La-Z-Boy (NYSE: LZB) posts 4% Q3 sales gain, softer EPS, strong cash

Rhea-AI Filing Summary

La-Z-Boy Incorporated reported fiscal 2026 third quarter results showing modest growth but weaker profits. Sales reached $541.6 million, up 4% from the prior year, driven by an 11% increase in Retail segment written and delivered sales and a 1% gain in Wholesale sales, partially offset by lower Joybird volume.

Profitability declined as GAAP operating margin fell to 5.5% from 6.7%, and GAAP diluted EPS dropped to $0.52 from $0.68. On an adjusted basis, operating margin was 6.1% and diluted EPS $0.61, both below last year. The company cited investments in its distribution and home delivery transformation and supply chain optimization costs, including the planned closure of its U.K. manufacturing facility.

Cash generation was strong, with $89 million in operating cash flow for the quarter, up 57%, and cash and equivalents of $306 million with no external debt. La-Z-Boy advanced its portfolio shift, integrating a 15-store acquisition, completing the sale of the Kincaid upholstery business, and signing a letter of intent to sell its wholesale casegoods brands. Management expects fourth quarter sales of $560–$580 million and adjusted operating margin of 7.5–9.0%, and declared a quarterly dividend of $0.242 per share.

Insights

Equity Research Analyst

Solid sales and cash flow, but margins and EPS under pressure.

La-Z-Boy delivered 4% sales growth to $541.6M, led by an 11% increase in Retail written and delivered sales and a seventh consecutive quarter of growth in its core North America wholesale business. However, Joybird written sales fell 13%, highlighting continued weakness in that channel.

Margins compressed as GAAP operating margin declined from 6.7% to 5.5%, and GAAP diluted EPS fell 24% to $0.52. Even on an adjusted basis, operating margin slipped to 6.1% and EPS to $0.61, reflecting distribution and supply chain investments and costs tied to closing the U.K. manufacturing facility and Casegoods realignment.

Despite softer earnings, cash metrics were strong: operating cash flow rose 57% to $89M in the quarter and year-to-date free cash flow reached $118.9M. With $306.1M of cash and no external debt as of 1/24/2026, the balance sheet supports continued dividends and resumed “more normalized” buybacks. Guidance for Q4 FY2026 calls for sales of $560–$580M and adjusted operating margin of 7.5–9.0%, signaling expectations for better profitability even as management maintains a cautious view of the macro environment.

0000057131False00000571312026-02-172026-02-17

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			Date of Report (Date of Earliest Event Reported):						February 17, 2026
LA-Z-BOY INCORPORATED
(Exact name of registrant as specified in its charter)

Michigan

1-9656

38-0751137

(State or other jurisdiction of

(Commission

(IRS Employer

incorporation)

File Number)

Identification No.)

One La-Z-Boy Drive,

Monroe,

Michigan

48162-5138

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code (734) 242-1444

N/A

      (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

LZB

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐                                                         

Item 2.02  Results of Operations and Financial Condition.

On February 17, 2026, La-Z-Boy Incorporated (the “Company”) issued a news release to report the Company’s financial results for the fiscal quarter ended January 24, 2026. A copy of the news release is attached to this Current Report on Form 8-K as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure.

The information in Items 2.02 and 7.01 of this report and the related exhibit (Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference in any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01  Financial Statements and Exhibits.

    (d)        The following exhibits are furnished as part of this report:

Description
99.1						News Release Dated February 17, 2026
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LA-Z-BOY INCORPORATED

(Registrant)

Date: February 17, 2026

BY:/s/ Jennifer L. McCurry

Jennifer L. McCurry
Vice President, Corporate Controller and Chief Accounting Officer

EXHIBIT 99.1

La-Z-Boy Incorporated Reports Strong Third Quarter Results Led By Double-Digit Retail Sales Growth; Drives Significant Progress On Strategic Initiatives

Fiscal 2026 Third Quarter Highlights:

•Delivered sales of $542 million

–Up 4% versus prior year

•Retail segment written sales increased 11% and delivered sales increased 11%

–Opened four new company-owned stores in the quarter and 16 in the last 12 months

•Wholesale segment delivered sales increased 1%

–Completed western U.S. phase of distribution and home delivery transformation project

•GAAP operating margin of 5.5% and adjusted(1) operating margin of 6.1%

•GAAP diluted EPS of $0.52 and adjusted(1) diluted EPS of $0.61

•Generated $89 million in operating cash flow for the quarter, a 57% increase versus last year's comparable period

Further Progress On Strategic Initiatives:

•Successfully integrated 15-store acquisition in southeast U.S. region

•Formally announced planned closure of U.K. manufacturing facility; production set to cease by fiscal year end

•Completed sale of Kincaid upholstery business subsequent to third quarter close

•Signed letter of intent for sale of wholesale casegoods businesses (American Drew and Kincaid)

MONROE, Mich., February 17, 2026 -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported third quarter results for the period ended January 24, 2026. For the quarter, sales totaled $542 million, up 4% against the prior year comparable period, reflecting growth in Retail and Wholesale segments, partially offset by a decline in Joybird sales. Operating margin was 5.5% for the quarter on a GAAP basis and 6.1% on an adjusted(1) basis. Diluted earnings per share totaled $0.52 on a GAAP basis and $0.61 on an adjusted(1) basis.

Third quarter total written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% versus a year ago and written same-store sales (which exclude the impact of both newly opened stores and newly acquired stores) were down 4%. During the quarter, same-store sales trends were strongest in January with the exception of adverse weather, which slowed traffic late in the month.

Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our strong third quarter results are proof that we continue to strengthen our enterprise and increase the agility of our business. Amid the ongoing challenging consumer environment, we continue to create our own momentum, led by Retail expansion through both acquired and new stores, driving double-digit sales growth in our written and delivered business in the quarter. Over the last twelve months, we have added 29 net company-owned stores, reflecting 16 new, 17 acquired, and four closed. And our current proportion of company-owned stores is now at an all-time high of ~60% of total network. Growing our

La-Z-Boy brand reach by expanding our direct-to-consumer business remains a key pillar of our Century Vision strategy.

Furthermore, the momentum in our Wholesale segment remains solid, delivering our seventh consecutive quarter of growth in our core North America La-Z-Boy wholesale business. In addition, we are making meaningful progress on the strategic initiatives announced last quarter to focus on our core business of branded, customized upholstered furniture. Our vertically integrated model with ~90% of upholstered products produced in the U.S. is a key competitive advantage. This has served as the foundation throughout our 99-year history and continues to be a strength as we navigate the challenging macroeconomic environment.”

Whittington added, “As a testament to our enduring impact and cultural relevance, La-Z-Boy Incorporated has been recognized by TIME magazine as one of America’s Most Iconic Companies for 2026. This award reflects the lasting connection generations of families have built with our beloved brand. Looking ahead, we will continue to honor our heritage of comfort and quality while evolving to succeed in any environment, guided by our mission of transforming rooms, homes, and communities.”

Fourth Quarter Outlook:

Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “During the quarter, we made meaningful advancements in our Century Vision strategic initiatives and executed well operationally, with delivered sales and adjusted(1) operating margin both towards the high end of our guidance range even in a challenging environment. We expect fourth quarter sales to be in the range of $560-580 million and adjusted operating margin(2) to be in the range of 7.5-9.0%, reflecting a continued cautious view on the macroeconomic backdrop as well as the short-term impact of recent adverse weather events.”

Key Results:

(Unaudited, amounts in thousands, except per share data and percentages)						Quarter Ended
						1/24/2026						1/25/2025						Change
Sales						$	541,588					$	521,777					4%
GAAP operating income						29,811						35,168						(15)%
Adjusted operating income						33,281						35,422						(6)%
GAAP operating margin						5.5%						6.7%						(120) bps
Adjusted operating margin						6.1%						6.8%						(70) bps
GAAP net income attributable to La-Z-Boy Incorporated						21,650						28,429						(24)%
Adjusted net income attributable to La-Z-Boy Incorporated						25,104						28,619						(12)%
Diluted weighted average common shares						41,485						42,103
GAAP diluted earnings per share						$	0.52					$	0.68					(24)%
Adjusted diluted earnings per share						$	0.61					$	0.68					(10)%

2

Liquidity Measures:

						Nine Months Ended																		Nine Months Ended
(Unaudited, amounts in thousands)						1/24/2026						1/25/2025						(Unaudited, amounts in thousands)						1/24/2026						1/25/2025
Free Cash Flow																		Cash Returns to Shareholders
Operating cash flow						$	175,690					$	125,269					Share repurchases						$	27,051					$	64,387
Capital expenditures						(56,737)						(51,538)						Dividends						28,082						25,871
Free cash flow						$	118,953					$	73,731					Cash returns to shareholders						$	55,133					$	90,258

(Unaudited, amounts in thousands)						1/24/2026						1/25/2025
Cash and cash equivalents						$	306,117					$	314,589

Fiscal 2026 Third Quarter Results versus Fiscal 2025 Third Quarter:

•Consolidated sales in the third quarter of Fiscal 2026 increased 4% to $542 million versus last year, as growth in our Retail and Wholesale business was partially offset by lower delivered volume in our Joybird business

•Consolidated GAAP operating margin was 5.5% versus 6.7%

–Consolidated adjusted(1) operating margin was 6.1% versus 6.8% last year, with the change driven by investments in our distribution and home delivery transformation project

•GAAP diluted EPS was $0.52 versus $0.68 in the prior year period, and adjusted(1) diluted EPS of $0.61 versus $0.68 last year in the comparable period

Retail Segment:

•Sales:

–Written sales for the Retail segment (company-owned La-Z-Boy stores) increased 11% compared to the year ago period driven by acquired and new stores

▪Written same-store sales (which exclude the impact of new and acquired stores) decreased 4%, as lower traffic was partially offset by higher conversion rates, average ticket, and design sales. During the quarter, same-store sales trends were strongest in January with the exception of dramatic weather events late in the month

–Delivered sales increased 11% to $252 million, primarily due to growth from acquired and new stores

•Operating Margin:

–GAAP operating margin was 10.5% versus 10.7%

▪Adjusted(1) operating margin was 10.7% versus 10.7%, as accretion from acquisitions was offset by investment in new stores and fixed cost deleverage from lower delivered same-store sales

Wholesale Segment:

•Sales:

–Sales increased 1% to $367 million versus last year, driven by modest growth across the majority of our businesses, including our core North America La-Z-Boy wholesale business

•Operating Margin:

–GAAP operating margin was 5.2% versus 6.5%

▪Adjusted(1) operating margin was 6.0% versus 6.5%, driven primarily by expenses related to investments in our distribution and home delivery transformation project and unfavorable foreign exchange rates

3

Corporate & Other:

•Joybird written sales decreased 13%, as this consumer segment continues to be particularly volatile against the current macroeconomic backdrop

•Joybird delivered sales decreased 3% to $36 million on lower delivered volume

•Corporate & Other operating loss increased versus the prior year, primarily due to expense deleverage on lower Joybird delivered sales

Balance Sheet and Cash Flow, Fiscal 2026 Third Quarter:

•Ended the quarter with $306 million in cash(3) and no external debt

•Generated $89 million in cash from operating activities, increasing 57% versus the third quarter of last fiscal year. Year to date, cash flow from operations was $176 million, up 40% from last year's comparable period

•Invested $18 million in capital expenditures, primarily related to La-Z-Boy stores (new stores and remodels), manufacturing-related investments, and spending related to our distribution and home delivery transformation

•Returned approximately $24 million to shareholders, including $10 million in dividends, and resumed more normalized share repurchases of $14 million

Dividend:

On February 17, 2026, the Board of Directors declared a quarterly cash dividend of $0.242 per share on the common stock of the company. The dividend will be paid on March 13, 2026, to shareholders of record on March 3, 2026.

Conference Call:

La-Z-Boy will hold a conference call with the investment community on Wednesday, February 18, 2026, at 8:30 a.m. ET. The toll-free dial-in number is (877) 545-0523; international callers may use (973) 528-0011. Enter Participant Access Code: 662097.

The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at https://lazboy.gcs-web.com/. A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 53583. The webcast replay will be available for one year.

Investor Relations Contact:

Mark Becks, CFA, (734) 457-9538

mark.becks@la-z-boy.com

Media Contact:

Cara Klaer, (734) 598-0652

cara.klaer@la-z-boy.com

About La-Z-Boy:

La-Z-Boy Incorporated (NYSE: LZB) is a leading vertically integrated retailer and manufacturer of high-quality, custom furniture that transforms the home. Founded on American heritage, the iconic La-Z-Boy brand has been synonymous with comfort, quality, and craftsmanship for nearly 100 years. As an end-to-end enterprise, the company manages every aspect of its business—from retail, manufacturing, and design to distribution and after-service care.

4

La-Z-Boy Incorporated brings timeless and modern furniture to life through a retail network of over 370 La-Z-Boy stores, including 226 company-owned locations, and its digital platform at La-Z-Boy.com. Within the Wholesale segment, the company manufactures comfortable, high quality, custom furniture, with approximately 90% of its products produced in North America. Its Joybird® brand is an omnichannel retailer and manufacturer of modern, custom upholstered furniture, operating 15 U.S. stores. With a global team of about 11,000 employees, La-Z-Boy Incorporated was named to TIME’s 2026 list of America’s Most Iconic Companies and Newsweek’s 2025 list of America’s Best Retailers, ranking No. 1 in the furniture category. The company continues to shape the way people live by delivering the transformational power of comfort.

Notes:

(1)Adjusted amounts for the third quarter of Fiscal 2026 exclude:

•supply chain optimization charges, including severance costs related to the closure of the U.K. manufacturing operations totaling $3.4 million pre-tax, or $0.09 per diluted share

•business realignment gain related to the sale of the Casegoods headquarters building and related fixed assets, partially offset by inventory impairment charges on the upholstery portion of the Casegoods business totaling $0.8 million pre-tax, or $0.01 per diluted share

•purchase accounting charges related to acquisitions completed in the current and prior periods totaling $0.8 million pre-tax, or $0.01 per diluted share, all included in operating income

•distribution transformation charges related to the distribution and home delivery project totaling $0.1 million pre-tax, or less than $0.01 per diluted share

Adjusted amounts for the third quarter of Fiscal 2025 exclude:

•purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating income

Please refer to the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” and “Reconciliation of GAAP to Adjusted Financial Measures: Segment Information” for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

(2)This reference to adjusted operating margin for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts.

(3)Cash includes cash and cash equivalents.

Cautionary Note Regarding Forward-Looking Statements:

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, acquisitions, divestitures, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.

The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we

5

currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

Adjusted Financial Measures:

In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, distribution and home delivery transformation charges, business realignment charges or gains, supply chain optimization charges or gains, and purchase accounting charges. The distribution and home delivery transformation charges in Fiscal 2026 include accelerated lease expense, severance costs, and costs associated with exiting former distribution centers. The business realignment charges in Fiscal 2026 include a gain on sale of Casegoods headquarters building and related fixed assets and the impairment of casegoods inventory held for sale. The supply chain optimization charges in Fiscal 2026 include severance costs related to the closure of our U.K. manufacturing operations. The purchase accounting charges include the amortization of intangible assets and incremental expense upon the sale of inventory acquired at fair value. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables.

Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, distribution and home delivery transformation charges, business realignment charges, and supply chain optimization charges are dependent on the timing, size, number and nature of the operations being opened or closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented.

# # #

6

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

						Quarter Ended												Nine Months Ended
(Unaudited, amounts in thousands, except per share data)						1/24/2026						1/25/2025						1/24/2026						1/25/2025
Sales						$	541,588					$	521,777					$	1,556,297					$	1,538,336
Cost of sales						308,077						290,412						882,451						862,980
Gross profit						233,511						231,365						673,846						675,356
Selling, general and administrative expense						203,700						196,197						585,869						569,046
Operating income						29,811						35,168						87,977						106,310
Interest expense						(159)						(102)						(389)						(411)
Interest income						2,698						3,465						9,355						11,619
Other income (expense), net						(599)						97						(1,238)						(2,400)
Income before income taxes						31,751						38,628						95,705						115,118
Income tax expense						9,951						9,683						26,618						29,516
Net income						21,800						28,945						69,087						85,602
Net (income) loss attributable to noncontrolling interests						(150)						(516)						(375)						(977)
Net income attributable to La-Z-Boy Incorporated						$	21,650					$	28,429					$	68,712					$	84,625
Basic weighted average common shares						41,084						41,437						41,113						41,733
Basic net income attributable to La-Z-Boy Incorporated per share						$	0.53					$	0.69					$	1.67					$	2.03
Diluted weighted average common shares						41,485						42,103						41,524						42,380
Diluted net income attributable to La-Z-Boy Incorporated per share						$	0.52					$	0.68					$	1.65					$	2.00

7

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands, except par value)						1/24/2026						4/26/2025
Current assets
Cash and equivalents						$	306,117					$	328,449
Receivables, net of allowance of $4,875 at 1/24/2026 and $5,042 at 4/26/2025						123,800						139,533
Inventories, net						235,051						255,285
Assets held for sale						35,904						—
Other current assets						107,823						82,421
Total current assets						808,695						805,688
Property, plant and equipment, net						340,421						339,212
Goodwill						263,259						205,590
Other intangible assets, net						77,776						51,161
Deferred income taxes – long-term						7,535						7,349
Right of use lease asset						525,107						452,848
Other long-term assets, net						64,170						60,314
Total assets						$	2,086,963					$	1,922,162
Current liabilities
Accounts payable						$	117,943					$	95,984
Lease liabilities, short-term						88,546						80,592
Accrued expenses and other current liabilities						281,014						244,215
Total current liabilities						487,503						420,791
Lease liability, long-term						479,920						410,265
Other long-term liabilities						64,386						59,130
Shareholders' Equity
Preferred shares – 5,000 authorized; none issued						—						—
Common shares, $1.00 par value – 150,000 authorized; 40,924 outstanding at 1/24/2026 and 41,164 outstanding at 4/26/2025						40,924						41,164
Capital in excess of par value						396,810						385,601
Retained earnings						606,864						597,432
Accumulated other comprehensive loss						(2,076)						(3,574)
Total La-Z-Boy Incorporated shareholders' equity						1,042,522						1,020,623
Noncontrolling interests						12,632						11,353
Total equity						1,055,154						1,031,976
Total liabilities and equity						$	2,086,963					$	1,922,162

8

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

						Nine Months Ended
(Unaudited, amounts in thousands)						1/24/2026						1/25/2025
Cash flows from operating activities
Net income						$	69,087					$	85,602
Adjustments to reconcile net income to cash provided by operating activities
(Gain)/loss on disposal and impairment of assets						384						73
(Gain)/loss on sale of investments						(282)						(199)
Provision for doubtful accounts						111						518
Depreciation and amortization						35,624						35,020
Amortization of right-of-use lease assets						62,332						61,521
Equity-based compensation expense						11,745						13,428
Change in deferred taxes						3,143						2,134
Change in receivables						11,470						10,465
Change in inventories						7,939						(21,726)
Change in other assets						(5,280)						(10,217)
Change in payables						25,702						11,897
Change in lease liabilities						(61,826)						(62,607)
Change in other liabilities						15,541						(640)
Net cash provided by operating activities						175,690						125,269
Cash flows from investing activities
Proceeds from disposals of assets						4,822						188
Capital expenditures						(56,737)						(51,538)
Purchases of investments						(822)						(6,783)
Proceeds from sales of investments						1,421						11,715
Acquisitions						(86,423)						(24,772)
Net cash used for investing activities						(137,739)						(71,190)
Cash flows from financing activities
Payments on finance lease liabilities						(702)						(442)
Payments for debt issuance costs						(784)						—
Stock issued for stock and employee benefit plans, net of shares withheld for taxes						(4,370)						10,906
Repurchases of common stock						(27,051)						(64,387)
Dividends paid to shareholders						(28,082)						(25,871)
Dividends paid to minority interest joint venture partners (1)						—						(1,414)
Net cash used for financing activities						(60,989)						(81,208)
Effect of exchange rate changes on cash and equivalents						706						620
Change in cash and cash equivalents						(22,332)						(26,509)
Cash and cash equivalents at beginning of period						328,449						341,098
Cash and cash equivalents at end of period						$	306,117					$	314,589
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables						$	3,297					$	4,010

(1)Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

9

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

						Quarter Ended												Year Ended
(Unaudited, amounts in thousands)						1/24/2026						1/25/2025						1/24/2026						1/25/2025
Sales
Wholesale segment:
Sales to external customers						$	252,378					$	255,028					$	771,279					$	770,031
Intersegment sales						114,214						107,970						317,709						307,764
Wholesale segment sales						366,592						362,998						1,088,988						1,077,795
Retail segment sales						251,934						227,667						681,127						651,601
Corporate and Other:
Sales to external customers						37,276						39,082						103,891						116,704
Intersegment sales						1,801						1,580						5,110						4,753
Corporate and Other sales						39,077						40,662						109,001						121,457
Eliminations						(116,015)						(109,550)						(322,819)						(312,517)
Consolidated sales						$	541,588					$	521,777					$	1,556,297					$	1,538,336
Operating Income (Loss)
Wholesale segment						$	19,114					$	23,565					$	73,345					$	72,093
Retail segment						26,522						24,457						63,463						73,003
Corporate and Other						(15,825)						(12,854)						(48,831)						(38,786)
Consolidated operating income						$	29,811					$	35,168					$	87,977					$	106,310

10

LA-Z-BOY INCORPORATED

RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES

						Quarter Ended												Nine Months Ended
(Amounts in thousands, except per share data)						1/24/2026						1/25/2025						1/24/2026						1/25/2025
GAAP gross profit						$	233,511					$	231,365					$	673,846					$	675,356
Purchase accounting charges (1)						552						—						552						140
Business realignment charges (2)						3,019						—						3,019						—
Distribution transformation (3)						141						—						2,218						—
Supply chain optimization charges (4)						3,420						—						3,420						—
Adjusted gross profit						$	240,643					$	231,365					$	683,055					$	675,496
GAAP SG&A						$	203,700					$	196,197					$	585,869					$	569,046
Purchase accounting charges (5)						(200)						(254)						(599)						(765)
Business realignment gain (6)						3,862						—						3,862						—
Adjusted SG&A						$	207,362					$	195,943					$	589,132					$	568,281
GAAP operating income						$	29,811					$	35,168					$	87,977					$	106,310
Purchase accounting charges						752						254						1,151						905
Business realignment charges						(843)						—						(843)						—
Distribution transformation charges						141						—						2,218						—
Supply chain optimization charges						3,420						—						3,420						—
Adjusted operating income						$	33,281					$	35,422					$	93,923					$	107,215
GAAP income before income taxes						$	31,751					$	38,628					$	95,705					$	115,118
Purchase accounting charges						752						254						1,151						905
Business realignment charges						(843)						—						(843)						—
Distribution transformation charges						141						—						2,218						—
Supply chain optimization charges						3,420						—						3,420						—
Adjusted income before income taxes						$	35,221					$	38,882					$	101,651					$	116,023
GAAP net income attributable to La-Z-Boy Incorporated						$	21,650					$	28,429					$	68,712					$	84,625
Purchase accounting charges						752						254						1,151						905
Tax effect of purchase accounting						(235)						(64)						(320)						(232)
Business realignment charges						(843)						—						(843)						—
Tax effect of business realignment						264						—						234						—
Distribution transformation charges						141						—						2,218						—
Tax effect of distribution transformation						(45)						—						(617)						—
Supply chain optimization charges						3,420						—						3,420						—
Adjusted net income attributable to La-Z-Boy Incorporated						$	25,104					$	28,619					$	73,955					$	85,298
GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")						$	0.52					$	0.68					$	1.65					$	2.00
Purchase accounting charges, net of tax, per share						0.01						—						0.01						0.01
Business realignment charges, net of tax, per share						(0.01)						—						(0.01)						—
Distribution transformation charges, net of tax, per share						—						—						0.04						—
Supply chain optimization charges, net of tax, per share						0.09						—						0.09						—
Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS")						$	0.61					$	0.68					$	1.78					$	2.01

(1)Includes incremental expense upon the sale of inventory acquired at fair value.

(2)Impairment charge to adjust inventory held for sale to its fair value on the upholstery portion of our Casegoods business.

(3)Includes accelerated lease expense, severance costs, and costs associated with exiting former distribution centers.

(4)Includes severance costs related to closure of United Kingdom manufacturing operations.

(5)Includes amortization of intangible assets.

(6)Includes gain on sale of Casegoods headquarters building and related fixed assets.

11

LA-Z-BOY INCORPORATED

RECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES

SEGMENT INFORMATION

						Quarter Ended																								Nine Months Ended
(Amounts in thousands)						1/24/2026						% of sales						1/25/2025						% of sales						1/24/2026						% of sales						1/25/2025						% of sales
GAAP operating income (loss)
Wholesale segment						$	19,114					5.2%						$	23,565					6.5%						$	73,345					6.7%						$	72,093					6.7%
Retail segment						26,522						10.5%						24,457						10.7%						63,463						9.3%						73,003						11.2%
Corporate and Other						(15,825)						N/M						(12,854)						N/M						(48,831)						N/M						(38,786)						N/M
Consolidated GAAP operating income						$	29,811					5.5%						$	35,168					6.7%						$	87,977					5.7%						$	106,310					6.9%
Adjusted items affecting operating income
Wholesale segment						$	2,718											$	55											$	4,795											$	166
Retail segment						552												—												552												140
Corporate and Other						200												199												599												599
Consolidated adjusted items affecting operating income						$	3,470											$	254											$	5,946											$	905
Adjusted operating income (loss)
Wholesale segment						$	21,832					6.0%						$	23,620					6.5%						$	78,140					7.2%						$	72,259					6.7%
Retail segment						27,074						10.7%						24,457						10.7%						64,015						9.4%						73,143						11.2%
Corporate and Other						(15,625)						N/M						(12,655)						N/M						(48,232)						N/M						(38,187)						N/M
Consolidated adjusted operating income						$	33,281					6.1%						$	35,422					6.8%						$	93,923					6.0%						$	107,215					7.0%
N/M - Not Meaningful

12

FAQ

How did La-Z-Boy (LZB) perform in its fiscal 2026 third quarter?

La-Z-Boy posted third quarter sales of $541.6 million, up 4% year over year. Growth came mainly from its Retail and Wholesale segments, while Joybird weakened. However, GAAP diluted EPS fell to $0.52 and adjusted EPS to $0.61, both below last year.

What were La-Z-Boy (LZB)’s margins and earnings trends in Q3 2026?

La-Z-Boy’s GAAP operating margin declined to 5.5% from 6.7% a year ago. GAAP diluted EPS dropped to $0.52 from $0.68, while adjusted diluted EPS was $0.61 versus $0.68, reflecting distribution investments, supply chain optimization costs, and business realignment items.

How strong was La-Z-Boy (LZB)’s cash flow and balance sheet in Q3 2026?

La-Z-Boy generated $89 million in operating cash flow during the quarter, a 57% increase year over year. It ended January 24, 2026 with $306.1 million in cash and no external debt, supporting ongoing capital investments, dividends, and share repurchases.

What strategic actions did La-Z-Boy (LZB) take around its core business?

La-Z-Boy integrated a 15-store acquisition in the U.S. southeast, completed the sale of the Kincaid upholstery business, and signed a letter of intent to sell its American Drew and Kincaid wholesale casegoods brands, sharpening focus on branded, customized upholstered furniture.

What guidance did La-Z-Boy (LZB) provide for its fiscal 2026 fourth quarter?

Management expects fourth quarter sales of $560–$580 million and an adjusted operating margin of 7.5–9.0%. The outlook incorporates a cautious view of the macroeconomic environment and short-term effects from recent adverse weather events on demand and operations.

Did La-Z-Boy (LZB) declare a dividend for shareholders in February 2026?

Yes. La-Z-Boy’s board declared a quarterly cash dividend of $0.242 per share on February 17, 2026. The dividend is payable on March 13, 2026 to shareholders of record as of March 3, 2026, continuing the company’s pattern of returning cash.

How is La-Z-Boy’s (LZB) Retail segment performing compared to Joybird?

In Q3 2026, La-Z-Boy’s Retail segment written and delivered sales each grew 11%, supported by acquired and new stores. By contrast, Joybird written sales declined 13% and delivered sales fell 3% to $36 million, highlighting ongoing volatility in that consumer segment.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 435.3 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.3 KB