the period	6,957		8,453		13,622		16,279
Settlements during the period	(6,624)		(7,612)		(13,479)		(14,958)
Balance as of the end of the period	$	31,127	$	28,357	$	31,127	$	28,357

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

6 Months Ended

Oct. 28, 2023

Share-Based Payment Arrangement [Abstract]

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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Equity-based awards expense	$	4,811	$	3,662	$	7,337	$	5,079
Liability-based awards expense (1)	(35)		18		53		146
Total stock-based compensation expense	$	4,776	$	3,680	$	7,390	$	5,225

target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Oct. 28, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Activity in accumulated other comprehensive income (loss) for the quarters ended October 28, 2023, and October 29, 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 July 29, 2023	$	(1,565)	$	75	$	(2,708)	$	(4,198)
Changes before reclassifications	(3,131)		(139)		—		(3,270)


Amounts reclassified to net income	—		24		31		55
Tax effect	—		28		(7)		21
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(3,131)		(87)		24		(3,194)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at July 30, 2022	$	(3,602)	$	(212)	$	(3,502)	$	(7,316)
Changes before reclassifications	(2,949)		(445)		—		(3,394)


Amounts reclassified to net income	—		62		48		110
Tax effect	—		94		(11)		83
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,949)		(289)		37		(3,201)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

Activity in accumulated other comprehensive income (loss) for the six months ended October 28, 2023 and October 29, 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	(2,044)		(154)		—		(2,198)


Amounts reclassified to net income	—		331		62		393
Tax effect	—		(44)		(15)		(59)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,044)		133		47		(1,864)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at April 30, 2022	$	(1,961)	$	(298)	$	(3,538)	$	(5,797)
Changes before reclassifications	(4,590)		(390)		—		(4,980)


Amounts reclassified to net income	—		121		96		217
Tax effect	—		66		(23)		43
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(4,590)		(203)		73		(4,720)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Balance as of the beginning of the period	$	10,668	$	8,830	$	10,261	$	8,897
Net income	495		702		942		1,154
Other comprehensive loss	(484)		(404)		(524)		(923)
Dividends distributed to joint venture minority partners	(1,172)		—		(1,172)		—
Balance as of the end of the period	$	9,507	$	9,128	$	9,507	$	9,128

Revenue Recognition

6 Months Ended

Oct. 28, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The following table presents our revenue disaggregated by product category and by segment or unit:


	Quarter Ended October 28, 2023								Quarter Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	314,771	$	172,989	$	42,996	$	530,756	$	337,997	$	207,228	$	46,438	$	591,663
Casegoods Furniture	20,352		12,942		4,248		37,542		30,545		15,419		6,541		52,505
Delivery	43,655		8,869		1,755		54,279		56,538		8,172		2,100		66,810
Other (1)	(13,811)		19,509		(12,767)		(7,069)		21,151		21,333		(11,442)		31,042
Total	$	364,967	$	214,309	$	36,232	$	615,508	$	446,231	$	252,152	$	43,637	$	742,020

Eliminations							(104,073)								(130,688)
Consolidated Net Sales							$	511,435							$	611,332

	Six Months Ended October 28, 2023								Six Months Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	598,189	$	343,703	$	89,430	$	1,031,322	$	668,475	$	404,030	$	97,680	$	1,170,185
Casegoods Furniture	40,728		24,775		8,956		74,459		58,551		27,873		14,269		100,693
Delivery	83,698		17,112		3,657		104,467		112,775		16,188		4,003		132,966
Other (1)	(24,173)		36,962		(25,750)		(12,961)		48,248		40,082		(23,585)		64,745
Total	$	698,442	$	422,552	$	76,293	$	1,197,287	$	888,049	$	488,173	$	92,367	$	1,468,589

Eliminations							(204,201)								(253,166)
Consolidated Net Sales							$	993,086							$	1,215,423

The following table presents our contract assets and liabilities:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Contract assets	$	35,206	$	44,939

Customer deposits	$	93,221	$	105,766
Deferred revenue	35,206		44,939
Total contract liabilities (1)	$	128,427	$	150,705

(1)During the six months ended October 28, 2023, we recognized revenue of $137.4 million related to our contract liability balance at April 29, 2023.

Segment Information

6 Months Ended

Oct. 28, 2023

Segment Reporting [Abstract]

Segment Information

Our reportable operating segments include the Wholesale segment and the Retail segment.

The following table presents sales and operating income (loss) by segment:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Sales
Wholesale segment:
Sales to external customers	$	263,738	$	319,613	$	499,989	$	643,341
Intersegment sales	101,229		126,618		198,453		244,708
Wholesale segment sales	364,967		446,231		698,442		888,049

Retail segment sales	214,309		252,152		422,552		488,173

Corporate and Other:
Sales to external customers	33,388		39,567		70,545		83,909
Intersegment sales	2,844		4,070		5,748		8,458
Corporate and Other sales	36,232		43,637		76,293		92,367

Eliminations	(104,073)		(130,688)		(204,201)		(253,166)
Consolidated sales	$	511,435	$	611,332	$	993,086	$	1,215,423

Operating Income (Loss)
Wholesale segment	$	21,450	$	38,476	$	44,953	$	64,618
Retail segment	27,935		41,500		57,199		79,652
Corporate and Other	(15,773)		(18,093)		(34,014)		(29,744)
Consolidated operating income	33,612		61,883		68,138		114,526
Interest expense	(101)		(119)		(223)		(278)
Interest income	4,042		1,138		7,098		1,612
Other income (expense), net	104		183		660		228
Income before income taxes	$	37,657	$	63,085	$	75,673	$	116,088

Income Taxes	6 Months Ended
Income Taxes	Oct. 28, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was 26.5% for both the second quarter and first six months ended October 28, 2023 compared with 25.8% and 26.2% for the second quarter and first six months ended October 29, 2022, respectively. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

Earnings per Share

6 Months Ended

Oct. 28, 2023

Earnings Per Share [Abstract]

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				Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Numerator (basic and diluted):


Net income available to common Shareholders	$	27,199	$	46,077	$	54,678	$	84,565

Denominator:
Basic weighted average common shares outstanding	43,008		43,104		43,123		43,098
Contingent common shares	296		78		289		76
Stock option dilution	97		—		67		—
Diluted weighted average common shares outstanding (1)	43,401		43,182		43,479		43,174

Earnings per Share:
Basic	$	0.63	$	1.07	$	1.27	$	1.96
Diluted	$	0.63	$	1.07	$	1.26	$	1.96

(1)Diluted earnings per share was computed using the treasury stock method.

Fair Value Measurements

6 Months Ended

Oct. 28, 2023

Fair Value Disclosures [Abstract]

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:


At October 28, 2023
	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3		NAV(1)		Total
Assets
Marketable securities	$	—	$	9,903	$	—	$	10,153	$	20,056
Held-to-maturity investments	1,285		—		—		—		1,285

Total assets	$	1,285	$	9,903	$	—	$	10,153	$	21,341


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.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 27,199	$ 46,077	$ 54,678	$ 84,565

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Oct. 28, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies)

6 Months Ended

Oct. 28, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent accounting pronouncements

Accounting Pronouncements Adopted in Fiscal 2024

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

ASU

Description

Adoption Date

ASU 2023-05

Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Fiscal 2025

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)

6 Months Ended

Oct. 28, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements Adopted and Not Yet Adopted

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

ASU

Description

Adoption Date

ASU 2023-05

Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Fiscal 2025

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


(Unaudited, amounts in thousands)	For the Quarter Ended October 29, 2022						For the Six Months Ended October 29, 2022
	Previously Reported		Effect of Change		As Adjusted		Previously Reported		Effect of Change		As Adjusted
Cost of sales	$	350,596	$	11,252	$	361,848	$	713,227	$	21,682	$	734,909
Gross profit	260,736		(11,252)		249,484		502,196		(21,682)		480,514
Selling, general and administrative expense	198,853		(11,252)		187,601		387,670		(21,682)		365,988

Cash and Restricted Cash (Tables)

6 Months Ended

Oct. 28, 2023

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents


(Unaudited, amounts in thousands)	10/28/2023		10/29/2022
Cash and cash equivalents	$	329,632	$	204,626
Restricted cash	3,835		3,268
Total cash, cash equivalents and restricted cash	$	333,467	$	207,894

Restrictions on Cash and Cash Equivalents


(Unaudited, amounts in thousands)	10/28/2023		10/29/2022
Cash and cash equivalents	$	329,632	$	204,626
Restricted cash	3,835		3,268
Total cash, cash equivalents and restricted cash	$	333,467	$	207,894

Inventories (Tables)

6 Months Ended

Oct. 28, 2023

Inventory Disclosure [Abstract]

Summary of Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Raw materials	$	125,211	$	116,440
Work in process	20,607		24,328
Finished goods	168,574		181,401
FIFO inventories	314,392		322,169
Excess of FIFO over LIFO	(45,912)		(45,912)
Total inventories	$	268,480	$	276,257

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Oct. 28, 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

The following table summarizes changes in the carrying amount of our goodwill by reportable segment:


(Unaudited, amounts in thousands)	Wholesale Segment		Retail Segment		Corporate and Other		Total Goodwill
Balance at April 29, 2023 (1)	$	20,202	$	129,360	$	55,446	$	205,008
Acquisitions	—		4,273		—		4,273
Translation adjustment	(725)		(83)		—		(808)
Balance at October 28, 2023 (1)	$	19,477	$	133,550	$	55,446	$	208,473

(1)Includes $26.9 million of accumulated impairment losses in Corporate and Other.

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-year useful life

The following summarizes changes in our intangible assets:


(Unaudited, amounts in thousands)	Indefinite- Lived Trade Names		Finite-Lived Trade Name		Indefinite- Lived Reacquired Rights		Other Intangible Assets		Total Intangible Assets
Balance at April 29, 2023	$	1,155	$	2,594	$	33,739	$	1,887	$	39,375
Acquisitions	—		—		2,773		—		2,773
Amortization	—		(399)				(109)		(508)
Translation adjustment	—		—		(61)		(64)		(125)
Balance at October 28, 2023	$	1,155	$	2,195	$	36,451	$	1,714	$	41,515

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-year useful life

The following summarizes changes in our intangible assets:


(Unaudited, amounts in thousands)	Indefinite- Lived Trade Names		Finite-Lived Trade Name		Indefinite- Lived Reacquired Rights		Other Intangible Assets		Total Intangible Assets
Balance at April 29, 2023	$	1,155	$	2,594	$	33,739	$	1,887	$	39,375
Acquisitions	—		—		2,773		—		2,773
Amortization	—		(399)				(109)		(508)
Translation adjustment	—		—		(61)		(64)		(125)
Balance at October 28, 2023	$	1,155	$	2,195	$	36,451	$	1,714	$	41,515

Investments (Tables)

6 Months Ended

Oct. 28, 2023

Investments, Debt and Equity Securities [Abstract]

Summary of Investments

The following summarizes our investments:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Short-term investments:
Marketable securities	$	6,500	$	5,043
Held-to-maturity investments	1,285		1,351
Total short-term investments	7,785		6,394
Long-term investments:
Marketable securities	13,556		18,509


Total investments	$	21,341	$	24,903

Investments to enhance returns on cash	$	8,652	$	11,617
Investments to fund compensation/retirement plans	12,689		13,286

Total investments	$	21,341	$	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:


	10/28/2023						4/29/2023
(Unaudited, amounts in thousands)	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Equity securities	$	—	$	(138)	$	3,805	$	1,338	$	(103)	$	6,853
Fixed income	—		(400)		13,714		42		(620)		14,039
Other	1,165		—		3,822		1,171		—		4,011
Total securities	$	1,165	$	(538)	$	21,341	$	2,551	$	(723)	$	24,903

Summary of Sales of Marketable Securities

The following table summarizes sales of marketable securities:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Proceeds from sales	$	8,064	$	8,418	$	20,468	$	12,664
Gross realized gains	1,715		22		1,876		49
Gross realized losses	(272)		(70)		(740)		(126)

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)	10/28/2023
Within one year	$	6,405
Within two to five years	961


Securities not due at a single maturity date	6,348
Total	$	13,714

Product Warranties (Tables)

6 Months Ended

Oct. 28, 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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023 (1)		10/29/2022
Balance as of the beginning of the period	$	30,794	$	27,516	$	30,984	$	27,036

Accruals during the period	6,957		8,453		13,622		16,279
Settlements during the period	(6,624)		(7,612)		(13,479)		(14,958)
Balance as of the end of the period	$	31,127	$	28,357	$	31,127	$	28,357

Stock-Based Compensation (Tables)

6 Months Ended

Oct. 28, 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				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Equity-based awards expense	$	4,811	$	3,662	$	7,337	$	5,079
Liability-based awards expense (1)	(35)		18		53		146
Total stock-based compensation expense	$	4,776	$	3,680	$	7,390	$	5,225

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Oct. 28, 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 October 28, 2023, and October 29, 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 July 29, 2023	$	(1,565)	$	75	$	(2,708)	$	(4,198)
Changes before reclassifications	(3,131)		(139)		—		(3,270)


Amounts reclassified to net income	—		24		31		55
Tax effect	—		28		(7)		21
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(3,131)		(87)		24		(3,194)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at July 30, 2022	$	(3,602)	$	(212)	$	(3,502)	$	(7,316)
Changes before reclassifications	(2,949)		(445)		—		(3,394)


Amounts reclassified to net income	—		62		48		110
Tax effect	—		94		(11)		83
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,949)		(289)		37		(3,201)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

Activity in accumulated other comprehensive income (loss) for the six months ended October 28, 2023 and October 29, 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	(2,044)		(154)		—		(2,198)


Amounts reclassified to net income	—		331		62		393
Tax effect	—		(44)		(15)		(59)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(2,044)		133		47		(1,864)
Balance at October 28, 2023	$	(4,696)	$	(12)	$	(2,684)	$	(7,392)

Balance at April 30, 2022	$	(1,961)	$	(298)	$	(3,538)	$	(5,797)
Changes before reclassifications	(4,590)		(390)		—		(4,980)


Amounts reclassified to net income	—		121		96		217
Tax effect	—		66		(23)		43
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(4,590)		(203)		73		(4,720)
Balance at October 29, 2022	$	(6,551)	$	(501)	$	(3,465)	$	(10,517)

Schedule of Components of Non-controlling Interest

The components of noncontrolling interest were as follows:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Balance as of the beginning of the period	$	10,668	$	8,830	$	10,261	$	8,897
Net income	495		702		942		1,154
Other comprehensive loss	(484)		(404)		(524)		(923)
Dividends distributed to joint venture minority partners	(1,172)		—		(1,172)		—
Balance as of the end of the period	$	9,507	$	9,128	$	9,507	$	9,128

Revenue Recognition (Tables)

6 Months Ended

Oct. 28, 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 October 28, 2023								Quarter Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	314,771	$	172,989	$	42,996	$	530,756	$	337,997	$	207,228	$	46,438	$	591,663
Casegoods Furniture	20,352		12,942		4,248		37,542		30,545		15,419		6,541		52,505
Delivery	43,655		8,869		1,755		54,279		56,538		8,172		2,100		66,810
Other (1)	(13,811)		19,509		(12,767)		(7,069)		21,151		21,333		(11,442)		31,042
Total	$	364,967	$	214,309	$	36,232	$	615,508	$	446,231	$	252,152	$	43,637	$	742,020

Eliminations							(104,073)								(130,688)
Consolidated Net Sales							$	511,435							$	611,332

	Six Months Ended October 28, 2023								Six Months Ended October 29, 2022
(Unaudited, amounts in thousands)	Wholesale		Retail		Corporate and Other		Total		Wholesale		Retail		Corporate and Other		Total
Upholstered Furniture	$	598,189	$	343,703	$	89,430	$	1,031,322	$	668,475	$	404,030	$	97,680	$	1,170,185
Casegoods Furniture	40,728		24,775		8,956		74,459		58,551		27,873		14,269		100,693
Delivery	83,698		17,112		3,657		104,467		112,775		16,188		4,003		132,966
Other (1)	(24,173)		36,962		(25,750)		(12,961)		48,248		40,082		(23,585)		64,745
Total	$	698,442	$	422,552	$	76,293	$	1,197,287	$	888,049	$	488,173	$	92,367	$	1,468,589

Eliminations							(204,201)								(253,166)
Consolidated Net Sales							$	993,086							$	1,215,423

Contract with Customer, Contract Assets and Contract Liabilities

The following table presents our contract assets and liabilities:


(Unaudited, amounts in thousands)	10/28/2023		4/29/2023
Contract assets	$	35,206	$	44,939

Customer deposits	$	93,221	$	105,766
Deferred revenue	35,206		44,939
Total contract liabilities (1)	$	128,427	$	150,705

(1)During the six months ended October 28, 2023, we recognized revenue of $137.4 million related to our contract liability balance at April 29, 2023.

Segment Information (Tables)

6 Months Ended

Oct. 28, 2023

Segment Reporting [Abstract]

Schedule of Operating Income (Loss) by Segment

The following table presents sales and operating income (loss) by segment:


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Sales
Wholesale segment:
Sales to external customers	$	263,738	$	319,613	$	499,989	$	643,341
Intersegment sales	101,229		126,618		198,453		244,708
Wholesale segment sales	364,967		446,231		698,442		888,049

Retail segment sales	214,309		252,152		422,552		488,173

Corporate and Other:
Sales to external customers	33,388		39,567		70,545		83,909
Intersegment sales	2,844		4,070		5,748		8,458
Corporate and Other sales	36,232		43,637		76,293		92,367

Eliminations	(104,073)		(130,688)		(204,201)		(253,166)
Consolidated sales	$	511,435	$	611,332	$	993,086	$	1,215,423

Operating Income (Loss)
Wholesale segment	$	21,450	$	38,476	$	44,953	$	64,618
Retail segment	27,935		41,500		57,199		79,652
Corporate and Other	(15,773)		(18,093)		(34,014)		(29,744)
Consolidated operating income	33,612		61,883		68,138		114,526
Interest expense	(101)		(119)		(223)		(278)
Interest income	4,042		1,138		7,098		1,612
Other income (expense), net	104		183		660		228
Income before income taxes	$	37,657	$	63,085	$	75,673	$	116,088

Earnings per Share (Tables)

6 Months Ended

Oct. 28, 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				Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/28/2023		10/29/2022		10/28/2023		10/29/2022
Numerator (basic and diluted):


Net income available to common Shareholders	$	27,199	$	46,077	$	54,678	$	84,565

Denominator:
Basic weighted average common shares outstanding	43,008		43,104		43,123		43,098
Contingent common shares	296		78		289		76
Stock option dilution	97		—		67		—
Diluted weighted average common shares outstanding (1)	43,401		43,182		43,479		43,174

Earnings per Share:
Basic	$	0.63	$	1.07	$	1.27	$	1.96
Diluted	$	0.63	$	1.07	$	1.26	$	1.96

(1)Diluted earnings per share was computed using the treasury stock method.

Fair Value Measurements (Tables)

6 Months Ended

Oct. 28, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Hierarchy


At October 28, 2023
	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3		NAV(1)		Total
Assets
Marketable securities	$	—	$	9,903	$	—	$	10,153	$	20,056
Held-to-maturity investments	1,285		—		—		—		1,285

Total assets	$	1,285	$	9,903	$	—	$	10,153	$	21,341


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.

Basis of Presentation - Additional Information (Details)	Oct. 28, 2023 company
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Preferred share investments with common share warrant, number of privately-held companies	2

Basis of Presentation - Schedule of Prior Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of sales	$ 288,830	$ 361,848	$ 564,753	$ 734,909
Gross profit	222,605	249,484	428,333	480,514
Selling, general and administrative expense	$ 188,993	187,601	$ 360,195	365,988
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of sales		350,596		713,227
Gross profit		260,736		502,196
Selling, general and administrative expense		198,853		387,670
Effect of Change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of sales		11,252		21,682
Gross profit		(11,252)		(21,682)
Selling, general and administrative expense		$ (11,252)		$ (21,682)

Acquisitions (Details) $ in Thousands					6 Months Ended
Acquisitions (Details) $ in Thousands	Oct. 23, 2023 USD ($) store center	Jul. 17, 2023 USD ($) store center	Sep. 26, 2022 USD ($) store center	Jul. 18, 2022 USD ($) store center	Oct. 28, 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					$ 2,773
Goodwill					$ 208,473	$ 205,008
Lafayette, Louisiana \| Independently-owned Business
Business Acquisition [Line Items]
Number of stores acquired \| store	1
Number of distribution center acquired \| center	1
Consideration transferred	$ 2,800
Cash paid	1,800
Indefinite-lived intangible assets acquired	700
Lafayette, Louisiana \| Independently-owned Business \| Retail
Business Acquisition [Line Items]
Goodwill	$ 2,100
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		5,600
Indefinite-lived intangible assets acquired		2,100
Colorado Springs, Colorado \| Independently-owned Business \| Retail
Business Acquisition [Line Items]
Goodwill		$ 2,200
Spokane, Washington \| Independently-owned Business
Business Acquisition [Line Items]
Number of distribution center acquired \| center			1
Consideration transferred			$ 4,700
Cash paid			4,000
Indefinite-lived intangible assets acquired			$ 1,200
Spokane, Washington \| Independently-owned Business \| Retail
Business Acquisition [Line Items]
Number of stores acquired \| store			1
Goodwill			$ 3,000
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 (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023	Oct. 29, 2022	Apr. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 329,632	$ 343,374	$ 204,626
Restricted cash	3,835	3,304	3,268
Total cash, cash equivalents and restricted cash	$ 333,467	$ 346,678	$ 207,894	$ 248,856

Inventories (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 125,211	$ 116,440
Work in process	20,607	24,328
Finished goods	168,574	181,401
FIFO inventories	314,392	322,169
Excess of FIFO over LIFO	(45,912)	(45,912)
Total inventories	$ 268,480	$ 276,257

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Oct. 28, 2023 USD ($)
Roll-forward of goodwill
Balance at beginning of period	$ 205,008
Acquisitions	4,273
Translation adjustment	(808)
Balance at end of period	208,473
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	(725)
Balance at end of period	19,477
Retail Segment \| Operating Segments
Roll-forward of goodwill
Balance at beginning of period	129,360
Acquisitions	4,273
Translation adjustment	(83)
Balance at end of period	$ 133,550

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) $ in Thousands	6 Months Ended
	Oct. 28, 2023 USD ($)
Roll-forward of other intangible assets
Balance at beginning of period	$ 39,375
Acquisitions	2,773
Amortization	(508)
Translation adjustment	(125)
Balance at end of period	41,515
Finite-Lived Trade Name
Roll-forward of other intangible assets
Balance at beginning of period	2,594
Acquisitions	0
Amortization	(399)
Translation adjustment	0
Balance at end of period	2,195
Other Intangible Assets
Roll-forward of other intangible assets
Balance at beginning of period	1,887
Acquisitions	0
Amortization	(109)
Translation adjustment	(64)
Balance at end of period	1,714
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	2,773
Amortization
Translation adjustment	(61)
Balance at end of period	$ 36,451
Corporate and Other
Other intangible assets
Useful life	8 years
Maximum \| Wholesale Segment \| Operating Segments
Other intangible assets
Useful life	15 years

Investments - Components (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Summary of Investment Holdings [Line Items]
Total investments	$ 21,341	$ 24,903
Investments to enhance returns on cash
Summary of Investment Holdings [Line Items]
Total investments	8,652	11,617
Investments to fund compensation/retirement plans
Summary of Investment Holdings [Line Items]
Total investments	12,689	13,286
Short-term investments
Summary of Investment Holdings [Line Items]
Marketable Securities	6,500	5,043
Held-to-maturity investments	1,285	1,351
Total investments	7,785	6,394
Long-term investments
Summary of Investment Holdings [Line Items]
Marketable Securities	$ 13,556	$ 18,509

Investments - Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Summary of Investment Holdings [Line Items]
Gross Unrealized Gains	$ 1,165	$ 2,551
Gross Unrealized Losses	(538)	(723)
Fair Value	21,341	24,903
Equity securities
Summary of Investment Holdings [Line Items]
Gross Unrealized Gains	0	1,338
Gross Unrealized Losses	(138)	(103)
Fair Value	3,805	6,853
Fixed income
Summary of Investment Holdings [Line Items]
Gross Unrealized Gains	0	42
Gross Unrealized Losses	(400)	(620)
Fair Value	13,714	14,039
Other
Summary of Investment Holdings [Line Items]
Gross Unrealized Gains	1,165	1,171
Gross Unrealized Losses	0	0
Fair Value	$ 3,822	$ 4,011

Investments - Sales and Maturities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Sales of Marketable Securities
Proceeds from sales	$ 8,064	$ 8,418	$ 20,468	$ 12,664
Gross realized gains	1,715	22	1,876	49
Gross realized losses	(272)	$ (70)	(740)	$ (126)
Fair Value of Available-For-Sale Securities By Contractual Maturity
Within one year	6,405		6,405
Within two to five years	961		961
Securities not due at a single maturity date	6,348		6,348
Total	$ 13,714		$ 13,714

Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Product Warranties (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022	Apr. 29, 2023
Reconciliation of changes in product warranty liability
Balance as of the beginning of the period	$ 30,794	$ 27,516	$ 30,984	$ 27,036
Accruals during the period	6,957	8,453	13,622	16,279
Settlements during the period	(6,624)	(7,612)	(13,479)	(14,958)
Balance as of the end of the period	31,127	$ 28,357	31,127	$ 28,357
Product warranty liability accrued	$ 20,100		$ 20,100		$ 19,900
Minimum \| Wholesale Segment
Product Warranties
Percentage of warranty liability relating to the segment			90.00%
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 - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Stock-based compensation expense recognized for outstanding grants
Equity-based awards expense	$ 4,811	$ 3,662	$ 7,337	$ 5,079
Liability-based awards expense	(35)	18	53	146
Total stock-based compensation expense	$ 4,776	$ 3,680	$ 7,390	$ 5,225

Stock-Based Compensation - Restricted Stock, Additional Information (Details) - Restricted Stock - $ / shares	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Jul. 29, 2023	Oct. 28, 2023
Stock-Based Compensation
Number of shares or units granted (in shares)		330,140
Percentage vesting each year from date of grant	25.00%
Period from grant date for first vesting	1 year
Fair value per share (in dollars per share)			$ 27.66
Director
Stock-Based Compensation
Number of shares or units granted (in shares)			35,736
Fair value per share (in dollars per share)			$ 30.80
Minimum
Stock-Based Compensation
Period of recognition of expenses for retirement-eligible employees from the grant date	10 months

Stock-Based Compensation - Performance Shares, Additional Information (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jul. 29, 2023	Oct. 28, 2023
Performance-Based Shares
Stock-Based Compensation
Number of shares or units granted (in 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	50.00%
Percentage of payout dependent on total shareholder return	50.00%
Granted (in dollars per share)		$ 25.48
Performance Awards \| Minimum
Stock-Based Compensation
Performance award opportunity as a percentage of target award	50.00%
Performance Awards \| Maximum
Stock-Based Compensation
Performance award opportunity as a percentage of target award	200.00%
Performance Based Shares, vesting based on market conditions \| Fiscal 2022 Grant
Stock-Based Compensation
Granted (in dollars per share)		$ 34.15

Stock-Based Compensation - Stock Options, Additional Information (Details) - Stock Options	6 Months Ended
	Oct. 28, 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 Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Oct. 28, 2023	Jul. 29, 2023	Oct. 29, 2022	Jul. 30, 2022	Oct. 28, 2023	Oct. 29, 2022
Activity in accumulated other comprehensive loss
Beginning balance	$ 963,930	$ 952,097	$ 844,092	$ 819,622	$ 952,097	$ 819,622
Changes before reclassifications	(3,270)		(3,394)		(2,198)	(4,980)
Amounts reclassified to net income	55		110		393	217
Tax effect	21		83		(59)	43
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(3,194)		(3,201)		(1,864)	(4,720)
Ending balance	973,790	963,930	883,786	844,092	973,790	883,786
Components of non-controlling interest
Beginning balance	963,930	952,097	844,092	819,622	952,097	819,622
Net income	27,694	27,926	46,779	38,940	55,620	85,719
Other comprehensive loss	(3,678)	1,290	(3,605)	(2,038)	(2,388)	(5,643)
Ending balance	973,790	963,930	883,786	844,092	973,790	883,786
Accumulated other comprehensive income (loss)
Activity in accumulated other comprehensive loss
Beginning balance	(4,198)	(5,528)	(7,316)	(5,797)	(5,528)	(5,797)
Ending balance	(7,392)	(4,198)	(10,517)	(7,316)	(7,392)	(10,517)
Components of non-controlling interest
Beginning balance	(4,198)	(5,528)	(7,316)	(5,797)	(5,528)	(5,797)
Ending balance	(7,392)	(4,198)	(10,517)	(7,316)	(7,392)	(10,517)
Translation adjustment
Activity in accumulated other comprehensive loss
Beginning balance	(1,565)	(2,652)	(3,602)	(1,961)	(2,652)	(1,961)
Changes before reclassifications	(3,131)		(2,949)		(2,044)	(4,590)
Amounts reclassified to net income	0		0		0	0
Tax effect	0		0		0	0
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(3,131)		(2,949)		(2,044)	(4,590)
Ending balance	(4,696)	(1,565)	(6,551)	(3,602)	(4,696)	(6,551)
Components of non-controlling interest
Beginning balance	(1,565)	(2,652)	(3,602)	(1,961)	(2,652)	(1,961)
Ending balance	(4,696)	(1,565)	(6,551)	(3,602)	(4,696)	(6,551)
Unrealized gain (loss) on marketable securities
Activity in accumulated other comprehensive loss
Beginning balance	75	(145)	(212)	(298)	(145)	(298)
Changes before reclassifications	(139)		(445)		(154)	(390)
Amounts reclassified to net income	24		62		331	121
Tax effect	28		94		(44)	66
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	(87)		(289)		133	(203)
Ending balance	(12)	75	(501)	(212)	(12)	(501)
Components of non-controlling interest
Beginning balance	75	(145)	(212)	(298)	(145)	(298)
Ending balance	(12)	75	(501)	(212)	(12)	(501)
Net pension amortization and net actuarial loss
Activity in accumulated other comprehensive loss
Beginning balance	(2,708)	(2,731)	(3,502)	(3,538)	(2,731)	(3,538)
Changes before reclassifications	0		0		0	0
Amounts reclassified to net income	31		48		62	96
Tax effect	(7)		(11)		(15)	(23)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	24		37		47	73
Ending balance	(2,684)	(2,708)	(3,465)	(3,502)	(2,684)	(3,465)
Components of non-controlling interest
Beginning balance	(2,708)	(2,731)	(3,502)	(3,538)	(2,731)	(3,538)
Ending balance	(2,684)	(2,708)	(3,465)	(3,502)	(2,684)	(3,465)
Non-Controlling Interests
Activity in accumulated other comprehensive loss
Beginning balance	10,668	10,261	8,830	8,897	10,261	8,897
Ending balance	9,507	10,668	9,128	8,830	9,507	9,128
Components of non-controlling interest
Beginning balance	10,668	10,261	8,830	8,897	10,261	8,897
Net income	495	447	702	452	942	1,154
Other comprehensive loss	(484)	(40)	(404)	(519)	(524)	(923)
Dividends distributed to joint venture minority partners	(1,172)		0		(1,172)	0
Ending balance	$ 9,507	$ 10,668	$ 9,128	$ 8,830	$ 9,507	$ 9,128

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Revenue Recognition
Sales	$ 511,435	$ 611,332	$ 993,086	$ 1,215,423
Wholesale Segment
Revenue Recognition
Sales	263,738	319,613	499,989	643,341
Operating Segments
Revenue Recognition
Sales	615,508	742,020	1,197,287	1,468,589
Operating Segments \| Upholstered Furniture
Revenue Recognition
Sales	530,756	591,663	1,031,322	1,170,185
Operating Segments \| Casegoods Furniture
Revenue Recognition
Sales	37,542	52,505	74,459	100,693
Operating Segments \| Delivery
Revenue Recognition
Sales	54,279	66,810	104,467	132,966
Operating Segments \| Other
Revenue Recognition
Sales	(7,069)	31,042	(12,961)	64,745
Operating Segments \| Wholesale Segment
Revenue Recognition
Sales	364,967	446,231	698,442	888,049
Operating Segments \| Wholesale Segment \| Upholstered Furniture
Revenue Recognition
Sales	314,771	337,997	598,189	668,475
Operating Segments \| Wholesale Segment \| Casegoods Furniture
Revenue Recognition
Sales	20,352	30,545	40,728	58,551
Operating Segments \| Wholesale Segment \| Delivery
Revenue Recognition
Sales	43,655	56,538	83,698	112,775
Operating Segments \| Wholesale Segment \| Other
Revenue Recognition
Sales	(13,811)	21,151	(24,173)	48,248
Operating Segments \| Retail
Revenue Recognition
Sales	214,309	252,152	422,552	488,173
Operating Segments \| Retail \| Upholstered Furniture
Revenue Recognition
Sales	172,989	207,228	343,703	404,030
Operating Segments \| Retail \| Casegoods Furniture
Revenue Recognition
Sales	12,942	15,419	24,775	27,873
Operating Segments \| Retail \| Delivery
Revenue Recognition
Sales	8,869	8,172	17,112	16,188
Operating Segments \| Retail \| Other
Revenue Recognition
Sales	19,509	21,333	36,962	40,082
Corporate and Other
Revenue Recognition
Sales	36,232	43,637	76,293	92,367
Corporate and Other \| Upholstered Furniture
Revenue Recognition
Sales	42,996	46,438	89,430	97,680
Corporate and Other \| Casegoods Furniture
Revenue Recognition
Sales	4,248	6,541	8,956	14,269
Corporate and Other \| Delivery
Revenue Recognition
Sales	1,755	2,100	3,657	4,003
Corporate and Other \| Other
Revenue Recognition
Sales	(12,767)	(11,442)	(25,750)	(23,585)
Eliminations
Revenue Recognition
Sales	$ (104,073)	$ (130,688)	$ (204,201)	$ (253,166)

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Oct. 28, 2023	Apr. 29, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 35,206	$ 44,939
Customer deposits	93,221	105,766
Deferred revenue	35,206	44,939
Total contract liabilities	128,427	$ 150,705
Revenue recognized related to contract liabilities	$ 137,400

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Oct. 28, 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	177

Segment Information - Income Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Segment Reporting Information [Line Items]
Sales	$ 511,435	$ 611,332	$ 993,086	$ 1,215,423
Operating Income (Loss)	33,612	61,883	68,138	114,526
Interest expense	(101)	(119)	(223)	(278)
Interest income	4,042	1,138	7,098	1,612
Other income (expense), net	104	183	660	228
Income before income taxes	37,657	63,085	75,673	116,088
Wholesale Segment
Segment Reporting Information [Line Items]
Sales	263,738	319,613	499,989	643,341
Operating Segments
Segment Reporting Information [Line Items]
Sales	615,508	742,020	1,197,287	1,468,589
Operating Segments \| Wholesale Segment
Segment Reporting Information [Line Items]
Sales	364,967	446,231	698,442	888,049
Operating Income (Loss)	21,450	38,476	44,953	64,618
Operating Segments \| Retail Segment
Segment Reporting Information [Line Items]
Sales	214,309	252,152	422,552	488,173
Operating Income (Loss)	27,935	41,500	57,199	79,652
Corporate and Other
Segment Reporting Information [Line Items]
Sales	36,232	43,637	76,293	92,367
Operating Income (Loss)	(15,773)	(18,093)	(34,014)	(29,744)
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Sales	33,388	39,567	70,545	83,909
Intersegment sales
Segment Reporting Information [Line Items]
Sales	2,844	4,070	5,748	8,458
Intersegment sales \| Wholesale Segment
Segment Reporting Information [Line Items]
Sales	101,229	126,618	198,453	244,708
Eliminations
Segment Reporting Information [Line Items]
Sales	$ (104,073)	$ (130,688)	$ (204,201)	$ (253,166)

Income Taxes (Details)	3 Months Ended		6 Months Ended
Income Taxes (Details)	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	26.50%	25.80%	26.50%	26.20%
Statutory tax rate	21.00%

Earnings per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Numerator (basic and diluted):
Net income available to common Shareholders	$ 27,199	$ 46,077	$ 54,678	$ 84,565
Denominator:
Basic weighted average common shares outstanding (in shares)	43,008	43,104	43,123	43,098
Contingent common shares (in shares)	296	78	289	76
Stock option dilution (in shares)	97	0	67	0
Diluted weighted average common shares outstanding (in shares)	43,401	43,182	43,479	43,174
Earnings per Share:
Basic (in dollars per share)	$ 0.63	$ 1.07	$ 1.27	$ 1.96
Diluted (in dollars per share)	$ 0.63	$ 1.07	$ 1.26	$ 1.96

Earnings per Share - Antidilutive Securities (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Oct. 28, 2023	Oct. 29, 2022	Oct. 28, 2023	Oct. 29, 2022
Outstanding options
Anti-dilutive options
Outstanding options excluded from diluted share calculation (in shares)	0.5	1.5	0.7	1.5

Fair Value Measurements - Hierarchy and Transfers (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Apr. 29, 2023
Assets
Total assets	$ 21,341	$ 24,903
Recurring basis
Assets
Marketable securities	20,056	23,552
Held-to-maturity investments	1,285	1,351
Total assets	21,341	24,903
Recurring basis \| Level 1
Assets
Marketable securities	0	0
Held-to-maturity investments	1,285	1,351
Total assets	1,285	1,351
Recurring basis \| Level 2
Assets
Marketable securities	9,903	16,557
Held-to-maturity investments	0	0
Total assets	9,903	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	10,153	6,995
Held-to-maturity investments	0	0
Total assets	$ 10,153	$ 6,995