La-Z-Boy Incorporated reported its financial results for the first quarter of fiscal 2026, revealing a slight decline in sales and profitability compared to the same period last year. The company generated revenues of $492.2 million, a decrease of 0.7% from $495.5 million in the first quarter of fiscal 2025. Net income attributable to La-Z-Boy was $18.2 million, down from $26.2 million in the prior year, resulting in a basic earnings per share of $0.44, compared to $0.62 a year earlier. The decline in profitability was attributed to increased supply chain costs and lower delivered volumes in both the international wholesale and Joybird segments.
The company's operating income fell significantly by 32.1% to $22.0 million, with an operating margin of 4.5%, down from 6.5% in the previous year. Gross profit also decreased to $209.2 million, reflecting a gross margin decline of 60 basis points due to higher distribution costs and increased promotional activity. Selling, general, and administrative expenses rose as a percentage of sales, primarily due to fixed cost deleverage from lower same-store sales in the Retail segment, which saw a 2.4% increase in sales to $207.2 million, largely driven by retail store acquisitions.
In terms of operational developments, La-Z-Boy's Retail segment reported a total written sales increase of 5%, although same-store sales decreased by 4% due to lower consumer demand amid a challenging macroeconomic environment. The Wholesale segment experienced a slight sales increase of 0.6% to $353.0 million, supported by strategic pricing and a favorable product mix. However, the Corporate and Other segment saw a significant decline in sales, primarily due to a drop in Joybird's performance, which reported a 14% decrease in written sales.
Looking ahead, La-Z-Boy remains focused on its strategic initiatives to enhance growth, particularly through expanding its retail footprint and improving its omni-channel presence. The company plans to continue investing in its La-Z-Boy Furniture Galleries® store network and is optimistic about the potential for growth in its consumer brands, including Joybird. The company has also amended its credit agreement to extend its revolving credit facility to 2030, providing additional liquidity to support its growth plans. Despite the current challenges, La-Z-Boy's management expressed confidence in the company's long-term strategy and its ability to navigate the evolving market landscape.
About LA-Z-BOY INC
La-Z-Boy Incorporated is a leading global manufacturer and distributor of residential furniture, specializing in reclining chairs, upholstered furniture, and casegoods. Its core operations include designing, marketing, importing, and retailing products through company-owned stores, independent dealers, and e-commerce platforms. The company emphasizes quality, comfort, and innovation, serving markets in North America and internationally with a focus on brand strength and customer experience.
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