Segment Information

3 Months Ended

Jul. 29, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

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

Wholesale Segment. Our Wholesale segment consists primarily of three operating segments: La-Z-Boy, our largest operating segment, our England subsidiary, and our casegoods operating segment that sells furniture under three brands: American Drew®, Hammary® and Kincaid®. The Wholesale segment also includes our international wholesale and manufacturing

businesses. We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments. Our Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas and imports casegoods (wood) furniture, such as bedroom sets, dining room sets, entertainment centers and occasional pieces. The Wholesale segment sells directly to La-Z-Boy Furniture Galleries® stores, operators of La-Z-Boy Comfort Studio® locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

Retail Segment. Our Retail segment consists of one operating segment comprised of our 175 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores.

Corporate and Other. Corporate and Other includes the shared costs for corporate functions, including human resources, information technology, finance and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments, including our global trading company in Hong Kong and Joybird, an e-commerce retailer that manufactures upholstered furniture, such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture, such as occasional tables and other accessories. Joybird sells to the end consumer primarily online through its website, www.joybird.com. None of the operating segments included in Corporate and Other meet the requirements of reportable segments.

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

	Quarter Ended
(Unaudited, amounts in thousands)	7/29/2023		7/30/2022
Sales
Wholesale segment:
Sales to external customers	$	236,251	$	323,728
Intersegment sales	97,224		118,090
Wholesale segment sales	333,475		441,818
Retail segment sales	208,243		236,021
Corporate and Other:
Sales to external customers	37,157		44,342
Intersegment sales	2,904		4,388
Corporate and Other sales	40,061		48,730
Eliminations	(100,128)		(122,478)
Consolidated sales	$	481,651	$	604,091
Operating Income (Loss)
Wholesale segment	$	23,503	$	26,142
Retail segment	29,264		38,152
Corporate and Other	(18,241)		(11,651)
Consolidated operating income	34,526		52,643
Interest expense	(122)		(159)
Interest income	3,056		474
Other income (expense), net	556		45
Income before income taxes	$	38,016	$	53,003