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Financial, Retail

La-Z-Boy Reports Strong Fourth Quarter Results Led By Retail Sales Growth

La-Z-Boy reports strong Q4 results led by retail sales growth and broad-based margin improvement; finalizes multiple strategic initiatives.

6/18/2026
Laz-y-boy store exterior
MONROE, Mich. -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported fourth quarter results for the period ended April 25, 2026. For the quarter, sales totaled $570 million, flat against the prior year comparable period. Operating margin improved to 7.2% for the quarter on a GAAP basis and 9.9% on an adjusted basis. Diluted earnings per share totaled $0.81 on a GAAP basis and $1.26 on an adjusted(1) basis, both including a $0.16 impact from favorable discrete tax items.

Fourth quarter total written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% versus a year ago. Written same-store sales (which exclude the impact of both newly opened stores and newly acquired stores) were down 2%, a sequential improvement, and comparing favorably to the broader industry. During the quarter, same-store sales trends were strongest in April with positive trends continuing through May.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, "We are pleased with the strong finish to the fiscal year as our fourth quarter margin performance exceeded expectations driven by strong execution across our businesses. We continue to drive our own momentum and are playing offense, led by our Retail business expansion through new stores, acquisition of independent stores, and delighting consumers across our network. This growth has contributed to our solid results and market share expansion against an industry that remains soft. Our company-owned stores now total 230 across North America, an all-time high of 61% of our total network, and are a key pillar of our Century Vision strategy to grow La-Z-Boy brand reach."

Whittington added, "We continue to execute well across our Century Vision strategy, and are increasingly focused on our core, vertically integrated North American upholstery business where we have a clear right to win with consumers. Over the last year, we have successfully exited our wholesale casegoods businesses, streamlined our U.K. supply chain, are transforming our entire distribution and home delivery network, and we recently announced streamlining two additional smaller manufacturing plants into our larger U.S. plant network. These actions continue to optimize our enterprise to drive sustainable sales growth and margin expansion even against the current macroeconomic backdrop. As we approach our 100-year anniversary in March 2027, we will continue to drive forward with consumer-led innovation, Retail expansion, and digital transformation to position La-Z-Boy Incorporated for continued success in the next 100 years."

Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, "During the quarter, we executed well and continued to deliver on near-term expectations, while also investing for the future. While we continue to have a measured view of the external environment, we expect to continue to outperform the industry with first quarter sales in the range of $490-510 million, reflecting organic growth of up to 4% (excluding acquisitions and divestitures), and adjusted operating margin in the range of 4.0-5.5%. Lastly, as a reminder, our first quarter is generally the lowest sales and operating margin quarter in the fiscal year due to seasonally lower industry sales and our annual week long plant shutdown."

Fiscal 2026 Highlights

• Delivered consolidated sales of $2.1 billion, up 1% versus prior year

• Retail segment written sales increased 8% and delivered sales increased 6%

• Added 15 newly opened stores and acquired 15 independent La-Z-Boy stores (both the largest annual expansions in company history)

• Wholesale segment delivered sales were flat while delivering adjusted(1) operating margin improvement

• Strong capital deployment with $163 million reinvested back into the business through acquisitions and capital expenditures and $85 million returned to shareholders through share repurchases and dividends

• Fifth consecutive year of increasing quarterly dividend by 10%

Fiscal 2026 Fourth Quarter Results Versus Fiscal 2025 Fourth Quarter:

• Consolidated sales in the fourth quarter of Fiscal 2026 were flat at $570 million versus last year, as growth in our Retail business was offset by lower delivered volume in our Joybird business

• Consolidated GAAP operating margin was 7.2% versus 5.2%

• Consolidated adjusted operating margin was 9.9% versus 9.4% last year, with the change primarily driven by 100 bps from our casegoods business (due to favorable inventory adjustments and pricing before the divestiture) partially offset by expense deleverage on lower Joybird delivered sales

• GAAP diluted EPS was $0.81 versus $0.36 in the prior year period, and adjusted diluted EPS of $1.26 versus $0.92 last year in the comparable period, both of which include a $0.16 impact from favorable discrete tax items

Retail Segment

Sales

• Written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% compared to the year ago period driven by acquired and new stores

• Written same-store sales (which exclude the impact of new and acquired stores) decreased 2%, a sequential improvement, as lower traffic was partially offset by higher conversion rates, average ticket, and design sales. During the quarter, same-store sales trends were strongest in April with positive comps

• Delivered sales increased 9% to $270 million, primarily due to growth from acquired and new stores

Operating Margin

• GAAP operating margin was 16.7% versus 13.1%

• Adjusted operating margin was 13.9% versus 13.1%, driven by the positive impact of acquisitions

Wholesale Segment

Sales

• Sales decreased 2% to $393 million versus last year, driven by modest declines across most of the businesses

Operating Margin

• GAAP operating margin was 9.4% versus 2.5%

• Adjusted(1) operating margin was 10.1% versus 8.5%, driven by 150 bps from our casegoods business, primarily due to favorable inventory adjustments and pricing before the divestiture

Corporate & Other

• Joybird written sales increased 2%, driven by new retail stores and Joybird delivered sales decreased 10% to $32 million on lower delivered volume

• Corporate & Other adjusted operating loss increased versus the prior year, primarily due to expense deleverage on lower Joybird delivered sales. On a GAAP basis, we recorded a $20 million goodwill impairment on our Joybird business reflecting near-term impacts of the current macro backdrop, which have disproportionately impacted the Joybird consumer

To see the full report, click here.
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