La-Z-Boy Incorporated to Acquire La-Z-Boy Furniture Galleries® Stores in Southeast Region; 15-Store Acquisition Brings Company-Owned Count to 220, 60% of Total Network

La-Z-Boy Incorporated, a global leader in the retail and manufacture of residential furniture, announced the signing of an asset purchase agreement to acquire a La-Z-Boy Furniture Galleries^® store network in the southeast region of the United States from Atlanta Furniture Galleries, LLC, owned by Tom and Amy DeGoey. The DeGoey business is the second-largest independent operator within the entire La-Z-Boy Furniture Galleries^® store network, with 15 stores, four warehouses, and approximately $80 million in annual sales.

Key Highlights:

• Significant acquisition of 15-store network in GA, FL, and TN with ~$80 million in annual sales, expected to close in late October
• Adds designated market areas (DMAs) that will enable further new store growth in highly desirable southeast region
• Largest independently owned La-Z-Boy Furniture Galleries^® acquisition in La-Z-Boy Incorporated history
• Separately, La-Z-Boy Incorporated updates fiscal first quarter sales and adjusted operating margin outlook⁽¹⁾

The acquisition will provide continuity for the highly successful southeast-based business. Once complete, the 15 stores will become part of La-Z-Boy Incorporated’s Retail reporting segment, will be immediately accretive to sales and profits, and will bring the total company-owned store count to 220, 60% of the entire La-Z-Boy Furniture Galleries^® store network. The transaction is expected to close in late October 2025, subject to customary closing conditions.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We are pleased to acquire this business in the rapidly growing and strategic southeast region. These stores are in core markets for us, including Atlanta, Orlando, Jacksonville, and Knoxville, and will pave the way for additional growth. We are grateful to Tom and Amy for their commitment to the company over the last two decades, developing one of the most successful independent La-Z-Boy licensee businesses. As strong stewards of our La-Z-Boy brand, they have made meaningful contributions, including innovative retail practices, an updated store network, and a strong group of employees. I would like to personally take the opportunity to thank Tom, who has led the business since 2004 and, along with Amy, was recognized in 2024 as our Retail Partner of the Year for the second time. We wish Tom, Amy, and their family all the best in their next phase of life.”

Tom DeGoey, Chief Executive Officer of Atlanta Furniture Galleries, LLC, said, “I am grateful to my family and colleagues for helping grow this business over the years. It has been a privilege to work with this incredible team of talented, passionate, and hard-working individuals. La-Z-Boy will have an excellent team of leaders to continue the management of day-to-day operations. I am proud of the company we have built together and I am confident that our long-time partner, La-Z-Boy Incorporated, will propel the business to new heights. It has been a pleasure to work with the La-Z-Boy Incorporated team over the years, as we have expanded the La-Z-Boy brand together.”

Whittington added, “This significant acquisition is another example of creating our own momentum in an increasingly challenging macro environment and investing for our next 100 years despite current headwinds. This is another proof point of La-Z-Boy Incorporated continuing to deliver on its Century Vision objectives and growing Retail and direct to consumer. Our vertically integrated model is a key differentiator, and we have the opportunity to further leverage the combined margin associated with earning sales and profit on both Wholesale and Retail sales. We expect a smooth and seamless transition and look forward to continuing to inspire and delight our consumers.”

The transaction is expected to be funded with cash on hand. Additional terms of the deal were not disclosed. La-Z-Boy Incorporated will provide additional financial information relating to the transaction in its fiscal year 2026 second-quarter results in November 2025. As La-Z-Boy Incorporated is already manufacturing for the acquired business and therefore, recording a portion of the annual sales in its Wholesale segment, the acquisition is currently expected to contribute approximately $40 million of additional sales annually to the company on a consolidated basis.

Separately, in light of the increasingly challenging consumer and macro environment, the company now expects its fiscal first quarter sales and adjusted operating margin⁽¹⁾ to be around the low end of the ranges in the previously-issued outlook for the period ending July 26, 2025.

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