Strong Written Orders Drive Record Backlog
Quarterly Dividend Increased
MONROE, Mich., Feb. 16, 2021 (GLOBE NEWSWIRE) — La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential furniture, today reported strong operating results for the fiscal 2021 third quarter ended January 23, 2021.
Fiscal 2021 third quarter versus Fiscal 2020 third quarter :
- Consolidated sales decreased 1.2% to $470.2 million
- Written same-store sales for the entire La-Z-Boy Furniture Galleries ® network increased 6.3%, with strong acceleration in January
- Consolidated operating margin:
- GAAP: 7.3% versus 11.0%
- Non-GAAP (1) : 9.5% versus 9.4%
- Wholesale (2) : 10.2% versus 11.1%
- Retail: 8.9% versus 9.8%
- Net income attributable to La-Z-Boy Incorporated per diluted share (“EPS”):
- GAAP: $0.62 versus $0.74
- Non-GAAP (1) : $0.74 versus $0.72
- Strong cash generation, with fiscal year-to-date cash from operating activities of $250 million
- Cash (3) more than doubled to $393 million at quarter end
- The company returned $7.4 million to shareholders through share repurchases and dividends during the quarter
Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy, said, “Robust written trends continue across all La-Z-Boy Incorporated businesses as consumer demand for home furnishings remains unabated. However, delivered sales declined slightly versus last year’s record third quarter due to greater-than-anticipated impacts from COVID-19 across our supply chain. We continue to add additional capacity to service our unprecedented order rate, with our supply chain team actively ramping production as quickly as possible to service customers while prioritizing the health and safety of employees. Even with these short-term challenges, we delivered a strong consolidated operating margin, including another profitable quarter for Joybird. We also continued to generate strong cash from operations and declared an increased dividend of $0.15 per share. We are well positioned to deliver continued solid financial results.”
Consolidated sales in the third quarter of fiscal 2021 decreased 1.2% to $470.2 million versus the fiscal 2020 record third quarter, affected by temporary supply chain impacts from COVID-19. Consolidated GAAP operating margin was 7.3% versus 11.0% in the prior-year quarter. Consolidated non-GAAP (1) operating margin improved to 9.5% versus 9.4% in last year’s third quarter, primarily driven by strong performance by Joybird.
For the entire La-Z-Boy Furniture Galleries ® network, written same-store sales increased 6.3% for the fiscal 2021 third quarter compared with the fiscal 2020 third quarter. Stripping out Canadian stores that were closed at various points during the quarter due to COVID-19 restrictions, written same-store sales increased 8.2% for the network. Strong momentum in January brought fiscal 2021 year-to-date written same-store sales for the network to 18% versus the prior-year period.
For the fiscal 2021 third quarter, delivered sales in the company’s Wholesale (2) segment decreased 3.9% to $350.7 million compared with the prior-year quarter. While significant demand has led to a record-level backlog, COVID-19-related issues, including plant absenteeism and shipping delays, hampered the company’s ability to increase production and delivery at planned rates and also impacted product mix. Non-GAAP (1) operating margin for the Wholesale (2) segment was 10.2% versus 11.1% for the prior-year period, primarily reflecting COVID-19-related impacts on our supply chain and increased costs to expand manufacturing capacity, partially offset by lower promotional activity in the strong demand environment.
Retail segment delivered sales decreased 0.9% to $166.0 million in the third quarter of fiscal 2021, reflecting COVID-19-related product delays. Written same-store sales for the company-owned La-Z-Boy Furniture Galleries ® stores increased 9.1% in the quarter, with strong momentum in January, reflecting positive trends across all sales metrics, including traffic, conversion and average ticket. Non-GAAP (1) operating margin for the Retail segment was 8.9% versus 9.8% in last year’s third quarter, primarily related to lower delivered sales relative to fixed costs and higher selling expenses driven by commissions paid on increased written sales, partially offset by decreased spending for marketing given robust demand and decreased travel expenses.
Within Corporate & Other, Joybird sales increased 30% to $28.6 million. Written sales increased 79% compared with the prior-year quarter, reflecting ongoing strong order trends and the strength of the brand in the online marketplace. Joybird again delivered profitable growth, improving its gross margin and investing in marketing to drive customer acquisition.
GAAP diluted EPS was $0.62 for the fiscal 2021 third quarter versus $0.74 in the prior-year quarter. Non-GAAP (1) diluted EPS was $0.74 versus $0.72 in last year’s third quarter.
Balance Sheet and Cash Flow
Year to date, the company generated $250 million in cash from operating activities, reflecting strong profit performance and a $122 million increase in customer deposits from written orders for the company’s Retail segment and Joybird. La-Z-Boy ended the period with $393 million in cash (3) , compared with $168 million in cash (3) at the end of the fiscal 2020 third quarter. The company holds $31 million in investments to enhance returns on cash versus $30 million at the end of last year’s period. Year to date, the company invested $8 million in acquisitions, $27 million in the business through capital expenditures, paid $10 million in dividends and spent $0.9 million purchasing approximately 22 thousand shares of stock in the open market under its existing authorized share repurchase program, leaving 4.5 million shares available for repurchase under the program as of January 23, 2021.
On February 16, 2021, the Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.15 per share, an increase of 7%. The dividend is payable on March 15, 2021 to shareholders of record as of March 4, 2021.
Due to the unusual business trends driven by the pandemic, La-Z-Boy is updating the perspective previously provided for the fiscal 2021 fourth quarter. The company does not intend to provide this level of forward-looking perspective regularly.
Given the continued temporary impacts of COVID-19 on the company’s manufacturing facilities and broader supply chain, and comparing with a prior-year base period which included the month-long pandemic shutdown, La-Z-Boy now expects fiscal 2021 fourth-quarter consolidated sales growth of 34% to 39% versus the prior-year quarter, and consolidated non-GAAP operating margin at the lower end of the 9% to 11% range.
(1) Non-GAAP amounts for the third quarter of fiscal 2021 exclude:
- purchase accounting charges related to acquisitions totaling $10.4 million pre-tax, or $0.20 per diluted share, primarily due to a write-up of the Joybird contingent consideration liability based on forecasted future performance, with $10.3 million included in operating income and $0.1 million included in interest expense
- income of $5.2 million pre-tax, or $0.08 per diluted share, related to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) recorded in other income related to the impact of employee retention credits
Non-GAAP amounts for the third quarter of fiscal 2020 exclude:
- purchase accounting charges of $1.4 million pre-tax, or $0.02 per diluted share, with $1.3 million included in operating income and $0.1 million included in interest expense
- a charge of $6.0 million pre-tax, or $0.10 per diluted share, related to an impairment for one investment
- income of $8.7 million pre-tax, or $0.14 per diluted share, related to the company’s supply chain optimization initiative, including the closure of the company’s Redlands, California upholstery manufacturing facility and relocation of its Newton, Mississippi leather cut-and-sew operations
Please refer to the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” for detailed information on calculating the Non-GAAP measures used in this press release and a reconciliation to the most directly comparable GAAP measure.
(2) Wholesale segment : Effective in the first quarter of fiscal 2021, in order to better align with the manner in which we view and manage the business, coupled with economic and customer channel similarities, the company revised its reportable operating segments by aggregating the former Upholstery segment with the former Casegoods segment to form the newly combined Wholesale segment. The change in reportable operating segments reflects how the company evaluates financial information used to make operating decisions. Prior-period results disclosed in this earnings release with respect to the Wholesale segment have been revised to reflect these changes.
(3) Cash includes cash, cash equivalents and restricted cash.
La-Z-Boy will hold a conference call with the investment community on Wednesday, February 17, 2021, at 8:30 a.m. Eastern time. The toll-free dial-in number is 888.506.0062; international callers may use 973.528.0011. Enter code 591426.
The call will be webcast live, with corresponding slides, and archived on the Internet. It will be available at https://lazboy.gcs-web.com/ . A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at 877.481.4010 and to international callers at 919.882.2331. Enter Replay Passcode: 39826. The webcast replay will be available for one year.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. 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, business, and industry and the effect of the novel coronavirus (“COVID-19”) pandemic on our business operations and financial results.
The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control, such as the continuing and developing impact of, and uncertainty caused by, the COVID-19 pandemic. 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 results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our fiscal 2020 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. 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.
This news release is just one part of La-Z-Boy’s financial disclosures and should be read in conjunction with other information filed with the Securities and Exchange Commission, which is available at: https://lazboy.gcs-web.com/financial-information/sec-filings . Investors and others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly investor conference calls may sign up at: https://lazboy.gcs-web.com/ .
La-Z-Boy Incorporated is one of the world’s leading residential furniture producers, marketing furniture for every room of the home. The Wholesale segment includes England, La-Z-Boy, American Drew ® , Hammary ® , and Kincaid ® . The company-owned Retail segment includes 158 of the 351 La-Z-Boy Furniture Galleries ® stores. Joybird is an e-commerce retailer and manufacturer of upholstered furniture.
The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 351 stand-alone La-Z-Boy Furniture Galleries ® stores and 563 independent Comfort Studio ® locations, in addition to in-store gallery programs for the company’s Kincaid and England operating units. Additional information is available at http://www.la-z-boy.com/ .
Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), this press release also includes Non-GAAP financial measures. Management uses these Non-GAAP financial measures when assessing our ongoing performance. This press release contains references to Non-GAAP operating income, Non-GAAP operating margin, Non-GAAP income before income taxes, Non-GAAP net income attributable to La-Z-Boy Incorporated and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share, which may exclude, as applicable, business realignment charges, purchase accounting charges, charges for our supply chain optimization initiative, benefits from the CARES Act, and refunds related to terminating the company’s defined benefit pension plan. The business realignment charges include severance costs, asset impairment costs, and costs to relocate equipment and inventory related to organizational changes we undertook as a result of our COVID-19 Action Plan. The purchase accounting charges may include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, amortization of employee retention agreements, fair value adjustments of future cash payments recorded as interest expense, and adjustments to the fair value of contingent consideration. The charges for our supply chain optimization initiative may include severance costs, accelerated depreciation expense, costs to relocate equipment and inventory, as well as other costs related to the closure, relocation and sale of certain manufacturing operations. The benefits from the CARES Act include the impact of employee retention credits. In addition, the “Business Outlook” section of this press release references the Non-GAAP financial measure of “Non-GAAP operating margin” for a future period. Non-GAAP operating margin may exclude items such as pre-tax purchase accounting charges and pre-tax business realignment charges. These and other not presently determinable items could have a material impact on the determination of operating margin on a GAAP basis and as not available at this time without unreasonable efforts, we have not provided a reference to GAAP operating margin or a reconciliation to non-GAAP operating margin for future periods in this press release. These Non-GAAP financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such Non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.
Management believes that presenting certain Non-GAAP financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, business realignment charges and the charges related to the company’s supply chain optimization initiative are dependent on the timing, size, number and nature of the operations being moved or closed, and the charges may not be incurred on a predictable cycle. Management also excludes benefits from the CARES Act and refunds related to the termination of the company’s defined benefit pension plan when assessing the company’s operating and financial performance due to the one-time nature of these transactions. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented, except for the non-tax deductible adjustment to the fair value of contingent consideration which reflects the associated GAAP tax impact in the period presented.
CONSOLIDATED STATEMENT OF INCOME
Quarter Ended Nine Months Ended (Unaudited, amounts in thousands, except per share data) 1/23/21 1/25/20 1/23/21 1/25/20 Sales $ 470,196 $ 475,856 $ 1,214,774 $ 1,336,701 Cost of sales 268,944 276,218 696,604 786,962 Gross profit 201,252 199,638 518,170 549,739 Selling, general and administrative expense 166,838 147,325 431,492 444,403 Operating income 34,414 52,313 86,678 105,336 Interest expense (298 ) (265 ) (1,103 ) (891 ) Interest income 285 844 902 2,093 Other income (expense), net 6,532 (5,998 ) 7,995 (5,390 ) Income before income taxes 40,933 46,894 94,472 101,148 Income tax expense 11,344 12,178 24,900 25,540 Net income 29,589 34,716 69,572 75,608 Net income attributable to noncontrolling interests (357 ) (204 ) (607 ) (434 ) Net income attributable to La-Z-Boy Incorporated $ 29,232 $ 34,512 $ 68,965 $ 75,174 Basic weighted average common shares 46,261 46,262 46,064 46,545 Basic net income attributable to La-Z-Boy Incorporated per share $ 0.63 $ 0.75 $ 1.50 $ 1.61 Diluted weighted average common shares 46,818 46,584 46,407 46,867 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.62 $ 0.74 $ 1.49 $ 1.60
CONSOLIDATED BALANCE SHEET
(Unaudited, amounts in thousands, except par value) 1/23/21 4/25/20 Current assets Cash and equivalents $ 390,324 $ 261,553 Restricted cash 2,703 1,975 Receivables, net of allowance of $5,000 at 1/23/21 and $7,541 at 4/25/20 129,256 99,351 Inventories, net 212,114 181,643 Other current assets 153,800 81,804 Total current assets 888,197 626,326 Property, plant and equipment, net 213,088 214,767 Goodwill 175,560 161,017 Other intangible assets, net 30,597 28,653 Deferred income taxes – long-term 15,635 20,839 Right of use lease assets 337,337 318,647 Other long-term assets, net 79,758 64,640 Total assets $ 1,740,172 $ 1,434,889 Current liabilities Accounts payable $ 96,388 $ 55,511 Short-term borrowings — 75,000 Lease liabilities, current 66,416 64,376 Accrued expenses and other current liabilities 388,043 155,282 Total current liabilities 550,847 350,169 Lease liabilities, long-term 289,406 270,162 Other long-term liabilities 111,901 98,252 Shareholders’ equity Preferred shares – 5,000 authorized; none issued — — Common shares, $1.00 par value – 150,000 authorized; 46,316 outstanding at 1/23/21 and 45,857 outstanding at 4/25/20 46,316 45,857 Capital in excess of par value 333,975 318,215 Retained earnings 401,117 343,633 Accumulated other comprehensive loss (1,982 ) (6,952 ) Total La-Z-Boy Incorporated shareholders’ equity 779,426 700,753 Noncontrolling interests 8,592 15,553 Total equity 788,018 716,306 Total liabilities and equity $ 1,740,172 $ 1,434,889
CONSOLIDATED STATEMENT OF CASH FLOWS
Nine Months Ended (Unaudited, amounts in thousands) 1/23/21 1/25/20 Cash flows from operating activities Net income $ 69,572 $ 75,608 Adjustments to reconcile net income to cash provided by (used for) operating activities (Gain)/loss on disposal of assets 133 (10,051 ) Gain on sale of investments (438 ) (468 ) Change in deferred taxes 5,189 1,238 Provision for doubtful accounts (2,483 ) 210 Depreciation and amortization 24,620 23,035 Equity-based compensation expense 9,115 7,235 Change in receivables (28,720 ) (11,178 ) Change in inventories (26,419 ) (62 ) Change in right-of use lease asset 48,864 48,972 Change in other assets (1,193 ) 5,116 Change in payables 42,354 659 Change in lease liabilities (48,963 ) (48,534 ) Change in other liabilities 158,200 27,979 Net cash provided by operating activities 249,831 119,759 Cash flows from investing activities Proceeds from disposals of assets 252 11,242 Proceeds from insurance — 1,080 Capital expenditures (26,722 ) (35,464 ) Purchases of investments (27,744 ) (26,248 ) Proceeds from sales of investments 26,317 24,688 Acquisitions (7,783 ) (6,412 ) Net cash used for investing activities (35,680 ) (31,114 ) Cash flows from financing activities Payments on debt and finance lease liabilities (75,020 ) (135 ) Stock issued for stock and employee benefit plans, net of shares withheld for taxes 6,259 828 Purchases of common stock (875 ) (35,346 ) Dividends paid to shareholders (9,700 ) (18,641 ) Dividends paid to minority interest joint venture partners (1) (8,507 ) — Net cash used for financing activities (87,843 ) (53,294 ) Effect of exchange rate changes on cash and equivalents 3,191 1,107 Change in cash, cash equivalents and restricted cash 129,499 36,458 Cash, cash equivalents and restricted cash at beginning of period 263,528 131,787 Cash, cash equivalents and restricted cash at end of period $ 393,027 $ 168,245 Supplemental disclosure of non-cash investing activities Capital expenditures included in payables $ 1,569 $ 4,026
(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.
Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/23/21 1/25/20 1/23/21 1/25/20 Sales Wholesale segment: Sales to external customers $ 274,314 $ 285,418 $ 720,258 $ 815,412 Intersegment sales 76,394 79,393 197,039 220,195 Wholesale segment sales 350,708 364,811 917,297 1,035,607 Retail segment sales 165,959 167,494 419,371 458,894 Corporate and Other: Sales to external customers 29,923 22,944 75,145 62,395 Intersegment sales 3,768 2,725 9,004 8,137 Corporate and Other sales 33,691 25,669 84,149 70,532 Eliminations (80,162 ) (82,118 ) (206,043 ) (228,332 ) Consolidated sales $ 470,196 $ 475,856 $ 1,214,774 $ 1,336,701 Operating Income (Loss) Wholesale segment $ 35,686 $ 49,046 $ 95,309 $ 112,195 Retail segment 14,707 16,383 23,173 33,272 Corporate and Other (15,979 ) (13,116 ) (31,804 ) (40,131 ) Consolidated operating income $ 34,414 $ 52,313 $ 86,678 $ 105,336
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Quarter Ended Nine Months Ended (Amounts in thousands, except per share data) 1/23/21 1/25/20 1/23/21 1/25/20 GAAP gross profit $ 201,252 $ 199,638 $ 518,170 $ 549,739 Add back: Purchase accounting charges – incremental expense upon the sale of inventory acquired at fair value — 88 429 403 Add back: Business realignment charges (2 ) — 1,303 — Add back: Supply chain optimization initiative — 1,029 (50 ) 5,292 Non-GAAP gross profit $ 201,250 $ 200,755 $ 519,852 $ 555,434 GAAP SG&A $ 166,838 $ 147,325 $ 431,492 $ 444,403 Less: Purchase accounting charges – adjustment to fair value of contingent consideration and amortization of intangible assets and retention agreements (10,257 ) (1,194 ) (13,736 ) (3,576 ) Less: Business realignment charges — — (2,580 ) — Add back: Supply chain optimization initiative gain on sale — 9,745 — 9,745 Non-GAAP SG&A $ 156,581 $ 155,876 $ 415,176 $ 450,572 GAAP operating income $ 34,414 $ 52,313 $ 86,678 $ 105,336 Add back: Purchase accounting charges 10,257 1,282 14,165 3,979 Add back: Business realignment charges (2 ) — 3,883 — Add back: Supply chain optimization initiative — (8,716 ) (50 ) (4,453 ) Non-GAAP operating income $ 44,669 $ 44,879 $ 104,676 $ 104,862 GAAP income before income taxes $ 40,933 $ 46,894 $ 94,472 $ 101,148 Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 10,449 1,448 14,657 4,505 Add back: Business realignment charges (2 ) — 3,883 — Add back: Supply chain optimization initiative charges/(gain) — (8,716 ) (50 ) (4,453 ) Less: CARES Act benefit (5,219 ) — (5,219 ) — Add back: Investment impairment — 6,000 — 6,000 Less: Pension termination refund — — — (1,900 ) Non-GAAP income before income taxes $ 46,161 $ 45,626 $ 107,743 $ 105,300 GAAP net income attributable to La-Z-Boy Incorporated $ 29,232 $ 34,512 $ 68,965 $ 75,174 Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 10,449 1,448 14,657 4,505 Less: Tax effect of purchase accounting (1,073 ) (376 ) (1,479 ) (1,138 ) Add back: Business realignment charges (2 ) — 3,883 — Less: Tax effect of business realignment charges — — (938 ) — Add back: Supply chain optimization initiative charges/(gain) — (8,716 ) (50 ) (4,453 ) Less: Tax effect of supply chain optimization initiative — 2,263 13 1,124 Less: CARES Act benefit (5,219 ) — (5,219 ) — Add back: Tax effect of CARES Act benefit 1,261 — 1,261 — Add back: Investment impairment — 6,000 — 6,000 Less: Tax effect of investment impairment — (1,558 ) — (1,515 ) Less: Pension termination refund — — — (1,900 ) Add back: Tax effect of pension termination refund — — — 480 Non-GAAP net income attributable to La-Z-Boy Incorporated $ 34,648 $ 33,573 $ 81,093 $ 78,277 GAAP net income attributable to La-Z-Boy Incorporated per diluted share $ 0.62 $ 0.74 $ 1.49 $ 1.60 Add back: Purchase accounting charges, net of tax, per share 0.20 0.02 0.27 0.07 Add back: Business realignment charges, net of tax, per share — — 0.07 — Less: Supply chain optimization initiative, net of tax, per share — (0.14 ) — (0.07 ) Less: CARES Act benefit, net of tax, per share (0.08 ) — (0.08 ) — Add back: Investment impairment, net of tax, per share — 0.10 — 0.10 Less: Pension termination refund, net of tax, per share — — — (0.03 ) Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share $ 0.74 $ 0.72 $ 1.75 $ 1.67
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Quarter Ended Nine Months Ended (Amounts in thousands) 1/23/21 % of sales 1/25/20 % of sales 1/23/21 % of sales 1/25/20 % of sales GAAP operating income (loss) Wholesale segment $ 35,686 10.2% $ 49,046 13.4% $ 95,309 10.4% $ 112,195 10.8% Retail segment 14,707 8.9% 16,383 9.8% 23,173 5.5% 33,272 7.3% Corporate and Other (15,979 ) N/M (13,116 ) N/M (31,804 ) N/M (40,131 ) N/M Consolidated GAAP operating income $ 34,414 7.3% $ 52,313 11.0% $ 86,678 7.1% $ 105,336 7.9% Non-GAAP items affecting operating income Wholesale segment $ 56 $ (8,659 ) $ 3,286 $ (4,288 ) Retail segment — 88 613 403 Corporate and Other 10,199 1,137 14,099 3,411 Consolidated Non-GAAP items affecting operating income $ 10,255 $ (7,434 ) $ 17,998 $ (474 ) Non-GAAP operating income (loss) Wholesale segment $ 35,742 10.2% $ 40,387 11.1% $ 98,595 10.7% $ 107,907 10.4% Retail segment 14,707 8.9% 16,471 9.8% 23,786 5.7% 33,675 7.3% Corporate and Other (5,780 ) N/M (11,979 ) N/M (17,705 ) N/M (36,720 ) N/M Consolidated Non-GAAP operating income $ 44,669 9.5% $ 44,879 9.4% $ 104,676 8.6% $ 104,862 7.8% N/M – Not Meaningful
Contact: Kathy Liebmann (734) 241-2438 [email protected]