La-Z-Boy Incorporated Reports First Quarter Results; Retail Momentum With Positive Written Same-Store Sales

La-Z-Boy Incorporated (NYSE: LZB) reported fiscal 2027 first-quarter sales of $475.689 million, down 3% from $492.229 million, or down 1% excluding the wholesale Casegoods divestiture completed in May. GAAP operating margin fell to (0.4)% from 4.5%, while adjusted operating margin declined to 3.9% from 4.8%. GAAP diluted EPS was $(0.06), versus $0.44, and adjusted diluted EPS was $0.43, versus $0.47. Retail was the key bright spot. Written sales increased 16%, written same-store sales rose 3%—a 500-basis-point sequential improvement—with gains in design sales, conversion and average ticket. Delivered sales increased 10% to $229 million. GAAP and adjusted operating margins improved to 6.4% and 6.5%, respectively, from 6.3%. La-Z-Boy added four company-owned stores, including one new and three acquired, and agreed to acquire two additional independent La-Z-Boy stores. Wholesale sales declined 9% to $323 million, or 5% excluding Casegoods, as uneven order patterns reduced delivered volume. GAAP operating margin fell to 2.1% from 7.1%, while adjusted margin declined to 6.8% from 7.5%, despite favorable tariff effects, including IEEPA refunds and pricing actions net of tariff costs. Backlog was solid entering the second quarter. Joybird written sales decreased 17%, while delivered sales fell 4% to $27 million amid volatile consumer demand. Management forecast second-quarter sales of $500 million to $520 million, reflecting enterprise growth of negative 1% to positive 2% excluding Casegoods, and adjusted operating margin of 4.0% to 5.5%. Investments in stores, advertising, pricing, digital transformation, plant optimization, and distribution and home delivery will create near-term friction. The company concluded production at one of two planned plant closures and returned approximately $35 million to shareholders, including $25 million in repurchases and $10 million in dividends, up 62%. It ended the quarter with $267 million in cash and no external debt, generated $16 million in operating cash flow, and invested $39 million, including $23 million in capital expenditures and $16 million in acquisitions. The $0.242 quarterly dividend is payable September 15, 2026, to shareholders of record September 3. Its primarily U.S.-based supply chain limits tariff exposure, although evolving Section 301/338 tariffs remain a risk. La-Z-Boy operates approximately 380 stores, including 234 company-owned locations; Joybird operates 16 U.S. stores. More than 90% of Wholesale products are made in North America. Adjusted results exclude plant-exit, retirement-plan, Casegoods, acquisition and transformation charges.