La-Z-Boy(LZB) - 2026 Q3 - Quarterly Results

Financial Performance - Total sales for the third quarter reached $542 million, a 4% increase compared to the prior year[2] - GAAP operating margin was 5.5%, down from 6.7% in the prior year, while adjusted operating margin was 6.1%, down from 6.8%[8] - Diluted earnings per share (EPS) were $0.52 on a GAAP basis and $0.61 on an adjusted basis, compared to $0.68 in the prior year[8] - Generated $89 million in operating cash flow for the quarter, a 57% increase year-over-year[4] - Consolidated sales for the quarter ended January 24, 2026, were $541,588 thousand, an increase of 3.1% compared to $521,777 thousand for the same quarter in 2025[29] - Operating income for the quarter ended January 24, 2026, was $29,811 thousand, a decrease of 15.5% from $35,168 thousand in the same quarter of the previous year[29] - Net income attributable to La-Z-Boy Incorporated for the nine months ended January 24, 2026, was $68,712 thousand, down from $84,625 thousand in the same period of 2025, representing a decline of 18.8%[29] - The company reported a basic net income per share of $0.53 for the quarter ended January 24, 2026, compared to $0.69 for the same quarter in 2025, a decrease of 23.2%[29] Sales Performance - Retail segment written sales increased by 11%, while same-store sales decreased by 4%[4] - Joybird written sales decreased by 13%, reflecting volatility in this consumer segment[19] - The wholesale segment reported sales of $366,592 thousand for the quarter ended January 24, 2026, slightly up from $362,998 thousand in the same quarter of 2025[35] - Retail segment sales increased to $251,934 thousand for the quarter ended January 24, 2026, compared to $227,667 thousand in the same quarter of 2025, marking an increase of 10.6%[35] Cash and Assets - The company ended the quarter with $306 million in cash and no external debt[19] - Cash and cash equivalents decreased to $306,117 thousand at the end of the period from $328,449 thousand at the beginning, a decline of 6.4%[33] - Total assets increased to $2,086,963 thousand as of January 24, 2026, from $1,922,162 thousand as of April 26, 2025, reflecting a growth of 8.6%[31] Dividends and Future Expectations - A quarterly cash dividend of $0.242 per share was declared, payable on March 13, 2026[15] - The company expects fourth quarter sales to be in the range of $560-580 million and adjusted operating margin between 7.5-9.0%[7] Operating Income and Expenses - GAAP gross profit for the quarter ended January 24, 2026, was $233,511,000, compared to $231,365,000 for the same quarter last year, reflecting a slight increase[36] - Adjusted gross profit for the nine months ended January 24, 2026, was $683,055,000, up from $675,496,000 year-over-year[36] - GAAP operating income decreased to $29,811,000 for the quarter ended January 24, 2026, from $35,168,000 in the prior year, indicating a decline of approximately 15.5%[36] - Adjusted operating income for the nine months ended January 24, 2026, was $93,923,000, down from $107,215,000, a decrease of about 12.3%[39] - The wholesale segment reported an operating income of $19,114,000 for the quarter, representing 5.2% of sales, down from 6.5% in the prior year[39] - The retail segment's operating income was $26,522,000, accounting for 10.5% of sales, slightly down from 10.7% year-over-year[39] - Adjusted operating income for the wholesale segment was $21,832,000, which is 6.0% of sales, compared to 6.5% in the previous year[39] - The corporate and other segment reported a loss of $15,825,000 for the quarter, compared to a loss of $12,854,000 in the same quarter last year, indicating increased costs[39] Acquisitions - The company incurred $86,423 thousand in acquisitions during the nine months ended January 24, 2026, compared to $24,772 thousand in the same period of 2025[33]