La-Z-Boy Reports 3.8% Revenue Growth to $541.6 Million in Third Quarter

La-Z-Boy Incorporated reported a consolidated revenue of $541.6 million for the third quarter ended January 24, 2026, marking a 3.8% increase from $521.8 million in the same quarter of the previous year. For the nine months ending January 24, 2026, total sales reached $1.56 billion, a slight increase of 1.2% compared to $1.54 billion for the same period in fiscal 2025. However, net income attributable to La-Z-Boy decreased to $21.7 million, or $0.53 per share, down from $28.4 million, or $0.69 per share, in the prior year quarter. The decline in profitability was attributed to increased costs and lower same-store sales in the Retail segment.

The company experienced a decrease in operating income, which fell to $29.8 million for the third quarter, down 15.2% from $35.2 million a year earlier. The operating margin also contracted to 5.5% from 6.7% in the previous year. Contributing factors included a $3.4 million severance expense related to the planned closure of its UK manufacturing operations and a $3.0 million impairment charge on inventory. Additionally, higher distribution costs impacted gross margins, although a favorable product mix in the Retail segment provided some offset.

Strategically, La-Z-Boy has been expanding its retail footprint, acquiring several stores to enhance its market presence. Notably, the company completed the acquisition of a retail business in Atlanta, Georgia, and surrounding areas for $90.2 million, which is expected to contribute to future revenue growth. The Retail segment reported a 10.7% increase in sales for the third quarter, driven by these acquisitions and store expansions, although same-store sales declined by 4% due to challenging market conditions.

Operationally, La-Z-Boy's total assets increased to $2.09 billion as of January 24, 2026, up from $1.92 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $306.1 million, down from $328.4 million, while inventories decreased to $235.1 million from $255.3 million. The company also noted a reduction in warranty liabilities due to a change in its warranty policy, which is expected to improve future profitability.

Looking ahead, La-Z-Boy remains focused on its Century Vision strategy, aiming to enhance its market share and operating margins through continued investment in its retail network and product offerings. The company anticipates ongoing challenges in the macroeconomic environment but is committed to leveraging its brand strength and expanding its omni-channel presence to drive future growth.