Arhaus (NasdaqGS:ARHS) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsJohn Reed - Founder, Chairman, and CEOJonathan Matuszewski - SVP of Equity ResearchMichael Lee - CFOTara Atwood-Saja - VP of Investor RelationsConference Call ParticipantsPedro Gil - Equity Research AnalystSeth Sigman - Managing Director and Senior Equity Research AnalystSteven Forbes - Senior Managing Director and Equity Research AnalystOperatorGood morning. Welcome to the Arhaus fourth quarter and full year 2025 ...

TORONTO--(BUSINESS WIRE)--Klarna, the global digital bank and flexible payments provider, today announced a new partnership with Article, a leading modern furniture brand offering thoughtfully designed pieces at great prices. The collaboration brings Klarna's flexible payment options to Article's online checkout across the U.S. and Canada giving shoppers more control when purchasing high-value furniture and décor. Home essentials is one of Klarna's fastest-growing categories in North America, a. ...

The US Supreme Court during a rain storm in Washington, DC, US, on Friday, Feb. 20, 2026. Annabelle Gordon | Bloomberg | Getty ImagesThe Supreme Court on Friday ruled that President Donald Trump's country-specific so-called "reciprocal" tariffs are unconstitutional, delivering a win for many consumer companies facing higher import costs.But the ruling doesn't cover all sectors. The Supreme Court reviewed tariffs enacted under the International Emergency Economic Powers Act of 1977, or IEEPA, which the Trump ...

Core Insights - The S&P 500 index has remained close to all-time highs in the current year, but the gains are primarily concentrated in specific sectors, particularly semiconductor stocks [1] Group 1: Market Performance - The S&P 500 has shown resilience, maintaining proximity to historical peak levels [1] - Gains within the index are not widespread but are focused on select stocks, indicating a narrow market rally [1] Group 2: Industry Insights - The semiconductor sector is highlighted as a key driver of the current market performance, suggesting strong demand and growth potential in this area [1] - The article references the author's extensive experience in technology and investment, which may provide valuable insights into industry trends [1]

Core Viewpoint - The furniture industry is facing significant challenges due to high import tariffs and ongoing uncertainty, which have exacerbated existing struggles within the sector [3][4][6]. Industry Challenges - Furniture importers are currently subject to around 25% import duties, which were initially set to increase to 50% but have been postponed to 2027 [4][5]. - The unpredictability of tariff policies has made it difficult for businesses to plan and invest, leading to increased operational challenges [6][24]. - The industry has been under pressure for the past four years, with the impact of tariffs compounding existing difficulties [6][10]. Market Dynamics - The Covid-19 pandemic initially boosted furniture sales as consumers invested in home improvements, but inflation and rising interest rates have since led to a decline in the sector [8][9]. - American Signature Furniture declared bankruptcy, citing a 27% decline in sales and a significant increase in net operating losses from $18 million to $70 million [10][11]. - Smaller furniture businesses are particularly vulnerable to tariff impacts due to limited resources compared to larger competitors [12][13]. Competitive Landscape - Larger furniture companies, such as RH, Williams-Sonoma, and Wayfair, have managed to grow sales and margins despite facing higher import costs [16][17][18]. - Ikea reported stable revenue and attributed increased operating expenses to acquisitions rather than tariffs [16]. - The market dynamics have created opportunities for larger firms to capture market share from smaller businesses struggling with tariff-related costs [15]. Future Uncertainty - The U.S. Supreme Court is reviewing the legality of the tariffs, which could lead to further changes in the industry landscape depending on the ruling [21][22]. - The outcome of the court's decision may affect how tariffs are implemented and could lead to either refunds or increased tariffs [22][23].

Core Insights - La-Z-Boy reported strong fiscal 2026 third-quarter results, with total delivered sales of $542 million, up 4% year over year, and adjusted operating income of $33 million, reflecting management's focus on retail expansion and strategic initiatives aimed at enhancing long-term profitability [3][4][7] Retail Segment Performance - Retail delivered sales increased by 11% to $252 million, driven by new and acquired stores, with the retail adjusted operating margin remaining flat at 10.7% compared to the previous year [1][6] - The company completed a record 15-store acquisition, adding approximately $80 million in annualized sales, and expanded its store network to 374 locations, with company-owned stores at an all-time high of 60% [6][8] Profitability and Margins - Adjusted gross margin increased by 10 basis points year over year, primarily due to a shift towards the retail segment, although this was partially offset by investments related to the distribution and home delivery transformation project [2] - Adjusted SG&A as a percentage of sales rose by 80 basis points, driven by the same mix shift and fixed-cost deleverage from lower delivered same-store sales [2] Wholesale Segment Performance - In the wholesale segment, delivered sales rose by 1% to $367 million, but adjusted operating margin decreased to 6% from 6.5% a year earlier, primarily due to investments in transformation projects and unfavorable foreign exchange rates [10] - The company achieved its seventh consecutive quarter of sales growth in its core North American wholesale business, emphasizing its vertically integrated manufacturing model [11] Strategic Initiatives - Management is executing portfolio and supply-chain changes, including the completion of a Western distribution hub and the initiation of an Eastern hub, expected to improve wholesale margins by 50-75 basis points [5][12] - The company plans to close its U.K. manufacturing facility by the end of fiscal 2026, which is expected to reduce annualized sales by about $30 million but improve adjusted operating margin by 75-100 basis points [14][20] Cash Flow and Capital Allocation - La-Z-Boy generated $89 million in operating cash flow during the quarter, a 57% increase year over year, and ended the quarter with $306 million in cash and no externally funded debt [16] - The company returned $55 million to shareholders through dividends and share repurchases, with $28 million in dividends and $27 million in repurchases [17] Future Outlook - For the fiscal fourth quarter, La-Z-Boy guided sales of $560 million to $580 million and an adjusted operating margin of 7.5% to 9%, reflecting a cautious view on the macroeconomic backdrop [18] - The company expects to open five new company-owned stores in the fourth quarter, bringing total openings to 16 for the full fiscal year [18]

Core Insights - La-Z-Boy's stock fell 7.3% despite beating sales and earnings expectations for fiscal Q3 2026, with actual earnings of $0.61 per share on sales of $541.6 million compared to expectations of $0.59 per share on $535.4 million [1][2] Financial Performance - Sales increased by 4% year over year in Q3, with retail sales up 11% while wholesale sales only grew by 1% [2] - Non-GAAP profits declined by 10% year over year, and GAAP profits fell by 24%, with the operating profit margin contracting by 120 basis points to 5.5% [3] Cash Flow and Future Outlook - La-Z-Boy generated $119 million in free cash flow in the first nine months of fiscal 2026, representing a 61% year-over-year increase [4] - The company forecasts sequential revenue growth to at least $560 million in Q4 and expects improvements in non-GAAP operating margins [4] - Projected free cash flow for the year is at least $158 million, resulting in a price-to-free cash flow ratio of less than 10, alongside a 2.6% dividend yield, indicating the stock is considered undervalued [5]

Financial Data and Key Metrics Changes - Total delivered sales for the third quarter reached $542 million, an increase of 4% compared to the prior year [4][16] - GAAP operating margin was 5.5%, while adjusted operating margin was 6.1%, aligning with the high end of guidance [5][16] - Operating cash flow for the quarter was $89 million, up 57% from the previous year [5][20] - Diluted earnings per share were $0.52 on a GAAP basis and $0.61 on an adjusted basis [16][17] Business Line Data and Key Metrics Changes - Retail segment delivered sales increased by 11% to $252 million, driven by new and acquired stores [17] - Wholesale segment delivered sales grew by 1% to $367 million, supported by modest growth across most businesses [17] - Joybird's total delivered sales decreased by 3% to $36 million, reflecting a challenging consumer environment [18] Market Data and Key Metrics Changes - Same-store sales for the retail segment decreased by 4%, with trends improving in January before being impacted by adverse weather [5][6] - The company opened 4 new company-owned stores during the quarter, totaling 16 new stores in the last 12 months [4][10] - The total network of stores expanded to 374, with 60% being company-owned, the highest proportion in the company's history [10] Company Strategy and Development Direction - The company is focused on its Century Vision strategy, which includes expanding its retail footprint and enhancing brand reach through acquisitions [9][10] - A planned closure of the U.K. manufacturing facility is underway, with production expected to cease by the end of the fiscal year [14][15] - The company aims to leverage its vertically integrated model, producing approximately 90% of upholstered products in the U.S. [11][26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging consumer environment but expressed confidence in the brand's resilience and ability to adapt [26] - The company expects fiscal fourth quarter sales to range between $560 million and $580 million, with adjusted operating margins between 7.5% and 9% [23][24] - Management remains cautious about the macroeconomic backdrop but is optimistic about future growth opportunities [26] Other Important Information - The company completed the sale of its Kincaid Upholstery business and signed a letter of intent for the sale of non-core wholesale casegoods businesses [8][15] - The distribution and home delivery transformation project is expected to improve wholesale margins by 50-75 basis points upon completion [11][12] Q&A Session Summary Question: Can you clarify the margin improvement base year? - Management indicated that the 75-100 basis points margin improvement is based on the trailing twelve months of enterprise results as of quarter two [32] Question: What are the implications of the distribution transformation for future operations? - Management emphasized that the transformation will enhance consumer experience and deliver bottom-line savings, while also improving operational efficiency [35][36] Question: How does the weather impact the fourth quarter guidance? - Management noted that while the consumer environment remains stable, recent weather events have created timing pressures that may affect Q4 performance [54][56] Question: What are the growth opportunities in the wholesale segment? - Management highlighted strategic partnerships as key to expanding brand reach, with a focus on quality partnerships rather than quantity [58][59] Question: What is the outlook for Joybird? - Management acknowledged the volatility in the Joybird segment but remains committed to right-sizing the business for profitable growth [60]

Financial Data and Key Metrics Changes - Total delivered sales for the third quarter reached $542 million, an increase of 4% compared to the prior year [4] - GAAP operating margin was 5.5%, while adjusted operating margin was 6.1%, nearing the high end of guidance [5] - Operating cash flow for the quarter was $89 million, up 57% from the previous year [5][20] - Diluted earnings per share were $0.52 on a GAAP basis and $0.61 on an adjusted basis [16] Business Line Data and Key Metrics Changes - Retail segment delivered sales increased by 11% to $252 million, driven by new and acquired stores [17] - Wholesale segment delivered sales grew by 1% to $367 million, supported by modest growth across most businesses [17] - Joybird's total written sales decreased by 13% compared to the previous year, reflecting volatility in the consumer segment [7][18] Market Data and Key Metrics Changes - Same-store sales for the retail segment decreased by 4%, with traffic challenges partially offset by strong in-store execution [5] - Same-store sales trends were strongest in January before adverse weather impacted traffic [6] Company Strategy and Development Direction - The company is focused on expanding its retail footprint, having opened 16 new company-owned stores in the last 12 months [9] - Strategic initiatives include the integration of a 15-store acquisition and the planned closure of the U.K. manufacturing facility [8][14] - The company aims to grow its store network to over 400 locations and continues to pursue independent store acquisitions [10] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a challenging consumer environment but remains optimistic about the brand's strength and future growth potential [26] - The company expects fiscal fourth quarter sales to be between $560 million and $580 million, with adjusted operating margins of 7.5% to 9% [23] - Management believes that the distribution and home delivery transformation project will yield significant long-term benefits [12][24] Other Important Information - The company completed the sale of its Kincaid Upholstery business and signed a letter of intent for the sale of non-core wholesale casegoods businesses [8][15] - The effective tax rate for the third quarter was 31.3%, up from 25.1% in the previous year, primarily due to nondeductible operating losses [19] Q&A Session Summary Question: Can you clarify the margin improvement referenced? - Management indicated that the 75-100 basis points improvement is based on the trailing twelve months of enterprise results as of quarter two [32] Question: What are the implications of the distribution transformation project? - Management expects the project to deliver bottom-line savings and enhance consumer experience, with broader delivery ranges [36] Question: How do weather impacts affect the fourth quarter guidance? - Management noted that while weather has impacted consumer engagement, they do not expect significant changes in the overall consumer environment [54] Question: What are the growth opportunities for Joybird? - Management acknowledged the volatility in the Joybird segment but remains committed to right-sizing the business for profitable growth [60] Question: How does the new U.K. setup affect future growth? - Management expressed optimism about the new partnership with DFS, which is expected to accelerate growth despite current macroeconomic challenges [68]

La-Z-Boy (NYSE:LZB) Q3 2026 Earnings call February 18, 2026 08:30 AM ET Speaker4Please note this conference is being recorded. I will now turn the conference over to your host, Mark Becks, Director of Investor Relations and Corporate Development at La-Z-Boy. Mark, the floor is yours.Speaker2Thank you, Jenny. Good morning, everyone, and thanks for joining us to discuss our fiscal 2026 third quarter. Joining me on today's call are Melinda Whittington, La-Z-Boy Incorporated's Board Chair, President, and Chief ...