La‑Z‑Boy Incorporated reported fiscal 2026 second‑quarter revenue of $522.48 million, a 0.3 % year‑over‑year increase from $521.03 million in the same period a year earlier. Adjusted earnings per share reached $0.71, surpassing the consensus estimate of $0.54 by $0.17, a 31 % beat. GAAP diluted earnings per share were $0.70, matching the prior‑year GAAP EPS of $0.70 and exceeding the prior‑year adjusted EPS of $0.70 by $0.01.
Operating margins reflected a modest compression relative to the prior year. GAAP operating margin fell to 6.9 % from 7.3 %, while adjusted margin declined to 7.1 % from 7.5 %. The compression is largely attributable to higher input costs and investments in retail expansion, offset by a 40‑basis‑point expansion in the wholesale segment’s margin driven by lower warranty expenses.
Segment performance showed mixed dynamics. Retail written sales grew 4 % year‑over‑year, but same‑store written sales declined 2 %, indicating pressure in the direct‑to‑consumer channel. Wholesale sales increased 2 %, supporting the margin expansion in that segment. Joybird sales fell 10 %, reflecting a strategic divestiture of that brand.
CEO Melinda D. Whittington highlighted the company’s focus on margin growth in wholesale, noting that “we were pleased to deliver modest sales growth, particularly in our Wholesale segment where we again delivered margin expansion, continuing to create our own momentum in what remains a choppy landscape.” CFO Taylor Luebke explained that the third‑quarter guidance reflects “advancement of our Century Vision initiatives, friction costs related to portfolio and supply chain optimizations, and a measured view on the uncertain macroeconomic backdrop.”
Management guided fiscal 2026 third‑quarter revenue to $525 million–$545 million and an adjusted operating margin of 5.0 %–6.5 %. The lower margin range compared to the current quarter signals recognition of upcoming friction costs from portfolio optimization and supply‑chain adjustments, while the revenue range indicates confidence in maintaining modest growth amid macro uncertainty.
Investors responded positively to the results, citing the strong EPS beat, margin expansion in wholesale, and the company’s strategic initiatives to streamline operations and strengthen its balance sheet. The dividend increase and robust cash position further reinforced confidence in La‑Z‑Boy’s financial health.
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