La-Z-Boy Reports Modest Revenue Increase to $2.13 Billion, Operating Income Declines

La-Z-Boy Incorporated reported a modest increase in revenue for the fiscal year ending April 25, 2026, with total sales reaching $2.13 billion, up 0.8% from $2.11 billion in the previous fiscal year. The company's operating income, however, declined by 4.9% to $129.2 million, resulting in an operating margin of 6.1%, down from 6.4% in fiscal 2025. The decrease in profitability was attributed to higher distribution costs and increased selling, general, and administrative expenses, which rose due to the expansion of the retail segment and lower same-store sales.

The fiscal year saw significant strategic developments, including the acquisition of 15 independently-owned La-Z-Boy Stores and four distribution centers in the Southeast U.S. for $90.2 million. This acquisition contributed to a 5.8% increase in retail segment sales, which totaled $950.7 million. Despite this growth, same-store sales in the retail segment fell by 3%, reflecting a broader decline in consumer demand amid challenging macroeconomic conditions. The wholesale segment's sales remained relatively stable, increasing by 0.2% to $1.04 billion, driven by strategic pricing and surcharges.

Operationally, La-Z-Boy's workforce decreased to approximately 10,200 employees, down from 10,600 in the previous year, primarily due to the closure of its manufacturing operations in the United Kingdom and the disposal of a portion of its Casegoods business. The company also reported a decrease in inventory levels, which fell by $36.8 million, reflecting a strategic focus on aligning production with demand. The wholesale backlog decreased to $74.9 million, down from $119.5 million, indicating a shift in order timing and consumer demand.

Looking ahead, La-Z-Boy anticipates continued challenges in the macroeconomic environment, particularly in the retail sector. The company plans to focus on expanding its retail footprint, with expectations to open 9 to 12 new stores and remodel 30 to 35 existing locations in fiscal 2027. Additionally, La-Z-Boy is undergoing a multi-year transformation of its distribution and home delivery network, which is expected to enhance operational efficiency and support future growth. The company remains committed to its Century Vision strategy, aiming to leverage its brand and expand market share as it approaches its centennial anniversary in 2027.