La-z-boy Stock Earnings Reports

La-Z-Boy reported modest quarter-over-quarter sales growth with delivered sales of $522M. Consolidated adjusted operating margin was 7.1% and adjusted EPS was $0.71, roughly flat year-over-year. Retail delivered sales rose slightly (written sales +4%; written same-store sales -2% but improving sequentially) while Wholesale delivered sales grew ~2%, driven by core North American La-Z-Boy. Joybird delivered sales declined (~10% quarter) and its operating loss widened. The company completed a large strategic 15-store acquisition (Southeast U.S.), adding scale to retail and estimated to contribute ~$80M in annual retail sales (~$40M net to consolidated company). Management announced exits of noncore casegoods businesses (Kincaid, American Drew, Kincaid upholstery), a proposed closure of the U.K. manufacturing facility, and a senior leadership/corporate realignment; these actions are expected to be substantially completed by year-end. Supply-chain transformation continues (consolidation toward 3 DC hubs from 15), with two more DC consolidations this quarter and estimated long-term wholesale margin uplift of 50–75 bps (50 bps enterprise equivalent). Liquidity remains healthy: $339M cash, no externally-funded debt, $50M operating cash flow in the quarter (triple prior year), capex guidance $90–$100M, and the Board increased the dividend by 10% (fifth consecutive year of double-digit increases). FYQ3 guidance: sales $525–$545M (up 1–4% YoY) and adjusted operating margin 5–6.5%, reflecting transformation friction and macro uncertainty. Management expects the combined strategic actions (15-store acquisition, casegoods exits, UK facility closure, reorg) to net ~($30M) annual sales with a 75–100 bps enterprise adjusted operating margin improvement once complete. Share repurchase authorization remains with ~3.4M shares available.