What is the revenue and EPS growth rate for La-Z-Boy year over year?

What were the key takeaways from La-Z-Boy's earnings call?

What is La-Z-Boy's gross profit margin?

What factors drove the changes in La-Z-Boy's revenue and profit?

Did La-Z-Boy beat or miss consensus estimates last quarter?

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What guidance did La-Z-Boy's management provide for the next earnings period?

What does La-Z-Boy do and what are its main business segments?

- **Revenue Growth**: Total delivered sales of $522 million, with Wholesale segment up 2% and Retail segment showing sequential improvement in same-store sales.
- **Strategic Acquisitions**: Completed 15-store acquisition, adding $80 million in annual sales, and exited noncore businesses to focus on core upholstery business.
- **Margin Expansion**: Adjusted operating margin of 7.1%, driven by Wholesale segment efficiency and cost control. Q3 guidance includes 50-75 basis points of margin improvement from supply chain transformation.
- **Cash Flow and Dividends**: Generated $50 million in operating cash flow, triple prior year. Announced 10% dividend increase, marking five consecutive years of growth.
- **Risk Management**: 90% of products manufactured in the U.S., mitigating tariff risks, with nominal pricing adjustments to offset remaining exposure.


**【Management Opening Remarks】**
- Mark Becks provided an overview of the call, emphasizing forward-looking statements and the availability of the earnings release and replay. He highlighted the company's strong financial position and commitment to shareholder returns.

**【CEO Summary Section】**
- **Q2 2026 Results**: Total delivered sales of $522 million, up slightly year-over-year. Retail segment delivered sales increased slightly, with total written sales up 4% and same-store sales improving sequentially. Wholesale segment delivered sales grew 2%, driven by North American La-Z-Boy business.
- **Strategic Initiatives**: Completed acquisition of 15 independent stores, adding $80 million in annual retail sales. Exited noncore businesses (Kincaid casegoods, American Drew casegoods) and announced closure of U.K. manufacturing facility. Consolidated 2 distribution centers as part of a multiyear supply chain transformation.
- **Financial Highlights**: GAAP operating margin of 6.9%, adjusted operating margin of 7.1%. Generated $50 million in operating cash flow, triple the prior year. Announced 10% dividend increase, marking five consecutive years of double-digit growth.
- **Market Positioning**: Named to Forbes' 2026 Best Customer Service list and rolled out new brand identity, generating positive consumer response.

**【CFO Financial Commentary】**
- **Consolidated Results**: GAAP EPS of $0.70, adjusted EPS of $0.71, flat year-over-year. Consolidated adjusted gross margin increased 10 basis points due to lower input costs, partially offset by supply chain friction costs.
- **Segment Performance**: Retail segment margin deleveraged due to lower same-store sales and new store investments. Wholesale segment margin improved 160 basis points, driven by lower warranty expenses and operational efficiency gains.
- **Liquidity and Capital Allocation**: Ended the quarter with $339 million in cash. Generated $50 million in operating cash flow, up from $17 million prior year. Capital expenditures of $20 million for new stores and supply chain investments. Returned $31 million to shareholders via dividends and share repurchases.
- **Q3 Guidance**: Sales expected in the range of $525 million to $545 million (1% to 4% YoY growth). Adjusted operating margin expected to be 5% to 6.5%, reflecting friction costs from portfolio optimization and macroeconomic uncertainty.

**【Q&A Key Highlights】**
- **Geographic Sales**: Canada remains challenging due to trade tariffs, but no significant regional disparities in the U.S.
- **Pricing Strategy**: Implemented nominal pricing adjustments to offset tariffs, with 90% of products manufactured in the U.S. Volume in the North American wholesale business was flat year-over-year.
- **Friction Costs**: Distribution transformation and portfolio optimization initiatives will impact Q3 margins, but long-term benefits include 50-75 basis points of margin improvement.
- **Inventory Management**: Tight working capital management reduced inventory levels, with no impact on in-stock rates.
- **Capital Allocation**: Fiscal 2026 capital spending tilted toward business reinvestment (e.g., distribution transformation, new stores). Dividend increases and share buybacks remain priorities for returning cash to shareholders.


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