La-z-boy Stock Earnings Reports

La‑Z‑Boy reported fiscal 2026 Q1 sales of $492M, down 1% year-over-year, with Retail and Wholesale growth offset by a 20% decline in Joybird. Retail delivered sales rose 2% (written sales +5%) driven by new and acquired stores but same-store written sales fell ~4%, pressuring Retail margins due to fixed-cost deleverage and investments in new stores. Wholesale delivered sales grew 1% with margin expansion (Wholesale adjusted margin 7.5%) driven by core North America performance and lower warranty/marketing expense. The company completed the first of three new centralized distribution hubs in Arizona as part of a multiyear distribution transformation intended to reduce footprint, improve inventory productivity and double delivery radius; management expects a modest margin drag during the first 2 years of transition with savings beginning in year 3 and eventual wholesale margin improvement of 50–75 bps. Liquidity remains strong: $319M cash, no external debt, $36M operating cash flow in the quarter. Capital allocation will shift more toward reinvestment (store openings, the large 15‑store Southeast acquisition, and distribution transformation) with continued dividends and minimal share repurchases for the balance of fiscal 2026. Guidance: Q2 sales $510–$530M and adjusted operating margin 4.5–6%; FY26 capex $90–$100M; tax rate ~26–27%. Management emphasized prudence given a pressured consumer but remains committed to the Century Vision strategy to expand direct-to-consumer retail, brand reach and long‑term margin expansion.