La-Z-Boy Incorporated Reports Solid Second Quarter Results; Advances Largest Ever Retail Acquisition And Transformative Strategic Initiatives

Fiscal 2026 Second Quarter Highlights:

• Delivered sales of $522 million, up slightly from prior year period

• Retail segment written sales increased 4%

  • Same-store sales trends improved sequentially

  • Opened five new company-owned stores (and closed three); opened 15 new stores in the last 12 months (and closed five)

• Wholesale segment delivered sales increased 2%

  • Consolidated two additional distribution centers as part of distribution and home delivery transformation

• GAAP operating margin of 6.9% and adjusted⁽¹⁾ operating margin of 7.1%

• GAAP diluted EPS of $0.70 and adjusted⁽¹⁾ diluted EPS of $0.71

• Generated $50 million in operating cash flow for the quarter, triple last year's comparable period

• Quarterly dividend increased 10% to $0.242, the 5^th consecutive year of double-digit increases

Additional Strategic Initiatives:

• Completed 15-store acquisition in southeast U.S. region; adding an estimated $80 million in annual Retail sales (approximately $40 million net to enterprise)

• Announced planned exit of non-core businesses (Kincaid and American Drew casegoods and Kincaid upholstery)

• Announced proposed closure of UK manufacturing facility

• Strategically realigned leadership and corporate staffing to focus on core businesses

• To be substantially completed by the end of the fiscal year, these initiatives combined will reduce sales by approximately $30 million, net, and increase margins by 75-100 bps
  

MONROE, Mich., Nov. 18, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported second quarter results for the period ended October 25, 2025. For the quarter, sales totaled $522 million, up slightly against the prior year comparable period, reflecting growth in Retail and Wholesale segments, offset by a decline in Joybird sales. Operating margin was 6.9% for the quarter on a GAAP basis and 7.1% on an adjusted⁽¹⁾ basis. Diluted earnings per share totaled $0.70 on a GAAP basis and $0.71 on an adjusted⁽¹⁾ basis.

Second quarter total written sales for the Retail segment (company-owned La-Z-Boy stores) grew 4% versus a year ago and written same-store sales (which exclude the impact of both newly opened stores and newly acquired stores) were down 2%. This represents a continued sequential improvement in written same-store sales trends over the last two quarters against a challenging consumer and macroeconomic environment.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “We were pleased to deliver modest sales growth, particularly in our Wholesale segment where we also again delivered margin expansion, continuing to create our own momentum in what remains a choppy landscape. We are investing in the business for the long term, as highlighted by the opening of 15 new company-owned stores in the last 12 months and the advancement of our distribution and home delivery transformation project. Furthermore, in the beginning of our third quarter, we completed the previously announced acquisition of a 15-store network in the southeast U.S. region. Our Century Vision strategy to grow our Retail store footprint and expand brand reach is working and positions us to disproportionately benefit when overall industry volumes rebound.”

Whittington added, “In addition to investing in our core, vertically integrated North American upholstery business, we are proactively taking steps to optimize our portfolio. We have announced plans to exit our non-core wholesale casegoods and upholstery businesses in the back half of the fiscal year, announced the proposed closure of our U.K. manufacturing facility, and strategically realigned our commercial leadership and corporate staffing to enhance operating efficiency. On top of this, leveraging our North American manufacturing base with ~90% of finished goods produced in the U.S., we are successfully navigating the current trade and tariff volatility. Our iconic brand, well positioned manufacturing base, strong balance sheet, and talented team provide the foundation for continued growth and margin expansion.”

Third Quarter Outlook:
Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “We expect fiscal third quarter sales to be in the range of $525-545 million (growth of 1-4% year-over-year) and adjusted operating margin⁽²⁾ to be in the range of 5.0-6.5%, reflecting advancement of our Century Vision initiatives, friction costs related to portfolio and supply chain optimizations, and a measured view on the uncertain macroeconomic backdrop.”

Key Results:

Liquidity Measures:

Fiscal 2026 Second Quarter Results versus Fiscal 2025 Second Quarter:

• Consolidated sales in the second quarter of fiscal 2026 increased slightly to $522 million versus last year, as modest growth in our Retail and Wholesale business were offset by lower delivered volume in our Joybird business

• Consolidated GAAP operating margin was 6.9% versus 7.4%

  • Consolidated adjusted⁽¹⁾ operating margin was 7.1% versus 7.5% last year, with change due to deleverage in Retail delivered same-store sales and investment in new stores, partially offset by 110 basis point benefit of lower warranty expense due to a change in our dealer warranty arrangements during the quarter

• GAAP diluted EPS was $0.70 versus $0.71 in the prior year period, and adjusted⁽¹⁾ diluted EPS was flat at $0.71 versus $0.71 last year in the comparable period

Retail Segment:

• Sales:

  • Written sales for the Retail segment (company-owned La-Z-Boy stores) increased 4% compared to the year ago period driven by new and acquired stores

    • Written same-store sales decreased 2%, a sequential improvement versus the last two quarters, as lower traffic and conversion were partially offset by higher average ticket and design sales

  • Delivered sales increased slightly to $222 million

• Operating Margin:

  • GAAP operating margin was 10.7% versus 12.6%

    • Adjusted⁽¹⁾ operating margin was 10.7% versus 12.6%, with change due to fixed cost deleverage on lower delivered same-store sales and investment in new stores
      

Wholesale Segment:

• Sales:

  • Sales increased 2% to $369 million versus last year, driven by growth in our core North America La-Z-Boy branded wholesale business

• Operating Margin:

  • GAAP operating margin was 7.9% versus 6.7%

    • Adjusted⁽¹⁾ operating margin was 8.1% versus 6.8%, with improvement driven by 160 basis point benefit of lower warranty expense due to a change in our dealer warranty arrangements during the quarter, partially offset by incremental expenses related to our distribution and home delivery transformation and increased advertising expenses
      

Corporate & Other:

• Joybird written sales increased 1%, improving sequentially from last two quarters, and driven by strength in retail store performance

• Joybird delivered sales decreased 10% to $35 million primarily due to lower delivered volume

• Corporate & Other operating loss increased versus the prior year, primarily due to expense deleverage on lower Joybird delivered sales
  

Balance Sheet and Cash Flow, Fiscal 2026 Second Quarter:

• Ended the quarter with $339 million in cash⁽³⁾ and no external debt

• Generated $50 million in cash from operating activities in the quarter, more than triple last year's comparable period, and generated $86 million in cash year-to-date

• Invested $20 million in capital expenditures, primarily related to new stores and remodels, and manufacturing investments

• Returned approximately $10 million to shareholders, including $9 million in dividends

Dividend:
On November 18, 2025, the Board of Directors declared a quarterly cash dividend of $0.242 per share on the common stock of the company, a 10% increase over the previous dividend. This represents the 5^th consecutive year of double-digit increases to the dividend. The dividend will be paid on December 15, 2025, to shareholders of record on December 4, 2025.

Conference Call:
La-Z-Boy will hold a conference call with the investment community on Wednesday, November 19, 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: 973736.

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: 53154. 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 (NYSE: LZB) is a leading vertically integrated retailer and manufacturer of high-quality, custom furniture that transforms the home. Founded on American heritage, the iconic La-Z-Boy brand has been synonymous with comfort, quality, and craftsmanship for nearly 100 years. As an end-to-end enterprise, the company manages every aspect of its business—from retail, manufacturing, and design to distribution and after-service care.

La-Z-Boy Incorporated brings timeless and modern furniture to life through a retail network of 370 La-Z-Boy stores, including 222 company-owned locations (including its most recent acquisition), and its digital platform at La-Z-Boy.com. Within the Wholesale segment, the company manufactures comfortable, high quality, custom furniture, with approximately 90% of its products produced in North America. Its Joybird^® brand is an omnichannel retailer and manufacturer of modern, custom upholstered furniture, operating 15 U.S. stores (including recently opened Easton Town Center location). With a global team of about 11,000 employees, La-Z-Boy Incorporated was named No. 1 in the furniture category on Newsweek’s 2025 list of America’s Best Retailers and continues to shape the way people live by delivering the transformational power of comfort.

Notes:
⁽¹⁾Adjusted amounts for the second quarter of fiscal 2026 exclude:

• $0.8 million pre-tax, or $0.01 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

Adjusted amounts for the second quarter of fiscal 2025 exclude:

• purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $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.

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 exiting former distribution centers to establish 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.

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

^{(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.}}

LA-Z-BOY INCORPORATED
SEGMENT INFORMATION

LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES

_{⁽¹⁾   Includes incremental expense upon the sale of inventory acquired at fair value.
⁽²⁾   Includes accelerated lease expense, severance costs, and costs associated with exiting former distribution centers to establish a new centralized hub in the western United States.
⁽³⁾   Includes amortization of intangible assets.}

LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES
SEGMENT INFORMATION