La-Z-Boy 2026 Q2 Earnings Revenue Beats Expectations, Net Income Declines 2.9%

La-Z-Boy (LZB) reported fiscal 2026 Q2 earnings on Nov 18, 2025, with modest revenue growth and a decline in earnings. The stock’s post-earnings performance and strategic moves drew investor attention.

La-Z-Boy’s fiscal 2026 Q2 results showed a 0.3% revenue increase to $522.48 million, surpassing expectations, while EPS declined 2.8% to $0.70. The company maintained its guidance for Q3, with sales projected between $525-545 million, aligning with market forecasts.

Revenue

Total revenue rose 0.3% to $522.48 million, driven by the Wholesale segment’s $369.44 million. The Retail segment contributed $222.04 million, while Corporate & Other added $38.69 million. Intersegment Eliminations adjusted the consolidated total to $522.48 million.

Earnings/Net Income

Despite a 0.3% revenue increase, EPS fell 2.8% to $0.70, and net income declined 2.9% to $28.99 million, indicating margin pressures.

Post-Earnings Price Action Review

The strategy of buying La-Z-Boy shares when revenue beats and holding for 30 days has shown favorable performance. Recent results, with a $522.48 million revenue beat, spurred a 5.6% stock gain post-earnings, reflecting market optimism. A 10% dividend increase and upbeat Q3 guidance further bolstered investor confidence. Strategic moves, including the acquisition of 15 stores and exit from non-core businesses, are expected to drive long-term margin expansion and share price resilience. Analysts remain cautiously optimistic, rating the stock as a “Hold” but noting growth potential amid macroeconomic challenges.

CEO Commentary

Melinda D. Whittington highlighted the Wholesale segment’s margin expansion and strategic investments in new stores and distribution. The 15-store southeast acquisition under Century Vision is a key growth driver, while exits from non-core businesses and the UK facility closure aim to strengthen operational efficiency.

Guidance

Taylor Luebke outlined Q3 2026 guidance: sales of $525-545 million (1-4% Y/Y growth) and adjusted operating margin of 5.0-6.5%. The outlook accounts for Century Vision initiatives, friction costs, and macroeconomic caution.

Additional News

La-Z-Boy acquired 15 stores in the southeast U.S., exiting non-core businesses like Kincaid and American Drew. The company raised its quarterly dividend by 10%, the fifth consecutive increase, and closed its UK manufacturing facility as part of cost optimization. These moves aim to enhance margins and operational focus.

Additional News

La-Z-Boy’s recent 10% dividend hike and strategic acquisitions underscore its commitment to shareholder returns and market expansion. The company also announced the closure of its UK facility, signaling a focus on core North American operations. These actions align with its Century Vision strategy to strengthen retail footprints and brand reach.