Current Status Overview
La-Z-Boy Incorporated reported results for the third quarter of Fiscal 2026 (period ended January 24, 2026). Consolidated sales increased 4% year-over-year to $541.6 million compared to $521.8 million in the prior-year quarter. GAAP operating income declined 15% to $29.8 million from $35.2 million, while GAAP operating margin decreased to 5.5% from 6.7%. Net income attributable to La-Z-Boy Incorporated fell 24% to $21.7 million from $28.4 million a year earlier. Diluted earnings per share were $0.52 compared to $0.68 in the prior-year period.
Share Price Performance
La-Z-Boy trades on the NYSE under the ticker LZB. The company did not disclose share price performance within the earnings release. Diluted weighted average shares outstanding decreased to 41.5 million from 42.1 million in the prior year quarter. The company resumed more normalized share repurchases during the quarter, buying back $14 million of stock. A quarterly cash dividend of $0.242 per share was declared.
Revenue Performance
Quarterly consolidated revenue totaled $541.6 million, up 4% year-over-year. Retail segment delivered sales increased 11% to $252 million, supported by new and acquired stores. Wholesale segment sales rose 1% to $366.6 million. Corporate and Other segment sales declined to $39.1 million from $40.7 million. For the first nine months of Fiscal 2026, revenue totaled $1.56 billion, up 1% from $1.54 billion in the prior-year period.
Market Analysis
Retail written sales increased 11% year-over-year, while written same-store sales declined 4%. Wholesale growth marked the seventh consecutive quarter of expansion in the core North America La-Z-Boy wholesale business. Joybird written sales decreased 13%, reflecting volatility in that consumer segment. Approximately 90% of upholstered products are produced in North America, reflecting the company’s vertically integrated model.
Analyst Commentary
No analyst commentary reported.
Mergers & Acquisitions
The company completed integration of a 15-store acquisition in the Southeast U.S. region. Subsequent to quarter end, La-Z-Boy completed the sale of its Kincaid upholstery business and signed a letter of intent to sell its wholesale casegoods businesses. The company also announced the planned closure of its U.K. manufacturing facility by fiscal year end.
Outlook
For the fourth quarter of Fiscal 2026, the company expects sales in the range of $560 million to $580 million. Adjusted operating margin is expected to range between 7.5% and 9.0%. Management cited a cautious view on the macroeconomic backdrop and the short-term impact of adverse weather events.