# La-Z-Boy Incorporated (LZB) Q1 2026 Financial Results Summary
On August 19, 2025, La-Z-Boy Incorporated (NYSE: LZB) announced its financial results for the first quarter of fiscal 2026, which ended on July 26, 2025. The company reported a mixed performance driven by growth in its retail and wholesale segments, offset by challenges in the Joybird brand.
## Key Highlights:
– **Sales Performance**:
– Total sales amounted to **$492 million**, a **1% decrease** compared to the same quarter last year (Q1 FY 2025: $495 million).
– **Retail Segment**:
– Written sales increased by **5%**.
– Delivered sales up by **2%**.
– Acquired 15 stores, set to close in late October, and added two new stores.
– **Wholesale Segment**:
– Delivered sales increased by **1%** due to the transition to a new West Coast centralized hub.
– **Profitability Metrics**:
– **GAAP Operating Margin**: **4.5%**, down from **6.5%** year-over-year (decrease of **200 basis points**).
– **Adjusted Operating Margin**: **4.8%**, down from **6.6%** (decrease of **180 basis points**).
– **GAAP Diluted Earnings per Share (EPS)**: **$0.44**, down from **$0.61** (a decrease of **28%**).
– **Adjusted Diluted EPS**: **$0.47**, down from **$0.62** (a decrease of **24%**).
– **Cash Flow & Returns to Shareholders**:
– Generated **$36 million** in operating cash flow.
– Returned **$22 million** to shareholders during the quarter:
– Share repurchases totaled **$13 million**.
– Dividends paid amounted to **$9 million**, compared to **$8.371 million** in Q1 FY 2025 (an increase of **8%**).
– **Segment-Specific Performance**:
– **Retail Segment**:
– Written same-store sales declined by **4%** due to challenging consumer demand, offset by increases in average ticket and design sales.
– Delivered retail sales were **$207 million**.
– Operating margin decreased to **6.3%** from **10.2%** year-over-year.
– **Wholesale Segment**:
– Sales reached **$353 million**, reflecting a **1% increase**.
– Operating margin rose to **7.1%** from **6.8%** (increase of **30 basis points**).
– **Core Challenges**:
– The decline in Joybird sales significantly affected overall results, with a **14% decrease** in written sales and **20% decrease** in delivered sales, primarily due to weaker online performance.
– **Balance Sheet and Liquidity**:
– Ended the quarter with **$319 million** in cash and no external debt.
– Capital expenditures totaled **$18 million**, primarily for store openings and remodels.
– **Future Outlook**:
– For the second quarter of FY 2026, the company anticipates sales in the range of **$510-530 million**, with an adjusted operating margin between **4.5-6.0%**.
## Additional Insights:
– La-Z-Boy has been recognized by Newsweek as one of America’s Best Retailers in 2025, ranking first in the furniture category.
– The company is progressively navigating its Century Vision strategy that aims to enhance retail store presence and brand reach, despite encountering a tough consumer environment.
## Summary of Financial Metrics:
| Metric | Q1 FY 2026 | Q1 FY 2025 | Change |
|---|---|---|---|
| Total Sales | $492 million | $495 million | -1% |
| GAAP Operating Margin | 4.5% | 6.5% | -200 bps |
| Adjusted Operating Margin | 4.8% | 6.6% | -180 bps |
| GAAP Diluted EPS | $0.44 | $0.61 | -28% |
| Adjusted Diluted EPS | $0.47 | $0.62 | -24% |
| Operating Cash Flow | $36 million | $52 million | -31% |
| Share Repurchases | $13 million | $33 million | -61% |
| Dividends Paid | $9 million | $8.371 million | +8% |
La-Z-Boy’s performance indicates a focus on strategic growth through retail expansion and a response to market conditions reflective of current consumer sentiment.
“`markdown
## LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF INCOME
*(Unaudited, amounts in thousands, except per share data)*
“`
| Quarter Ended 7/26/2025 | 7/27/2024 | |
|---|---|---|
| Sales | $492,229 | $495,532 |
| Cost of sales | $283,032 | $282,189 |
| Gross profit | $209,197 | $213,343 |
| Selling, general and administrative expense | $187,210 | $180,973 |
| Operating income | $21,987 | $32,370 |
| Interest expense | $-120 | $-210 |
| Interest income | $3,108 | $4,424 |
| Other income (expense), net | $-585 | $-618 |
| Income before income taxes | $24,390 | $35,966 |
| Income tax expense | $6,093 | $9,162 |
| Net income | $18,297 | $26,804 |
| Net (income) loss attributable to | $-93 | $-645 |
| noncontrolling interests | ||
| Net income attributable to La-Z-Boy | $18,204 | $26,159 |
| Incorporated | ||
| Basic weighted average common shares | 41,027 | 42,052 |
| Basic net income attributable to La-Z-Boy | $0.44 | $0.62 |
| Incorporated per share | ||
| Diluted weighted average common shares | 41,425 | 42,564 |
| Diluted net income attributable to | $0.44 | $0.61 |
| La-Z-Boy Incorporated per share |
“`markdown
## LA-Z-BOY INCORPORATED CONSOLIDATED BALANCE SHEET
*(Unaudited, amounts in thousands, except par value)*
“`
| 7/26/2025 | 4/26/2025 | |
|---|---|---|
| Current assets | ||
| Cash and equivalents | $318,544 | $328,449 |
| Receivables, net of allowance of $5,047 | $131,001 | $139,533 |
| at 7/26/2025 and $5,042 at 4/26/2025 | ||
| Inventories, net | $252,120 | $255,285 |
| Other current assets | $91,572 | $82,421 |
| Total current assets | $793,237 | $805,688 |
| Property, plant and equipment, net | $345,262 | $339,212 |
| Goodwill | $205,629 | $205,590 |
| Other intangible assets, net | $50,991 | $51,161 |
| Deferred income taxes – long-term | $6,738 | $7,349 |
| Right of use lease asset | $461,394 | $452,848 |
| Other long-term assets, net | $62,702 | $60,314 |
| Total assets | $1,925,953 | $1,922,162 |
| Current liabilities | ||
| Accounts payable | $99,725 | $95,984 |
| Lease liabilities, short-term | $81,470 | $80,592 |
| Accrued expenses and other current | $235,095 | $244,215 |
| liabilities | ||
| Total current liabilities | $416,290 | $420,791 |
| Lease liability, long-term | $420,235 | $410,265 |
| Other long-term liabilities | $61,406 | $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 value | $388,546 | $385,601 |
| Retained earnings | $589,209 | $597,432 |
| Accumulated other comprehensive loss | $-2,795 | $-3,574 |
| Total La-Z-Boy Incorporated | $1,016,167 | $1,020,623 |
| shareholders’ equity | ||
| Noncontrolling interests | $11,855 | $11,353 |
| Total equity | $1,028,022 | $1,031,976 |
| Total liabilities and equity | $1,925,953 | $1,922,162 |
