La-Z-Boy 2026 Q2 Earnings Beats Expectations with 10% Dividend Hike and 0.3% Revenue Growth

La-Z-Boy (LZB) reported fiscal 2026 Q2 earnings on Nov 18, 2025, with non-GAAP EPS of $0.71 beating estimates by $0.17 and revenue of $522.48 million exceeding forecasts by $4.87 million. The company raised its quarterly dividend by 10%, marking the fifth consecutive double-digit increase, and provided upbeat Q3 guidance of $525–545 million in sales. Shares rose 5.6% in after-hours trading following the results.

Revenue

La-Z-Boy’s total revenue increased 0.3% year-over-year to $522.48 million in 2026 Q2. The Wholesale segment drove growth with $369.44 million in sales, supported by margin expansion and strategic investments like 15 new company-owned stores. The Retail segment contributed $222.04 million, while Corporate & Other revenue added $38.69 million. Intersegment eliminations reduced consolidated revenue by $107.69 million, resulting in a final consolidated total of $522.48 million.

Earnings/Net Income

The company’s EPS declined 2.8% to $0.70 in 2026 Q2, down from $0.72 in 2025 Q2. Net income also fell 2.9% to $28.99 million from $29.85 million. Despite the year-over-year decline, the non-GAAP EPS beat of $0.17 and revenue beat of $4.87 million demonstrated strong performance relative to expectations.

Price Action

The stock price edged up 1.93% during the latest trading day but declined 4.98% for the week and 8.11% month-to-date.

Post-Earnings Price Action Review

The strategy of buying La-Z-Boy shares upon revenue beats and holding for 30 days has historically yielded positive results, driven by the company’s strong performance and market confidence. Recent earnings highlighted a non-GAAP EPS of $0.71, exceeding forecasts by $0.17, and revenue of $522.48 million, surpassing estimates by $4.87 million. These results typically boost investor confidence, leading to favorable stock price reactions. The market rewards such beats with optimism for future earnings, while the 10% dividend increase attracts income-focused investors. Forward guidance of $525–545 million in Q3 sales (1–4% growth) further supports confidence, though risks like macroeconomic headwinds and leadership realignments remain.

CEO Commentary

Melinda D. Whittington, Board Chair, President, and CEO, emphasized modest sales growth in Q2, driven by the Wholesale segment’s margin expansion and strategic investments, including 15 new company-owned stores and distribution transformation. She highlighted the southeast U.S. store acquisition as a key growth driver under the Century Vision strategy. Despite macroeconomic challenges, Whittington noted proactive portfolio optimization, including exiting non-core businesses (Kincaid, American Drew casegoods, and UK manufacturing), and leadership realignment to enhance efficiency.

Guidance

Taylor Luebke, SVP and CFO, provided third-quarter 2026 guidance: sales of $525–545 million (1–4% year-over-year growth) and adjusted operating margin of 5.0–6.5%. The outlook reflects Century Vision initiatives, friction costs from supply chain optimizations, and cautiousness amid macroeconomic uncertainty.

Additional News

La-Z-Boy announced a 15-store acquisition in the southeastern U.S. as part of its Century Vision strategy to expand its retail footprint. The company also increased its quarterly dividend by 10% to $0.242 per share, the fifth consecutive double-digit hike. Additionally, La-Z-Boy plans to exit non-core businesses, including Kincaid, American Drew casegoods, and its UK manufacturing facility, to focus on core operations and improve efficiency.