La-Z-Boy (LZB) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 ended with strong execution, record new store openings, and major acquisitions, including a 15-store Southeast U.S. retail acquisition.

• Retail segment delivered sales rose 9% in Q4, driven by acquisitions and new stores, while written sales increased 11%; same-store sales declined 2% but improved sequentially.

• Completed strategic exit of American Drew and Kincaid case goods businesses and finalized U.K. supply chain restructuring.

• Joybird business saw a 2% increase in written sales from new stores, but delivered sales fell 10% due to lower volume and a $20M goodwill impairment was recorded.

• Announced new $300M share repurchase program and achieved fifth consecutive year of 10% dividend increase.

Financial highlights

• Consolidated Q4 sales were flat at $570 million year-over-year; retail growth offset by lower Joybird volume.

• GAAP operating margin improved to 7.2% from 5.2%; adjusted operating margin rose to 9.9% from 9.4%.

• Adjusted diluted EPS was $1.26; GAAP EPS was $0.81, both including a $0.16 benefit from discrete tax items.

• Operating cash flow reached $204 million, up 9% year-over-year; free cash flow for the year was $128 million.

• Fiscal year consolidated sales reached $2.1 billion, up 1% year-over-year.

Outlook and guidance

• Q1 fiscal 2027 sales expected between $490M-$510M, with organic growth up to 4% (excluding acquisitions/divestitures).

• Adjusted operating margin for Q1 projected at 4%-5.5%; Q1 is seasonally lowest for sales/margin.

• Full-year comparability will be affected by the exit from the wholesale case goods business and the timing of retail acquisitions.

• Expect to open ~10 new La-Z-Boy stores and 3-4 new Joybird stores in fiscal 2027.

• Capital expenditures forecasted at $90M-$110M, focused on distribution, home delivery, and store investments.