Financial Data and Key Metrics Changes - Consolidated net sales for the second quarter were $149.9 million, impacted by lower consumer confidence and traffic due to the government shutdown, with retail written orders declining by 17.9% and wholesaler orders down 19.3% year-over-year [7][10] - Consolidated gross margin improved to 60.9%, up 60 basis points from the previous year, attributed to a favorable sales mix and reduced headcount [8][10] - Adjusted operating income was $13.5 million, with an operating margin of 9%, compared to 5.4% in the same quarter of 2019 [8][9] - Adjusted diluted EPS was $0.44, with an effective tax rate of 25.3% [10] Business Line Data and Key Metrics Changes - Retail written orders experienced a decline of 17.9%, while wholesaler orders decreased by 19.3%, reflecting a challenging comparison to the previous year [7][10] - The wholesale backlog at the end of the quarter was $49.8 million, influenced by a lower volume of contract orders [8] Market Data and Key Metrics Changes - Design center traffic declined by 11%, contributing to the overall decrease in demand [7] - Positive written order growth was observed in January, indicating a potential recovery in consumer behavior [7] Company Strategy and Development Direction - The company aims to strengthen its vertically integrated structure, focusing on product development, marketing, and logistics [14][16] - Approximately 75% of furniture is manufactured in North America, providing a competitive advantage and mitigating tariff exposure [12][13] - Increased marketing spend by 25%, primarily in digital media, is expected to yield future benefits despite not fully impacting the second quarter [15][36] Management's Comments on Operating Environment and Future Outlook - Management noted that the government shutdown significantly impacted results, but there are signs of recovery with improved traffic and orders in January [5][20] - The company is optimistic about maintaining strong gross margins due to disciplined expense management and operational improvements [22] Other Important Information - The company has a robust balance sheet with total cash and investments of $179.3 million and no debt [10][11] - A quarterly cash dividend of $10 million was declared, reflecting the company's commitment to returning value to shareholders [11] Q&A Session Summary Question: Retail written orders trends during the quarter - Management indicated that retail written orders averaged a decrease of 18% during the quarter, with a stronger start in October that decelerated due to the government shutdown and tough prior year comparisons [18][19] Question: Improvement in contract side of the business post-government shutdown - Management confirmed that new orders are coming in, albeit at a lower rate than the previous year, with a gradual increase observed [20] Question: Sustainability of gross margins moving forward - Management expressed confidence in maintaining gross margins due to improvements in talent and technology across operations [22] Question: Impact of tariffs and mitigation strategies - Management outlined a three-pronged approach to mitigate tariff impacts, including vendor cost sharing, sourcing diversification, and selective retail price increases [29][30] Question: January trends and consumer behavior - Management attributed improved trends in January to returning consumer confidence and effective engagement by interior designers [33] Question: Future marketing spend and its effectiveness - Management plans to continue focusing on digital marketing while reducing spending in other areas, emphasizing the importance of adapting to changing marketing mediums [36]

Core Viewpoint - A web developer publicly transformed a client's website into a payment reminder after failing to receive the final payment for services rendered, raising discussions about the appropriateness and consequences of such actions [1][4][9]. Group 1: Incident Overview - The developer replaced the entire content of the Joseph Smith Furniture website with a message demanding payment, stating that the service had been completed but the payment was still outstanding [1][4]. - The website, originally showcasing custom furniture, became a public notice for debt collection, attracting attention on social media platforms [2][4]. Group 2: Company Status - Investigations revealed that Joseph Smith Furniture was officially dissolved on December 16, 2025, and another company under the same owner was in liquidation [5]. - Speculations arose regarding whether the company was intentionally avoiding payment or if it was a result of administrative oversight, as the company failed to submit annual reports leading to its forced removal from the registry [8]. Group 3: Community Reactions - Many developers resonated with the situation, sharing similar experiences of delayed payments and unresponsive clients [9]. - Some industry professionals criticized the developer's extreme approach, suggesting that legal avenues should be pursued instead of public shaming [10][12]. Group 4: Risks and Consequences - Experts warned that such public actions could lead to significant legal, security, and reputational risks for both the developer and the client [13]. - The incident highlighted the importance of maintaining control over domain names and access rights, emphasizing that disputes should be resolved privately rather than publicly [13][15].

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Retail Segment - The Retail segment includes nearly 210 company-owned La-Z-Boy Furniture Galleries® stores, part of a broader network of approximately 370 stores nationwide [3] - Joybird®, an omni-channel retailer and manufacturer of modern upholstered furniture, operates 14 stores in the U.S., with one new store opened in fiscal 2026 Q2 [3] Wholesale Segment - In the Wholesale segment, La-Z-Boy manufactures custom furniture for Furniture Galleries® and various retail channels [3] - England Furniture Co. offers custom upholstered furniture, while casegoods brands Kincaid®, American Drew®, and Hammary® provide diverse home furnishings [3] Upcoming Events - La-Z-Boy will participate in a fireside chat at the Goldman Sachs 32nd Annual Global Retailing Conference in New York, scheduled for September 4, 2025, at 1:10 p.m. ET [1]