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)
MONROE, Mich., Feb. 17, 2026 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE:LZB), a global leader in the retail and manufacture of residential furniture, today reported third quarter results for the period ended January 24, 2026. For the quarter, sales totaled $542 million, up 4% against the prior year comparable period, reflecting growth in Retail and Wholesale segments, partially offset by a decline in Joybird sales. Operating margin was 5.5% for the quarter on a GAAP basis and 6.1% on an adjusted(1) basis. Diluted earnings per share totaled $0.52 on a GAAP basis and $0.61 on an adjusted(1) basis.
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 Chief Executive Officer 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 Chief Financial Officer 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(1) 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(2) 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:
(Unaudited, amounts in thousands, except per share data and percentages)
Quarter Ended
1/24/2026
1/25/2025
Change
Sales
$
541,588
$
521,777
4
%
GAAP operating income
29,811
35,168
(15
)%
Adjusted operating income
33,281
35,422
(6
)%
GAAP operating margin
5.5
%
6.7
%
(120) bps
Adjusted operating margin
6.1
%
6.8
%
(70) bps
GAAP net income attributable to La-Z-Boy Incorporated
21,650
28,429
(24
)%
Adjusted net income attributable to La-Z-Boy Incorporated
25,104
28,619
(12
)%
Diluted weighted average common shares
41,485
42,103
GAAP diluted earnings per share
$
0.52
$
0.68
(24
)%
Adjusted diluted earnings per share
$
0.61
$
0.68
(10
)%
Liquidity Measures:
Nine Months Ended
Nine Months Ended
(Unaudited, amounts in thousands)
1/24/2026
1/25/2025
(Unaudited, amounts in thousands)
1/24/2026
1/25/2025
Free Cash Flow
Cash Returns to Shareholders
Operating cash flow
$
175,690
$
125,269
Share repurchases
$
27,051
$
64,387
Capital expenditures
(56,737
)
(51,538
)
Dividends
28,082
25,871
Free cash flow
$
118,953
$
73,731
Cash returns to shareholders
$
55,133
$
90,258
(Unaudited, amounts in thousands)
1/24/2026
1/25/2025
Cash and cash equivalents
$
306,117
$
314,589
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(1) 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(1) diluted EPS of $0.61 versus $0.68 last year in the comparable period
Retail Segment:
Sales:
Written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% compared to the year ago period driven by acquired and new stores
Written same-store sales (which exclude the impact of new and acquired stores) decreased 4%, as lower traffic was partially offset by higher conversion rates, average ticket, and design sales. During the quarter, same-store sales trends were strongest in January with the exception of dramatic weather events late in the month
Delivered sales increased 11% to $252 million, primarily due to growth from acquired and new stores
Operating Margin:
GAAP operating margin was 10.5% versus 10.7%
Adjusted(1) operating margin was 10.7% versus 10.7%, as accretion from acquisitions was offset by investment in new stores and fixed cost deleverage from lower delivered same-store sales
Wholesale Segment:
Sales:
Sales increased 1% to $367 million versus last year, driven by modest growth across the majority of our businesses, including our core North America La-Z-Boy wholesale business
Operating Margin:
GAAP operating margin was 5.2% versus 6.5%
Adjusted(1) operating margin was 6.0% versus 6.5%, driven primarily by expenses related to investments in our distribution and home delivery transformation project and unfavorable foreign exchange rates
Corporate & Other:
Joybird written sales decreased 13%, as this consumer segment continues to be particularly volatile against the current macroeconomic backdrop
Joybird delivered sales decreased 3% to $36 million on lower delivered volume
Corporate & Other operating loss increased versus the prior year, primarily due to expense deleverage on lower Joybird delivered sales
Balance Sheet and Cash Flow, Fiscal 2026 Third Quarter:
Ended the quarter with $306 million in cash(3) and no external debt
Generated $89 million in cash from operating activities, increasing 57% versus the third quarter of last fiscal year. Year to date, cash flow from operations was $176 million, up 40% from last year's comparable period
Invested $18 million in capital expenditures, primarily related to La-Z-Boy stores (new stores and remodels), manufacturing-related investments, and spending related to our distribution and home delivery transformation
Returned approximately $24 million to shareholders, including $10 million in dividends, and resumed more normalized share repurchases of $14 million
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:La-Z-Boy will hold a conference call with the investment community on Wednesday, February 18, 2026, at 8:30 a.m. ET. The toll-free dial-in number is (877) 545-0523; international callers may use (973) 528-0011. Enter Participant Access Code: 662097.
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.
Investor Relations Contact:Mark Becks, CFA, (734) 457-9538[email protected]
Media Contact:Cara Klaer, (734) 598-0652[email protected]
About La-Z-Boy:La-Z-Boy Incorporated (NYSE:LZB) is a leading vertically integrated retailer and manufacturer of high-quality, custom furniture that transforms the home. Founded on American heritage, the iconic La-Z-Boy brand has been synonymous with comfort, quality, and craftsmanship for nearly 100 years. As an end-to-end enterprise, the company manages every aspect of its business—from retail, manufacturing, and design to distribution and after-service care.
La-Z-Boy Incorporated brings timeless and modern furniture to life through a retail network of over 370 La-Z-Boy stores, including 226 company-owned locations, and its digital platform at La-Z-Boy.com. Within the Wholesale segment, the company manufactures comfortable, high quality, custom furniture, with approximately 90% of its products produced in North America. Its Joybird® brand is an omnichannel retailer and manufacturer of modern, custom upholstered furniture, operating 15 U.S. stores. With a global team of about 11,000 employees, La-Z-Boy Incorporated was named to TIME's 2026 list of America's Most Iconic Companies and Newsweek's 2025 list of America's Best Retailers, ranking No. 1 in the furniture category. The company continues to shape the way people live by delivering the transformational power of comfort.
Notes:(1)Adjusted amounts for the third quarter of Fiscal 2026 exclude:
supply chain optimization charges, including severance costs related to the closure of the U.K. manufacturing operations totaling $3.4 million pre-tax, or $0.09 per diluted share
business realignment gain related to the sale of the Casegoods headquarters building and related fixed assets, partially offset by inventory impairment charges on the upholstery portion of the Casegoods business totaling $0.8 million pre-tax, or $0.01 per diluted share
purchase accounting charges related to acquisitions completed in the current and prior periods totaling $0.8 million pre-tax, or $0.01 per diluted share, all included in operating income
distribution transformation charges related to the distribution and home delivery project totaling $0.1 million pre-tax, or less than $0.01 per diluted share
Adjusted amounts for the third quarter of Fiscal 2025 exclude:
purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating income
Please refer to the accompanying "Reconciliation of GAAP to Adjusted Financial Measures" and "Reconciliation of GAAP to Adjusted Financial Measures: Segment Information" for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.
(2)This reference to adjusted operating margin for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts.
(3)Cash includes cash and cash equivalents.
Cautionary Note Regarding Forward-Looking Statements:This news release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, acquisitions, divestitures, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.
The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the "SEC"), available on the SEC's website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.
Adjusted Financial Measures:In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, distribution and home delivery transformation charges, business realignment charges or gains, supply chain optimization charges or gains, and purchase accounting charges. The distribution and home delivery transformation charges in Fiscal 2026 include accelerated lease expense, severance costs, and costs associated with exiting former distribution centers. The business realignment charges in Fiscal 2026 include a gain on sale of Casegoods headquarters building and related fixed assets and the impairment of casegoods inventory held for sale. The supply chain optimization charges in Fiscal 2026 include severance costs related to the closure of our U.K. manufacturing operations. The purchase accounting charges include the amortization of intangible assets and incremental expense upon the sale of inventory acquired at fair value. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated's results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.
Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, distribution and home delivery transformation charges, business realignment charges, and supply chain optimization charges are dependent on the timing, size, number and nature of the operations being opened or closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company's operating results over time. Where applicable, the accompanying "Reconciliation of GAAP to Adjusted Financial Measures" tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented.
LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF INCOME
Quarter Ended
Nine Months Ended
(Unaudited, amounts in thousands, except per share data)
1/24/2026
1/25/2025
1/24/2026
1/25/2025
Sales
$
541,588
$
521,777
$
1,556,297
$
1,538,336
Cost of sales
308,077
290,412
882,451
862,980
Gross profit
233,511
231,365
673,846
675,356
Selling, general and administrative expense
203,700
196,197
585,869
569,046
Operating income
29,811
35,168
87,977
106,310
Interest expense
(159
)
(102
)
(389
)
(411
)
Interest income
2,698
3,465
9,355
11,619
Other income (expense), net
(599
)
97
(1,238
)
(2,400
)
Income before income taxes
31,751
38,628
95,705
115,118
Income tax expense
9,951
9,683
26,618
29,516
Net income
21,800
28,945
69,087
85,602
Net (income) loss attributable to noncontrolling interests
(150
)
(516
)
(375
)
(977
)
Net income attributable to La-Z-Boy Incorporated
$
21,650
$
28,429
$
68,712
$
84,625
Basic weighted average common shares
41,084
41,437
41,113
41,733
Basic net income attributable to La-Z-Boy Incorporated per share
$
0.53
$
0.69
$
1.67
$
2.03
Diluted weighted average common shares
41,485
42,103
41,524
42,380
Diluted net income attributable to La-Z-Boy Incorporated per share
$
0.52
$
0.68
$
1.65
$
2.00
LA-Z-BOY INCORPORATEDCONSOLIDATED BALANCE SHEET
(Unaudited, amounts in thousands, except par value)
1/24/2026
4/26/2025
Current assets
Cash and equivalents
$
306,117
$
328,449
Receivables, net of allowance of $4,875 at 1/24/2026 and $5,042 at 4/26/2025
123,800
139,533
Inventories, net
235,051
255,285
Assets held for sale
35,904
—
Other current assets
107,823
82,421
Total current assets
808,695
805,688
Property, plant and equipment, net
340,421
