La-Z-Boy Incorporated (LZB) Q2 2026 Financial Results Summary
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La-Z-Boy Incorporated (LZB) Q2 2026 Financial Results Summary
On November 18, 2025, La-Z-Boy Incorporated (NYSE: LZB) announced its financial results for the second quarter of fiscal 2026, which concluded on October 25, 2025. Below is a summary of the key highlights from the report.
Fiscal 2026 Second Quarter Highlights
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Sales: Total sales reached $522 million, which is a 0.3% increase compared to $521 million in the same quarter last year.
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Retail Segment Performance:
- Written sales in this segment increased by 4% year-over-year.
- Same-store sales trends showed a decline of 2%, however, this represented an improvement when compared to the previous two quarters.
- Five new company-owned stores were opened in the quarter, totaling 15 new stores opened in the last year.
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Closed three stores during the same period.
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Wholesale Segment Performance:
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Sales also grew by 2%, totaling $369 million, driven by the core North America La-Z-Boy branded business.
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Margins:
- GAAP operating margin at 6.9%, down from 7.4% the previous year (a decrease of 50 basis points).
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Adjusted operating margin at 7.1%, down from 7.5% last year (a decrease of 40 basis points).
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Earnings per Share (EPS):
- GAAP diluted EPS was $0.70, down from $0.71 a year ago (a 1% decrease).
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Adjusted diluted EPS remained flat at $0.71 year-over-year.
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Operating Cash Flow:
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Generated $50 million in operating cash flow, which is triple the amount from the same quarter last year.
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Quarterly Dividend:
- Increased by 10% to $0.242 per share, marking the 5th consecutive year of double-digit increases. This dividend will be paid on December 15, 2025.
Additional Strategic Initiatives
- La-Z-Boy completed a 15-store acquisition in the Southeast U.S. region, expected to add about $80 million in annual retail sales (approximately $40 million net).
- Plans announced to exit from non-core businesses, including Kincaid and American Drew casegoods, and Kincaid upholstery.
- Proposed closure of a UK manufacturing facility.
- Corporate restructuring to optimize leadership and corporate staffing, designed to refocus on core business sectors.
- These initiatives are estimated to reduce net sales by around $30 million while increasing margins by 75-100 basis points.
Financial Metrics Comparison (Q2 FY2026 vs. Q2 FY2025)
- Sales: $522 million vs. $521 million (+0.3%)
- GAAP Operating Income: $36.2 million vs. $38.8 million (-7%)
- Adjusted Operating Income: $37.1 million vs. $39.0 million (-5%)
- GAAP Operating Margin: 6.9% vs. 7.4% (-50 bps)
- Adjusted Operating Margin: 7.1% vs. 7.5% (-40 bps)
- GAAP Net Income: $28.9 million vs. $30.0 million (-4%)
- Adjusted Net Income: $29.6 million vs. $30.2 million (-2%)
- Diluted EPS: $0.70 vs. $0.71 (-1%)
- Adjusted Diluted EPS: $0.71 vs. $0.71 (no change)
Balance Sheet and Cash Flow Details
- Cash and cash equivalents totaled $339 million, compared to $303 million last year.
- Free cash flow for the quarter was $47.4 million, compared to $35.5 million for the same period last year.
- Total cash returns to shareholders were approximately $31.4 million, down significantly from $69.9 million the previous year.
Outlook for Q3 2026
- Fiscal third quarter sales are expected to range between $525 million and $545 million, representing a growth of 1-4% year-over-year.
- Adjusted operating margins are projected to be between 5.0% and 6.5% due to ongoing strategic initiatives and macroeconomic factors.
La-Z-Boy Incorporated continues to adapt and transform in a challenging market, clearly outlining its strategies and expectations for the future while maintaining a commitment to shareholder value through dividend increases.
| Quarter Ended | Six Months Ended | |||
|---|---|---|---|---|
| 10/25/2025 | 10/26/2024 | 10/25/2025 | 10/26/2024 | |
| Sales | $522,480 | $521,027 | $1,014,709 | $1,016,559 |
| Cost of sales | 291,342 | 290,379 | 574,374 | 572,568 |
| Gross profit | 231,138 | 230,648 | 440,335 | 443,991 |
| Selling, general and administrative expense | 194,959 | 191,876 | 382,169 | 372,849 |
| Operating income | 36,179 | 38,772 | 58,166 | 71,142 |
| Interest expense | -110 | -99 | -230 | -309 |
| Interest income | 3,549 | 3,730 | 6,657 | 8,154 |
| Other income (expense), net | -54 | -1,879 | -639 | -2,497 |
| Income before income taxes | 39,564 | 40,524 | 63,954 | 76,490 |
| Income tax expense | 10,574 | 10,671 | 16,667 | 19,833 |
| Net income | 28,990 | 29,853 | 47,287 | 56,657 |
| Net (income) loss attributable to | -132 | 184 | -225 | -461 |
| noncontrolling interests | ||||
| Net income attributable to La-Z-Boy | $28,858 | $30,037 | $47,062 | $56,196 |
| Incorporated | ||||
| Basic weighted average common shares | 41,227 | 41,708 | 41,127 | 41,880 |
| Basic net income attributable | $0.70 | $0.72 | $1.14 | $1.34 |
| La-Z-Boy Incorporated per share | ||||
| Diluted weighted average common shares | 41,387 | 42,154 | 41,325 | 42,316 |
| Diluted net income attributable | $0.70 | $0.71 | $1.14 | $1.33 |
| La-Z-Boy Incorporated per share |
| Current assets | 10/25/2025 | 4/26/2025 |
|---|---|---|
| Cash and equivalents | $338,506 | $328,449 |
| Receivables, net of allowance of $5,124 at 10/25/2025 and $5,042 at 4/26/2025 | 138,308 | 139,533 |
| Inventories, net | 225,566 | 255,285 |
| Assets held for sale | 29,436 | — |
| Other current assets | 91,443 | 82,421 |
| Total current assets | 823,259 | 805,688 |
| Property, plant and equipment, net | 348,777 | 339,212 |
| Goodwill | 205,556 | 205,590 |
| Other intangible assets, net | 49,581 | 51,161 |
| Deferred income taxes – long-term | 6,805 | 7,349 |
| Right of use lease asset | 461,172 | 452,848 |
| Other long-term assets, net | 63,608 | 60,314 |
| Total assets | $1,958,758 | $1,922,162 |
| Current liabilities | ||
| Accounts payable | $103,992 | $95,984 |
| Lease liabilities, short-term | 82,661 | 80,592 |
| Accrued expenses and other current liabilities | 237,068 | 244,215 |
| Total current liabilities | 423,721 | 420,791 |
| Lease liability, long-term | 420,257 | 410,265 |
| Other long-term liabilities | 63,323 | 59,130 |
| Shareholders’ Equity | ||
| Preferred shares – 5,000 authorized; none issued | — | — |
| Common shares, $1.00 par value – 150,000 authorized; 41,249 outstanding at 10/25/2025 and 41,164 outstanding at 4/26/2025 | 41,249 | 41,164 |
| Capital in excess of par value | 393,315 | 385,601 |
| Retained earnings | 608,344 | 597,432 |
| Accumulated other comprehensive loss | -3,318 | -3,574 |
| Total La-Z-Boy Incorporated shareholders’ equity | 1,039,590 | 1,020,623 |
| Noncontrolling interests | 11,867 | 11,353 |
| Total equity | 1,051,457 | 1,031,976 |
| Total liabilities and equity | $1,958,758 | $1,922,162 |