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Apr 26

La-Z-Boy Q4 2025 Earnings Report

La-Z-Boy delivered revenue and adjusted EPS growth, driven by strength in the Retail and Wholesale segments, despite macroeconomic challenges.

Key Takeaways

La-Z-Boy posted solid Q4 results with sales up 3% and strong adjusted margins, benefiting from retail expansion and core wholesale growth. Net income declined due to goodwill impairment in the UK business.

Consolidated sales increased 3% YoY to $571M, exceeding guidance.

Adjusted operating margin held steady at 9.4% despite headwinds.

Retail segment delivered sales rose 8% with expanded store base.

Reported GAAP net income declined due to UK goodwill impairment.

Total Revenue
$571M
Previous year: $554M
+3.1%
EPS
$0.92
Previous year: $0.95
-3.2%
Same-store sales decline
-5%
Q4 operating cash flow
$62M
Previous year: $53M
+17.0%
Gross Profit
$251M
Previous year: $240M
+4.6%
Cash and Equivalents
$328M
Previous year: $341M
-3.7%
Free Cash Flow
$113M
Previous year: $105M
+8.0%

La-Z-Boy

La-Z-Boy

La-Z-Boy Revenue by Segment

Forward Guidance

La-Z-Boy expects modest revenue growth in Q1 FY26 amidst industry volatility, planning prudently with a focus on Retail and core wholesale segments.

Positive Outlook

  • Expected Q1 sales range: $490M–$510M
  • Adjusted operating margin guidance: 5.5%–7.0%
  • Growth to be led by company-owned Retail segment
  • Strong core North America wholesale momentum
  • Operational investments to support long-term gains

Challenges Ahead

  • Seasonally low Q1 sales expected
  • Tariff expenses remain a cost pressure
  • UK and Joybird businesses causing transitory margin drag
  • Volatile consumer sentiment due to macroeconomic conditions
  • Annual plant shutdown to impact quarterly performance

Revenue & Expenses

Visualization of income flow from segment revenue to net income