Q1 2026 La-Z-Boy Inc Earnings Call Transcript
Key Points
- La-Z-Boy Inc (LZB) reported sales growth in both retail and wholesale segments, with retail delivered sales increasing by 2% and wholesale sales growing by 1%.
- The company opened two new company-owned La-Z-Boy furniture galleries and announced a significant 15-store acquisition in the Southeast region of the United States.
- La-Z-Boy Inc (LZB) successfully transitioned to a new Arizona distribution center, marking the first step in a multi-year distribution transformation aimed at improving supply chain agility.
- The company maintained a strong balance sheet with $319 million in cash and no external debt, and updated its revolver to more favorable terms.
- La-Z-Boy Inc (LZB) was recognized by Newsweek as one of America's best retailers in 2025, ranking number one in the furniture category for the first time in its history.
- Consolidated sales for the quarter were $492 million, slightly down from the prior year, affected by a challenging consumer and macroeconomic environment.
- Joybird, a segment of La-Z-Boy Inc (LZB), saw a 20% decrease in delivered sales for the first quarter, consistent with a drop in written sales.
- The company's total adjusted operating margin was pressured, coming in at 4.8% due to slower same-store sales and investments in new store expansions.
- Industry traffic remains depressed, with housing transactions near 30-year lows, impacting store traffic and related same-store sales in the retail segment.
- The company anticipates a modest drag on adjusted operating margins for the first two years of its distribution transformation project due to transition inefficiencies.
Greetings and welcome to the La-Z-Boy Incorporated fiscal 2026 first quarter conference call. (Operator Instructions) And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Mark Becks, Director of Investor Relations and Corporate Development at La-Z-Boy Incorporated. Sir, you may begin.
Thank you, Ali. Good morning, everyone, and thanks for joining us to discuss our fiscal 2026 first quarter. Joining me on today's call are Melinda Whittington, La-Z-Boy Incorporated port chair, President and Chief Executive Officer, and Taylor Loopke, La-Z-Boy SVP and CFO.
Melinda will open and close the call, and Taylor will speak to segment performance and the financials midway through. After our prepared remarks, we will open the line for questions. Slides will accompany this presentation, and you may view them through our webcast link, which will be available for one year. And a telephone replay of the call will be available for one
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