La-Z-Boy 2026 Q1 Earnings Earnings Dip 31.7% Amid Revenue Decline

La-Z-Boy (LZB) reported its fiscal 2026 Q1 earnings on August 19, 2025, with a notable decline in both revenue and net income. The results fell short of expectations, reflecting a challenging consumer environment and margin pressures from strategic investments. The company maintained its cautious outlook and provided second-quarter sales guidance in line with its ongoing growth strategy and operational focus.

Revenue
La-Z-Boy’s total revenue declined by 0.7% in Q1 2026, reaching $492.23 million compared to $495.53 million in the same period the previous year. The Retail segment showed resilience with written sales up 5%, while the Wholesale segment recorded a more modest 1% increase in delivered sales. Despite these gains, the overall revenue contraction signals a difficult market backdrop affecting the company’s top-line performance.

Earnings/Net Income
Earnings per share (EPS) dropped 29.0% year-over-year to $0.44, and net income fell to $18.30 million in Q1 2026, down from $26.80 million in Q1 2025, representing a 31.7% decline. The earnings contraction highlights the impact of soft demand and ongoing investment costs, indicating a challenging operating environment.

Price Action
The stock price of La-Z-Boy has edged up 0.82% during the latest trading day, has edged up 2.68% during the most recent full trading week, and has climbed 3.33% month-to-date.

Post-Earnings Price Action Review
The strategy of buying La-Z-Boy (LZB) shares after its revenue drop quarter-over-quarter on the financial report released date and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 36.23% return, while the benchmark returned 53.10%, resulting in an excess return of -16.88%. The strategy's CAGR was 11.26%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.33, indicating a low risk profile but conservative returns.

CEO Commentary
Melinda D. Whittington, Board Chair, President, and CEO, noted strong growth in the Retail and Wholesale segments, with Retail written sales up 5% and Wholesale delivered sales up 1%. She emphasized the acquisition of a 15-store network in the Southeast, progress on the Century Vision strategy, and the recent brand identity launch. Whittington acknowledged margin pressures from strategic investments and soft industry demand but expressed confidence in the company’s long-term fundamentals, strong brand, and balance sheet. The tone reflects cautious optimism, with a pragmatic approach to navigating current challenges while pursuing strategic growth.

Guidance
Taylor Luebke, SVP and CFO, provided second-quarter sales guidance of $510-530 million and an adjusted operating margin of 4.5-6.0%. The outlook reflects prudent investment in strategic growth initiatives while managing the ongoing challenging consumer and macroeconomic conditions. The guidance excludes Joybird and focuses on the core business, with no forward guidance provided for GAAP metrics.

Additional News
On August 19, 2025, AFG Aviation announced the leasing of two aircraft to Cally Air, marking a strategic move to expand the latter's operations. In a separate development, TD Africa secured ISO certifications, reinforcing its commitment to international quality standards. Meanwhile, TRACE provided raincoats to its operatives, enhancing operational preparedness. These announcements reflect ongoing business activity and strategic growth initiatives within the industry.