La-Z-Boy Reports 4.3% Revenue Growth to $521.8 Million in Q3 Fiscal 2025

La-Z-Boy Incorporated reported a consolidated revenue of $521.8 million for the third quarter of fiscal 2025, marking a 4.3% increase from $500.4 million in the same quarter of the previous year. For the nine months ending January 25, 2025, total sales reached $1.54 billion, up 3% from $1.49 billion year-over-year. The company’s net income attributable to La-Z-Boy was $28.4 million, or $0.68 per diluted share, compared to $28.6 million, or $0.66 per diluted share, in the prior year’s third quarter. The increase in revenue was primarily driven by same-store sales growth in the Retail segment, along with contributions from recent retail acquisitions and higher sales volumes in the Joybird business.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Gross profit for the third quarter increased to $231.4 million, up from $213.3 million, resulting in a gross margin of 44.4%, a 170 basis point improvement year-over-year. Operating income also rose to $35.2 million, reflecting an 8% increase from $32.6 million in the prior year. However, selling, general, and administrative expenses as a percentage of sales increased by 150 basis points, attributed to higher costs associated with retail expansion and acquisitions.

Strategically, La-Z-Boy has focused on expanding its retail footprint through acquisitions, having completed several transactions in fiscal 2025. Notable acquisitions include the Toledo, Ohio business for $6 million, and the Melbourne and Cocoa, Florida business for $11.4 million. These acquisitions are part of La-Z-Boy's strategy to enhance its company-owned retail operations and leverage its integrated retail model. The company now operates 197 company-owned La-Z-Boy Furniture Galleries® stores, contributing to its growth in the retail segment.

In terms of operational developments, La-Z-Boy reported an increase in customer engagement, with same-store sales rising by 7% in the third quarter. The company’s employee headcount remained stable, supporting its operational needs as it continues to expand its retail presence. The company also noted improvements in its supply chain efficiency, which contributed to lower production costs and enhanced gross margins.

Looking ahead, La-Z-Boy anticipates continued growth driven by its Century Vision strategic plan, which aims to expand market share and strengthen operating margins. The company plans to invest in its retail network and enhance its digital presence to better connect with consumers. Management expressed confidence in the company’s ability to navigate market conditions and achieve its growth objectives, supported by a solid liquidity position with cash and cash equivalents totaling $314.6 million as of January 25, 2025.