News
Earnings · Furniture · Margin Expansion · Retail Growth
La-Z-Boy Incorporated reported a strong finish to fiscal 2026, with fourth-quarter adjusted diluted EPS climbing 37% to $1.26 and adjusted operating margin improving 50 basis points to 9.9%, primarily driven by 11% written sales growth in its Retail segment and strategic initiatives.
For the full fiscal year 2026, consolidated sales reached $2.1 billion, a 1% increase, with the Retail segment's written sales up 8% and delivered sales up 6%. The company significantly expanded its retail footprint, adding 15 new stores and acquiring 15 independent La-Z-Boy stores, bringing its company-owned network to 230 locations, representing 61% of its total 378-store network, as stated by CEO Melinda D. Whittington.
While the Wholesale segment's delivered sales were flat for the year, its adjusted operating margin improved. La-Z-Boy generated $204 million in operating cash flow, a 9% increase, and returned $85 million to shareholders through $47 million in share repurchases and $38 million in dividends, marking its fifth consecutive year of a 10% quarterly dividend increase.
Strategic actions included exiting American Drew and Kincaid wholesale casegoods businesses and restructuring the U.K. supply chain. For the first quarter of fiscal 2027, CFO Taylor Luebke projects sales between $490 million and $510 million and an adjusted operating margin of 4.0-5.5%, anticipating continued outperformance in a soft industry.
A new $300 million share repurchase program was also authorized.
