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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%

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

MONROE, Mich., August 19, 2025 -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today 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.

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.”

Key Results:
(Unaudited, amounts in thousands, except per share data and percentages)Quarter Ended
7/26/20257/27/2024 Change
Sales$492,229 $495,532 (1)%
 
GAAP operating income21,987 32,370 (32)%
Adjusted operating income 23,495 32,764 (28)%
GAAP operating margin4.5%6.5%(200) bps
Adjusted operating margin4.8%6.6%(180) bps
 
GAAP net income attributable to La-Z-Boy Incorporated18,204 26,159 (30)%
Adjusted net income attributable to La-Z-Boy Incorporated19,335 26,453 (27)%
Diluted weighted average common shares41,425 42,564 
GAAP diluted earnings per share$0.44 $0.61 (28)%
Adjusted diluted earnings per share$0.47 $0.62 (24)%

Liquidity Measures:
Quarter EndedQuarter Ended
(Unaudited, amounts in thousands)7/26/20257/27/2024(Unaudited, amounts in thousands)7/26/20257/27/2024
Free Cash FlowCash Returns to Shareholders
Operating cash flow$36,292 $52,318 Share repurchases$12,505 $33,673 
Capital expenditures(18,461)(15,620)Dividends9,012 8,371 
Free cash flow$17,831 $36,698 Cash returns to shareholders$21,517 $42,044 

(Unaudited, amounts in thousands)7/26/20257/27/2024
Cash and cash equivalents$318,544 $342,270 

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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

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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

Conference Call:
La-Z-Boy will hold a conference call with the investment community on Wednesday, August 20, 2025, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 990399.

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: 52802. The webcast replay will be available for one year.

Investor Relations Contact:
Mark Becks, CFA, (734) 457-9538
mark.becks@la-z-boy.com

Media Contact:
Cara Klaer, (734) 598-0652
cara.klaer@la-z-boy.com

About La-Z-Boy:
La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers.

The Retail segment consists of nearly 210 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with La-Z-Boy.com, serve customers nationwide. Joybird®, an omni-channel retailer and manufacturer of modern upholstered furniture, has 14 stores in the U.S. (one new store opened in fiscal 2026 Q2). In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: https://www.la-z-boy.com/.

Notes:
(1)Adjusted amounts for the first quarter of fiscal 2026 exclude:
•$1.3 million pre-tax, or $0.03 per diluted share, charges related to the distribution and home delivery transformation
•purchase accounting charges related to acquisitions completed in prior periods totaling $0.2 million pre-tax, or less than $0.01 per diluted share, all included in operating income

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Adjusted amounts for the first quarter of fiscal 2025 exclude:
•purchase accounting charges related to acquisitions completed in prior periods totaling $0.4 million pre-tax, or $0.01 per diluted share, all included in operating income

Please refer to the accompanying “Reconciliation of GAAP to adjusted Financial Measures” and “Reconciliation of GAAP to adjusted Financial Measures: Segment Information” for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

(2)This reference to adjusted operating margin for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts.

(3)Cash includes cash and cash equivalents.

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, acquisitions, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.

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. 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 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at www.sec.gov. 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.

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Adjusted 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 adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, distribution and home delivery transformation charges and purchase accounting charges. The distribution and home delivery transformation charges in fiscal 2026 include accelerated lease expense, severance costs, and costs associated with establishing a new centralized hub in the western United States. The purchase accounting charges include the amortization of intangible assets and incremental expense upon the sale of inventory acquired at fair value. These adjusted 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 adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

Management believes that presenting certain adjusted 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, distribution and home delivery transformation charges are dependent on the timing, size, number and nature of the operations being opened or closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. 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 Adjusted 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.


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LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
Quarter Ended
(Unaudited, amounts in thousands, except per share data)7/26/20257/27/2024
Sales$492,229 $495,532 
Cost of sales283,032 282,189 
Gross profit209,197 213,343 
Selling, general and administrative expense187,210 180,973 
Operating income21,987 32,370 
Interest expense(120)(210)
Interest income3,108 4,424 
Other income (expense), net(585)(618)
Income before income taxes24,390 35,966 
Income tax expense6,093 9,162 
Net income18,297 26,804 
Net (income) loss attributable to noncontrolling interests(93)(645)
Net income attributable to La-Z-Boy Incorporated$18,204 $26,159 
Basic weighted average common shares41,027 42,052 
Basic net income attributable to La-Z-Boy Incorporated per share$0.44 $0.62 
Diluted weighted average common shares41,425 42,564 
Diluted net income attributable to La-Z-Boy Incorporated per share$0.44 $0.61 

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LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
(Unaudited, amounts in thousands, except par value)7/26/20254/26/2025
Current assets
Cash and equivalents$318,544 $328,449 
Receivables, net of allowance of $5,047 at 7/26/2025 and $5,042 at 4/26/2025
131,001 139,533 
Inventories, net252,120 255,285 
Other current assets91,572 82,421 
Total current assets793,237 805,688 
Property, plant and equipment, net345,262 339,212 
Goodwill205,629 205,590 
Other intangible assets, net50,991 51,161 
Deferred income taxes – long-term6,738 7,349 
Right of use lease asset461,394 452,848 
Other long-term assets, net62,702 60,314 
Total assets$1,925,953 $1,922,162 
Current liabilities
Accounts payable$99,725 $95,984 
Lease liabilities, short-term81,470 80,592 
Accrued expenses and other current liabilities235,095 244,215 
Total current liabilities416,290 420,791 
Lease liability, long-term420,235 410,265 
Other long-term liabilities61,406 59,130 
Shareholders' Equity
Preferred shares – 5,000 authorized; none issued
— — 
Common shares, $1.00 par value – 150,000 authorized; 41,207 outstanding at 7/26/2025 and 41,164 outstanding at 4/26/2025
41,207 41,164 
Capital in excess of par value388,546 385,601 
Retained earnings589,209 597,432 
Accumulated other comprehensive loss(2,795)(3,574)
Total La-Z-Boy Incorporated shareholders' equity1,016,167 1,020,623 
Noncontrolling interests11,855 11,353 
Total equity1,028,022 1,031,976 
Total liabilities and equity$1,925,953 $1,922,162 

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LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
Quarter Ended
(Unaudited, amounts in thousands)7/26/20257/27/2024
Cash flows from operating activities
Net income$18,297 $26,804 
Adjustments to reconcile net income to cash provided by operating activities
(Gain)/loss on disposal and impairment of assets(92)(117)
(Gain)/loss on sale of investments(94)(80)
Provision for doubtful accounts129 91 
Depreciation and amortization11,329 12,147 
Amortization of right-of-use lease assets20,234 22,722 
Equity-based compensation expense3,420 3,175 
Change in deferred taxes1,075 1,999 
Change in receivables8,498 17,783 
Change in inventories3,637 (6,912)
Change in other assets(4,805)(6,668)
Change in payables4,653 952 
Change in lease liabilities(20,230)(23,306)
Change in other liabilities(9,759)3,728 
Net cash provided by operating activities36,292 52,318 
Cash flows from investing activities
Proceeds from disposals of assets170 158 
Capital expenditures(18,461)(15,620)
Purchases of investments(117)(2,813)
Proceeds from sales of investments216 7,879 
Acquisitions(627)(6,797)
Net cash used for investing activities(18,819)(17,193)
Cash flows from financing activities
Payments on finance lease liabilities(225)(145)
Payments for debt issuance costs(784)— 
Stock issued for stock and employee benefit plans, net of shares withheld for taxes(5,190)7,874 
Repurchases of common stock(12,505)(33,673)
Dividends paid to shareholders(9,012)(8,371)
Net cash used for financing activities(27,716)(34,315)
Effect of exchange rate changes on cash and equivalents338 362 
Change in cash and cash equivalents(9,905)1,172 
Cash and cash equivalents at beginning of period328,449 341,098 
Cash and cash equivalents at end of period$318,544 $342,270 
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables$6,233 $2,583 








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LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
Quarter Ended
(Unaudited, amounts in thousands)7/26/20257/27/2024
Sales
Wholesale segment:
Sales to external customers$255,345 $256,020 
Intersegment sales97,612 94,880 
Wholesale segment sales352,957 350,900 
Retail segment sales207,150 202,370 
Corporate and Other:
Sales to external customers29,734 37,142 
Intersegment sales1,501 1,566 
Corporate and Other sales31,235 38,708 
Eliminations(99,113)(96,446)
Consolidated sales$492,229 $495,532 
Operating Income (Loss)
Wholesale segment$25,175 $23,999 
Retail segment13,120 20,649 
Corporate and Other(16,308)(12,278)
Consolidated operating income$21,987 $32,370 

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LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES
Quarter Ended
(Amounts in thousands, except per share data)7/26/20257/27/2024
GAAP gross profit$209,197 $213,343 
Purchase accounting charges (1)— 140 
Distribution transformation (2)1,309 — 
Adjusted gross profit$210,506 $213,483 
GAAP SG&A$187,210 $180,973 
Purchase accounting charges (3)(199)(254)
Adjusted SG&A$187,011 $180,719 
GAAP operating income$21,987 $32,370 
Purchase accounting charges199 394 
Distribution transformation charges1,309 — 
Adjusted operating income$23,495 $32,764 
GAAP income before income taxes$24,390 $35,966 
Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense199 394 
Distribution transformation charges1,309 — 
Adjusted income before income taxes$25,898 $36,360 
GAAP net income attributable to La-Z-Boy Incorporated$18,204 $26,159 
Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense199 394 
Tax effect of purchase accounting(50)(100)
Distribution transformation charges1,309 — 
Tax effect of distribution transformation(327)— 
Adjusted net income attributable to La-Z-Boy Incorporated$19,335 $26,453 
GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")$0.44 $0.61 
Purchase accounting charges, net of tax, per share— 0.01 
Distribution transformation charges, net of tax, per share0.03 — 
Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")$0.47 $0.62 
(1)Includes incremental expense upon the sale of inventory acquired at fair value.
(2)Includes accelerated lease expense, severance costs, and costs associated with establishing a new centralized hub in the western United States
(3)Includes amortization of intangible assets

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LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES
SEGMENT INFORMATION
Quarter Ended
(Amounts in thousands)7/26/2025% of sales7/27/2024% of sales
GAAP operating income (loss)
Wholesale segment$25,175 7.1%$23,999 6.8%
Retail segment13,120 6.3%20,649 10.2%
Corporate and Other(16,308)N/M(12,278)N/M
Consolidated GAAP operating income$21,987 4.5%$32,370 6.5%
Adjusted items affecting operating income
Wholesale segment$1,309 $55 
Retail segment— 140 
Corporate and Other199 199 
Consolidated adjusted items affecting operating income$1,508 $394 
Adjusted operating income (loss)
Wholesale segment$26,484 7.5%$24,054 6.9%
Retail segment13,120 6.3%20,789 10.3%
Corporate and Other(16,109)N/M(12,079)N/M
Consolidated adjusted operating income$23,495 4.8%$32,764 6.6%
N/M - Not Meaningful
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