by Declines in Joybird segment are offset by gains in retail and wholesale side of the business
MONROE, Mich. — La-Z-Boy reported a 1% drop in sales for the quarter ended July 26, 2025 which it attributed to a decline in Joybird sales that was offset by gains in its wholesale and retail segments.
The company said that net sales totaled $492.2 million, compared with $495.5 million the same period last year. Net income was $18.2 million, or 44 cents per share, down 30% from $26.2 million, or 61 cents per share the same period last year.
Operating income was $22 million compared with $32.4 million last year, a 32% decrease. The company said that its operating margin was 4.5% for the quarter on a GAAP basis versus 6.5% last year and 4.8% on an adjusted basis versus 6.6% last year.
It also reported that first quarter total written sales for the retail segment including company-owned La-Z-Boy Furniture Galleries increased 5% compared to last year and that written same-store sales, excluding the impact of newly opened stores and newly acquired stores, were down 4%, “reflecting an increasingly challenged consumer.”
“We were pleased to deliver sales and margin growth in our Wholesale segment for the quarter, primarily driven by our core North America La-Z-Boy wholesale business,” said Melinda D. Whittington, board chair, president and chief executive officer of La-Z-Boy Incorporated. “In addition, our Retail segment grew delivered sales and written sales for the quarter. On top of this, during the quarter we announced the acquisition of a 15-store network in the Southeast region, further highlighting the multiple levers we have to grow our business. Investments in our Century Vision strategy to grow our Retail store footprint and expand brand reach, combined with soft industry demand, had a downward impact on our margin performance this quarter, and we are actively taking steps to adjust our near-term operations and prudently navigate the current environment. Our iconic brand, vertically integrated business model, and robust balance sheet are foundational to our continued strategic growth and position us to disproportionately benefit when industry tailwinds reemerge.”
For the quarter, the company reported $352.9 million in wholesale sales, up from $350.9 million the same period last year. It said this was driven by growth in its core North America La-Z-Boy wholesale business and case goods business and partially offset “by the continued impact of a significant customer transition in our international wholesale business that began in the second quarter of fiscal 2025.”
It reported that GAAP operating margin in the wholesale segment was 7.1% versus 6.8% the same period last year.
Delivered sales in the retail segment totaled $207.2 million, up 2.4% from $202.4 million last year driven by grown from new and acquired stores. However, it said that written same-store sales decreased 4%, “as lower traffic and consumer demand was partially offset by higher average ticket and design sales.”
It added that GAAP operating margin in the retail segment was 6.3% versus 10.2% last year.
It also said that written sales at Joybird decreased 14% while delivered sales decreased 20% to $28 million. In both cases, it said, “store performance was stronger than the online business.”
Other highlights of the report were as follows:
+ The company said it ended the quarter with $319 million in cash and no external debt
+ It reported generating $36 million in cash from operating activities
+ The company said it invested $18 million in capital expenditures, including La-Z-Boy Furniture Galleries new stores and remodels and manufacturing related investments
+ It also reported that it returned about $22 million to shareholders, including $13 million in share repurchases and $9 million in dividends.
