by Net loss for the quarter nears $2 million, compared with net income of $18.3 million last year
MONROE, Mich. — La-Z-Boy reported a decrease in sales for its first fiscal quarter ended July 25, 2026 that was offset by a strong performance in its retail segment.
The company reported $475.7 million in sales, down 3% from $492.2 million the same period last year. The company noted this was down 1% excluding the impact of its divestiture of its case goods brands American Drew and Kincaid, which was completed in May.
It also reported a net loss of nearly $2 million, or six cents per share compared with net income of $18.3 million or 44 cents per share the same period last year.
Retail segment sales totaled $228.6 million, up 10.3% from $207.2 million last year. Operating income on the retail side totaled $14.6 million, or 6.4% of sales, up 11.3% from $13.1 million last year, which represented 6.3% of sales.
During the quarter, the company said that retail written sales increased 16%, and that retail segment same-store sales increased 3%, attributable to increases in design sales, conversion rates and the average ticket. It also noted that retail delivered sales rose 10%.
The company said that it added four company owned stores, including one new location and three acquired stores. In addition, it noted that it signed an agreement to acquire two additional independent La-Z-Boy Stores.
Wholesale segment sales totaled $322.9 million, down 8.5% from $353 million last year. Operating income on the wholesale side of the business totaled $6.7 million, or 2.1% of sales, compared with $25.2 million, or 7.1% of sales last year.
Melinda D. Whittington, board chair, president and chief executive officer of La-Z-Boy Incorporated, said that during the quarter, the company continued to gain market share and also “drive momentum in our retail segment, where we control the full end-to-end consumer experience.”
“We delivered strong sales growth across both delivered and written sales, and I’m particularly pleased to highlight growth across all three strategic pillars of same-store sales, new store expansion, and acquisitions of independent dealers, all while expanding operating margin,” she said. “Our 3% written same-store sales growth was driven by excellence in execution across marketing, product innovation, and in-store inspiration, despite a continued challenging backdrop for our industry. This momentum demonstrated that our iconic La-Z-Boy brand, disproportionately growing our retail business, and our predominantly U.S. based supply chain continue to be competitive advantages in an uneven consumer environment.”
“In our 100th year, we continue to focus on driving our core vertically integrated North American upholstery business, through day-to-day operational excellence and broader enterprise transformations,” she added. “We completed the divestiture of our wholesale case goods businesses in May, continue to progress our multi-year distribution and home delivery transformation, and have concluded production at one of the two planned plant closures. As we navigate an uneven consumer environment, we are focused on driving our own near-term momentum while continuing to invest for long-term value creation.”
