La-Z-Boy Incorporated Reports Third Quarter Financial Results

February 18, 2026  by Karen Parrish in Business Strategy, Industry   

Third quarter total written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% 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%. During the quarter, same-store sales trends were strongest in January with the exception of adverse weather, which slowed traffic late in the month.

Melinda D. Whittington, board chair, president and CEO of La-Z-Boy Incorporated, said, “Our strong third quarter results are proof that we continue to strengthen our enterprise and increase the agility of our business. Amid the ongoing challenging consumer environment, we continue to create our own momentum, led by Retail expansion through both acquired and new stores, driving double-digit sales growth in our written and delivered business in the quarter. Over the last twelve months, we have added 29 net company-owned stores, reflecting 16 new, 17 acquired, and four closed. And our current proportion of company-owned stores is now at an all-time high of ~60% of total network. Growing our La-Z-Boy brand reach by expanding our direct-to-consumer business remains a key pillar of our Century Vision strategy.”

“Furthermore, the momentum in our Wholesale segment remains solid, delivering our seventh consecutive quarter of growth in our core North America La-Z-Boy wholesale business. In addition, we are making meaningful progress on the strategic initiatives announced last quarter to focus on our core business of branded, customized upholstered furniture. Our vertically integrated model with ~90% of upholstered products produced in the U.S. is a key competitive advantage. This has served as the foundation throughout our 99-year history and continues to be a strength as we navigate the challenging macroeconomic environment.”

Whittington added, “As a testament to our enduring impact and cultural relevance, La-Z-Boy Incorporated has been recognized by TIME magazine as one of America’s Most Iconic Companies for 2026. This award reflects the lasting connection generations of families have built with our beloved brand. Looking ahead, we will continue to honor our heritage of comfort and quality while evolving to succeed in any environment, guided by our mission of transforming rooms, homes, and communities.”

Fourth Quarter Outlook:
Taylor Luebke, SVP and CFO of La-Z-Boy Incorporated, said, “During the quarter, we made meaningful advancements in our Century Vision strategic initiatives and executed well operationally, with delivered sales and adjusted operating margin both towards the high end of our guidance range even in a challenging environment. We expect fourth quarter sales to be in the range of $560-580 million and adjusted operating margin to be in the range of 7.5-9.0%, reflecting a continued cautious view on the macroeconomic backdrop as well as the short-term impact of recent adverse weather events.”

Key Results & Highlights:

Fiscal 2026 Third Quarter Highlights:

- Delivered sales of $542 million
Up 4% versus prior year

- Retail segment written sales increased 11% and delivered sales increased 11%
Opened four new company-owned stores in the quarter and 16 in the last 12 months

- Wholesale segment delivered sales increased 1%
Completed western U.S. phase of distribution and home delivery transformation project

- GAAP operating margin of 5.5% and adjusted⁽¹⁾ operating margin of 6.1%

- GAAP diluted EPS of $0.52 and adjusted⁽¹⁾ diluted EPS of $0.61

- Generated $89 million in operating cash flow for the quarter, a 57% increase versus last year's comparable period

Further Progress On Strategic Initiatives:

- Successfully integrated 15-store acquisition in southeast U.S. region

- Formally announced planned closure of U.K. manufacturing facility; production set to cease by fiscal year end

- Completed sale of Kincaid upholstery business subsequent to third quarter close

- Signed letter of intent for sale of wholesale casegoods businesses (American Drew and Kincaid)

Fiscal 2026 Third Quarter Results versus Fiscal 2025 Third Quarter:

- Consolidated sales in the third quarter of Fiscal 2026 increased 4% to $542 million versus last year, as growth in our Retail and Wholesale business was partially offset by lower delivered volume in our Joybird business

- Consolidated GAAP operating margin was 5.5% versus 6.7%

- Consolidated adjusted operating margin was 6.1% versus 6.8% last year, with the change driven by investments in our distribution and home delivery transformation project

- GAAP diluted EPS was $0.52 versus $0.68 in the prior year period, and adjusted diluted EPS of $0.61 versus $0.68 last year in the comparable period

Dividend:
On February 17, 2026, the Board of Directors declared a quarterly cash dividend of $0.242 per share on the common stock of the company. The dividend will be paid on March 13, 2026, to shareholders of record on March 3, 2026.

Conference Call:

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: 53583. The webcast replay will be available for one year.