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NEW YORK - La-Z-Boy Incorporated (NYSE:LZB) reported fiscal second-quarter earnings that significantly exceeded analyst expectations, sending shares 5.6% higher as investors responded positively to the furniture maker’s performance amid challenging market conditions.
The company reported adjusted earnings per share of $0.71 for the quarter ended October 25, 2025, handily beating the analyst estimate of $0.54. Revenue came in at $522.48 million, slightly above the consensus estimate of $517.63 million and up 0.3% from $521.03 million in the same quarter last year.
"We were pleased to deliver modest sales growth, particularly in our Wholesale segment where we also again delivered margin expansion, continuing to create our own momentum in what remains a choppy landscape," said Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated.
The company’s Retail segment saw written sales increase 4% compared to the year-ago period, while the Wholesale segment delivered a 2% sales increase to $369 million. Adjusted operating margin in the Wholesale segment improved to 8.1% from 6.8% last year, benefiting from lower warranty expenses.
For the fiscal third quarter, La-Z-Boy expects sales to be in the range of $525-545 million, representing growth of 1-4% YoY, compared to the analyst consensus of $534.2 million. The company forecasts adjusted operating margin to be between 5.0-6.5%.
La-Z-Boy also announced several strategic initiatives, including the completion of a 15-store acquisition in the southeast U.S., planned exit from non-core businesses, and the proposed closure of its UK manufacturing facility. The company expects these initiatives to reduce sales by approximately $30 million but increase margins by 75-100 basis points.
The company’s board approved a 10% increase in its quarterly dividend to $0.242 per share, marking the fifth consecutive year of double-digit dividend increases. During the quarter, La-Z-Boy generated $50 million in operating cash flow, more than triple the amount from the same period last year.
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