Why did LZB's Q1 2025 earnings exceed forecasts?

La-Z-Boy's Q1 2025 earnings exceeded forecasts due to strong retail growth and strategic expansion, despite facing a challenging macroeconomic environment: 1. **Retail Segment Growth**: The retail segment saw a significant 11% increase in sales, driven by same-store sales growth and new store openings. This growth aligns with the Century Vision growth strategy. 2. **Wholesale Segment Performance**: The wholesale segment delivered sales increased by 2% to $363 million. The company's focus on margin expansion and growth in this segment contributed to the overall positive financial performance. 3. **Operational Efficiency**: La-Z-Boy achieved a non-GAAP operating margin expansion of 20 basis points to 6.8%, indicating improved operational efficiency. 4. **Financial Stability**: The company maintained a strong balance sheet with $315 million in cash and no externally funded debt, which provided financial stability and capacity for future investments. These factors, combined with effective management and strategic initiatives, enabled La-Z-Boy to surpass earnings forecasts and demonstrate robust growth in a challenging industry environment.