La-Z-Boy 2026 Q2 Earnings Beats Expectations Despite 2.8% EPS Decline

La-Z-Boy (LZB) reported fiscal 2026 Q2 earnings on Nov 18, 2025, surpassing Wall Street expectations with revenue growth and a 10% dividend hike. The company’s adjusted EPS of $0.71 exceeded forecasts by $0.17, while revenue rose 0.3% to $522.48 million. Guidance for Q3 reflects cautious optimism, with sales projected at $525–$545 million.

Revenue

La-Z-Boy’s total revenue increased marginally to $522.48 million in Q2 2026, driven by its Wholesale segment, which generated $369.44 million. The Retail segment contributed $222.04 million, offsetting a decline in Joybird sales, while Corporate & Other revenue totaled $38.69 million. Intersegment eliminations reduced consolidated revenue by $107.69 million, resulting in the final reported figure of $522.48 million.

Earnings/Net Income

The company’s EPS declined 2.8% to $0.70, and net income fell 2.9% to $28.99 million. Adjusted EPS of $0.71, however, outperformed estimates, reflecting strategic cost management and margin expansion in core segments. The EPS decline signals operational challenges despite revenue resilience.

Post-Earnings Price Action Review

Following the earnings release, La-Z-Boy’s stock price surged 4.7% in after-hours trading, driven by the top- and bottom-line beats and dividend increase. However, the stock faced mixed short-term performance, dropping 4.98% for the week and 8.11% month-to-date, reflecting broader market volatility and macroeconomic uncertainties. The 10% dividend hike and strategic initiatives, including the 15-store southeast acquisition and UK manufacturing exit, bolstered investor confidence.

CEO Commentary

Melinda D. Whittington highlighted the company’s progress under the Century Vision strategy, emphasizing margin expansion in the Wholesale segment and the strategic acquisition of 15 new stores. She noted the importance of portfolio optimization, including exiting non-core businesses, and expressed confidence in long-term growth despite macroeconomic headwinds.

Guidance

Taylor Luebke, CFO, outlined Q3 2026 sales guidance of $525–$545 million (1–4% YoY growth) and an adjusted operating margin of 5.0–6.5%. The outlook accounts for portfolio optimization costs, supply chain adjustments, and macroeconomic uncertainties.

Additional News

La-Z-Boy announced a 10% dividend increase to $0.242 per share, marking the fifth consecutive double-digit raise. The company also completed the acquisition of 15 stores in the southeastern U.S. as part of its Century Vision strategy, aiming to expand retail presence. Additionally, it plans to exit non-core wholesale businesses and close its UK manufacturing facility, expected to reduce sales by $30 million but improve margins by 75–100 basis points.