La-Z-Boy Incorporated Reports Solid Second Quarter Results; Advances Largest Ever Retail Acquisition And Transformative Strategic Initiatives

Core Insights - La-Z-Boy Incorporated reported second quarter sales of $522 million, a slight increase from the previous year, driven by growth in Retail and Wholesale segments, despite a decline in Joybird sales [3][11] - The company achieved a GAAP operating margin of 6.9% and an adjusted operating margin of 7.1% for the quarter, reflecting challenges in same-store sales and investments in new stores [5][11] - Diluted earnings per share (EPS) were $0.70 on a GAAP basis and $0.71 on an adjusted basis, showing a slight decrease compared to the prior year [11][38] Fiscal 2026 Second Quarter Highlights - Total sales for the quarter were $522 million, up 0.3% from $521 million in the same period last year [7] - GAAP operating income decreased by 7% to $36.2 million, while adjusted operating income fell by 5% to $37.1 million [7][11] - The company generated $50 million in operating cash flow, tripling the amount from the previous year [6][11] Retail Segment Performance - Written sales for the Retail segment increased by 4% year-over-year, while same-store sales decreased by 2%, indicating a sequential improvement over the last two quarters [4][17] - Delivered sales for the Retail segment were $222 million, with an operating margin of 10.7%, down from 12.6% in the prior year [17][36] Wholesale Segment Performance - The Wholesale segment reported sales of $369 million, a 2% increase from the previous year, with an operating margin of 7.9%, up from 6.7% [12][36] - Joybird's written sales increased by 1%, but delivered sales decreased by 10% to $35 million due to lower volume [17][36] Strategic Initiatives - The company opened 15 new company-owned stores in the last 12 months and completed the acquisition of a 15-store network in the southeast U.S., expected to add approximately $80 million in annual Retail sales [5][6] - La-Z-Boy plans to exit non-core wholesale casegoods and upholstery businesses and proposed the closure of its U.K. manufacturing facility to enhance operational efficiency [5][6] Dividend and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.242 per share, marking a 10% increase and the fifth consecutive year of double-digit increases [14]