La-Z-Boy (LZB) Q4 2025 earnings summary

Executive summary

• Achieved 3% year-over-year sales growth in Q4 ($571M) and full year ($2.1B), with Retail up 5%, Wholesale up 2%, and Joybird up 5%, driven by new stores, acquisitions, and wholesale momentum.

• Company-owned store base expanded to 203, now 55% of the network, with 11 new stores opened and 7 acquired, supporting the Century Vision strategy.

• Maintained a robust balance sheet with $328M in cash and no external debt.

• Operating cash flow for the year was $187M (+18% YoY), with $113M returned to shareholders via buybacks and dividends, including a 10% dividend increase.

• Continued investment in supply chain agility and retail footprint expansion.

Financial highlights

• Q4 consolidated sales up 3% to $571M; Retail segment up 8%, Wholesale up 2%.

• Q4 adjusted operating income $54M (+3% YoY); adjusted operating margin 9.4% (flat YoY); GAAP margin 5.2% (down from 9.1%).

• Q4 adjusted diluted EPS $0.92 (down 3% YoY); GAAP EPS $0.36 (down 60%), both impacted by $0.10 in unfavorable foreign tax items.

• FY25 sales $2.1B (+3% YoY); adjusted operating income $161M (+1% YoY); adjusted operating margin 7.6% (down 20bps YoY); GAAP margin 6.4% (down 100bps).

• FY25 adjusted diluted EPS $2.92 (down 2% YoY); GAAP EPS $2.35 (down 17%).

Outlook and guidance

• FY26 targets: sales growth double industry rate, long-term double-digit operating margins.

• Q1 FY26 sales expected $490M-$510M; adjusted operating margin 5.5%-7%, reflecting transitory pressures from UK and Joybird.

• Plan to open ~15 new Furniture Galleries (majority company-owned) and 3-4 new Joybird stores in FY26.

• FY26 capex expected $90M-$100M, focused on new stores, remodels, and distribution redesign.

• Effective tax rate expected 26-27% for FY26.