La-Z-Boy reported sales of $522 million for the second quarter of fiscal 2026, showing slight growth from the previous year.
The company saw increases in both its Retail and Wholesale segments, while facing a decline in Joybird sales.
Operating margin was 6.9% on a GAAP basis and 7.1% on an adjusted basis, with diluted earnings per share at $0.70 and $0.71 respectively.
Sales Performance
Sales reached $522 million, with growth seen in Retail and Wholesale segments despite a decline in Joybird sales.
Strategic Initiatives
La-Z-Boy advanced its largest ever retail acquisition, closed non-core businesses, announced UK manufacturing facility closure, and realigned leadership for increased efficiency.
Dividend Increase
The quarterly dividend was raised by 10% to $0.242, marking the 5th consecutive year of double-digit increases.
Quarterly Cash Flow
La-Z-Boy generated $50 million in operating cash flow for the quarter, tripling the amount from the previous year.
Retail Expansion
The company opened 15 new company-owned stores in the last 12 months, driving growth in its retail footprint.
- The strategic initiatives, including the acquisition and closure of non-core businesses, are expected to reduce sales by approximately $30 million but increase margins by 75-100 basis points.
- The company's focus on efficiency and core businesses, alongside investment in its Retail segment expansion, positions it for long-term growth and profitability.
La-Z-Boy's second quarter results reflect steady growth and strategic transformation efforts aimed at optimizing its business operations and enhancing profitability in a challenging market environment. The company's focus on core businesses and retail expansion sets a strong foundation for future success.