La-Z-Boy 2026 Q2 Earnings Beats Expectations with 31.48% EPS Surprise

La-Z-Boy (LZB) reported fiscal 2026 Q2 earnings on Nov 18, 2025, delivering a 31.48% EPS beat and modest revenue growth. The stock surged 18.89% premarket, driven by strong investor confidence in strategic initiatives and dividend hikes.

La-Z-Boy’s fiscal 2026 Q2 results exceeded expectations, with adjusted EPS of $0.71 surpassing the $0.54 forecast and revenue of $522.48 million slightly outpacing the $517.63 million estimate. The company also raised its quarterly dividend by 10%, marking the fifth consecutive year of double-digit increases, and provided Q3 guidance aligned with the beat.

Revenue

La-Z-Boy’s total revenue rose 0.3% to $522.48 million in 2026 Q2, compared to $521.03 million in the prior year. The Wholesale segment led with $369.44 million in revenue, while the Retail segment contributed $222.04 million. Corporate & Other revenue totaled $38.69 million, and Intersegment Eliminations reduced consolidated revenue by $107.69 million, resulting in a 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 adjusted EPS of $0.71 exceeded forecasts by 31.48%, reflecting effective cost management and strategic realignments.

Post-Earnings Price Action Review

Following the earnings release, La-Z-Boy’s stock surged 18.89% to $35.33 in premarket trading, a stark contrast to its 31% six-month decline. Intraday trading saw a 1.93% gain, though the stock dropped 4.98% over the prior week and 8.11% month-to-date. The positive reaction underscores investor optimism about the company’s strategic focus on core operations and margin expansion.

CEO Commentary

Melinda Whittington highlighted “solid” Q2 performance amid a “choppy” market, emphasizing margin expansion in the wholesale segment and 4% retail sales growth. Strategic priorities include accelerating distribution and home delivery transformation, acquiring 15 Southeast U.S. stores, and exiting non-core businesses like Kincaid and American Drew. The CEO expressed confidence in long-term goals to double market growth and achieve double-digit operating margins.

Guidance

La-Z-Boy expects Q3 2026 sales of $525–$545 million (1–4% YoY growth) with an adjusted operating margin of 5–6.5%. Full-year guidance includes opening 15 new stores, reflecting continued focus on market expansion and operational efficiency.

Additional News

1. Dividend Hike: La-Z-Boy raised its quarterly dividend by 10% to $0.242 per share, marking the fifth consecutive double-digit increase.

2. Store Acquisition: The company acquired 15 stores in the Southeast U.S., aligning with its Century Vision strategy to expand retail presence.

3. Strategic Exit: La-Z-Boy plans to exit non-core wholesale casegoods and upholstery businesses, as well as close its UK manufacturing facility, to streamline operations.