La-Z-Boy Incorporated Reports First Quarter Results; Led By Retail And Wholesale Delivered Sales Growth And Wholesale Margin Expansion; Retail Written Sales Up 5%

La-Z-Boy Incorporated, a global leader in the retail and manufacture of residential furniture, reported first quarter results for the period ended July 26, 2025. For the quarter, sales totaled $492 million, down 1% against the prior year comparable period, reflecting growth in Retail and Wholesale segments, offset by a decline in Joybird sales. Operating margin was 4.5% for the quarter on a GAAP basis and 4.8% on an adjusted⁽¹⁾ basis. Diluted earnings per share totaled $0.44 on a GAAP basis and $0.47 on an adjusted⁽¹⁾ basis. The company returned $22 million to shareholders for the quarter.

Fiscal 2026 First Quarter Highlights:

• Retail segment written sales increased 5%
• Retail segment delivered sales increased 2%
  • Added two stores
  • Announced 15-store acquisition, which is expected to close in late October
• Wholesale segment delivered sales increased 1%
  • Successful transition of our Arizona distribution center to new West Coast centralized hub
• GAAP operating margin of 4.5% and adjusted⁽¹⁾ operating margin of 4.8%
• GAAP diluted EPS of $0.44 and adjusted⁽¹⁾ diluted EPS of $0.47
• Generated $36 million in operating cash flow for the quarter

First quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries^®) grew 5% versus a year ago and written same-store sales (which exclude the impact of both newly opened stores and newly acquired stores) were down 4%, reflecting an increasingly challenged consumer.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We were pleased to deliver sales and margin growth in our Wholesale segment for the quarter, primarily driven by our core North America La-Z-Boy wholesale business. In addition, our Retail segment grew delivered sales and written sales for the quarter. On top of this, during the quarter we announced the acquisition of a 15-store network in the Southeast region, further highlighting the multiple levers we have to grow our business. Investments in our Century Vision strategy to grow our Retail store footprint and expand brand reach, combined with soft industry demand, had a downward impact on our margin performance this quarter, and we are actively taking steps to adjust our near-term operations and prudently navigate the current environment. Our iconic brand, vertically integrated business model, and robust balance sheet are foundational to our continued strategic growth and position us to disproportionately benefit when industry tailwinds reemerge.

Demonstrating our continued progress on strengthening our core, we are pleased to have recently been named by Newsweek as one of America’s Best Retailers in 2025, ranking #1 in the furniture category for the first time in our history. This recognition is a testament to our talented and dedicated team and our continued focus on further strengthening our product offerings, customer service, and in-store experience. In addition, we formally launched our new brand identity last week rooted in our heritage of comfort and craftsmanship. The new identity serves as a symbol of change, a signal of vitality, and a platform for growth for the brand, and we are excited about the opportunities ahead.”

Whittington added, “While continuing to advance our Century Vision strategy and drive long-term shareholder value, we are balancing our optimism in the long-term industry fundamentals and our competitive positioning with a pragmatic approach to current uneven consumer demand. In addition to strengthening our core business, we are also evaluating all alternatives to address financial pressure from non-core parts of our enterprise.”

Second Quarter Outlook:

Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “We expect fiscal second quarter sales to be in the range of $510-530 million and adjusted operating margin⁽²⁾ to be in the range of 4.5-6.0%, reflecting our continued prudent investment on strategic growth pillars while also pragmatically navigating a continued challenging consumer and macroeconomic environment.”

Fiscal 2026 First Quarter Results versus Fiscal 2025 First Quarter:

• Consolidated sales in the first quarter of fiscal 2026 decreased 1% to $492 million versus last year, as growth in our Retail and Wholesale business were more than offset by lower delivered sales in our Joybird business and in our international wholesale business due to a significant customer transition that began in the second quarter of fiscal 2025
• Consolidated GAAP operating margin was 4.5% versus 6.5%
  • Consolidated adjusted⁽¹⁾ operating margin was 4.8% versus 6.6% last year, with change due to deleverage in Retail same-store sales and investment in new stores, partially offset by lower marketing investments, warranty expense, and input costs (led by favorable inbound ocean freight and improved sourcing)
• GAAP diluted EPS was $0.44 versus $0.61, and adjusted⁽¹⁾ diluted EPS was $0.47 versus $0.62 last year in the comparable period

Retail Segment:

• Sales:
  • Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries^® stores) increased 5% compared to the year ago period driven by new and acquired stores
    • Written same-store sales decreased 4%, as lower traffic and consumer demand was partially offset by higher average ticket and design sales
  • Delivered sales increased 2% to $207 million versus last year, driven by growth from new and acquired stores
• Operating Margin:
  • GAAP operating margin was 6.3% versus 10.2%
    • Adjusted⁽¹⁾ operating margin was 6.3% versus 10.3%, with change due to deleverage in same-store sales and investment in new stores

Wholesale Segment:

• Sales:
  • Sales increased 1% to $353 million versus last year, driven by growth in our core North America La-Z-Boy wholesale business and casegoods business, partially offset by the continued impact of a significant customer transition in our international wholesale business that began in the second quarter of fiscal 2025
• Operating Margin:
  • GAAP operating margin was 7.1% versus 6.8%
    • Adjusted⁽¹⁾ operating margin was 7.5% versus 6.9%, with change driven by lower warranty and marketing expenses along with continued gross margin expansion in our core North America La-Z-Boy wholesale business partially offset by the impact of a significant customer transition in our international wholesale business

Corporate & Other:

• Joybird written sales decreased 14%, with continued store performance stronger than online business
• Joybird delivered sales decreased 20% to $28 million, with store performance stronger than the online business
• Operating loss increased versus the prior year comparable period, primarily due to lower Joybird delivered volume

Balance Sheet and Cash Flow, Fiscal 2026:

• Ended the quarter with $319 million in cash⁽³⁾ and no external debt
• Generated $36 million in cash from operating activities
• Invested $18 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries^® new stores and remodels, and manufacturing related investments
• Returned approximately $22 million to shareholders, including $13 million in share repurchases and $9 million in dividends

For full results click here.

About La-Z-Boy

La-Z-Boy Incorporated is a global leader in the manufacture and retail of residential furniture, marketing furniture for every room of the home. The Wholesale segment includes La-Z-Boy, England, American Drew^®, Hammary^®, Kincaid^® and the company’s international wholesale and manufacturing businesses. The company-owned Retail segment includes 184 of the 353 La-Z-Boy Furniture Galleries^® stores. The Corporate and Other segment includes Joybird, an e-commerce retailer and manufacturer of upholstered furniture that also has 12 stores in the U.S. The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 353 stand-alone La-Z-Boy Furniture Galleries^® stores and over 500 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 https://www.la-z-boy.com/.

Contact:

Mark Becks, CFA – Investor Relations Contact – mark.becks@la-z-boy.com

Source: La-Z-Boy Incorporated