La-Z-Boy Incorporated Q3 FY2026 earnings call

• Retail segment had written and delivered sales up 11% vs prior year, opened 4 new company-owned stores during the quarter. • Wholesale segment had delivered sales up 1% vs prior year and made progress on distribution and home delivery transformation project. • Successfully integrated 15-store acquisition in Southeast region. • Announced planned closure of U.K. manufacturing facility. • Completed sale of Kincaid upholstery business and signed letter of intent for sale of noncore wholesale casegoods businesses. • Opened 4 new company-owned stores in the quarter, with 16 new stores in last 12 months and 4 closed. • Wholesale segment had seventh consecutive quarter of sales growth in core North American La-Z-Boy wholesale business. • Making progress on distribution and home delivery transformation project with completion of Western U.S. phase and breaking ground on Dayton, Tennessee hub. • New brand identity received positive media attention.

Retail segment: Delivered sales increased 11% to $252 million in the third quarter. Retail adjusted operating margin was flat at 10.7% versus prior year. Wholesale segment: Delivered sales grew 1% to $367 million. Adjusted operating margin for Wholesale was 6% in the third quarter versus 6.5% last year. Joybird: Delivered sales were $36 million, down 3% with operating loss increasing versus prior year.

• Fiscal fourth quarter sales expected to be in the range of $560 million to $580 million. • Adjusted operating margin expected to be in the range of 7.5% to 9%. • Expect to open 5 new company-owned stores in fourth quarter. • Capital expenditures expected to be in the range of $80 million to $90 million. • Strategic initiatives expected to have annualized impact of approximately a $30 million net sales decrease and adjusted operating margin improvement of 75 to 100 basis points to the entire enterprise. • Tax rate for full year expected to be in the range of 27% to 29%.

• Ongoing challenging consumer environment. • Weather events could impact timing of deliveries. • Macroeconomic environment challenges affecting certain segments like Joybird.

Q: Dive in on strategic actions and margin improvement base year.

A: 75 to 100 basis points based on trailing 12 months of enterprise results at quarter 2 point.

Q: Offset on savings and investment.

A: Intent is savings flow through all else being equal.

Q: Agile business post changes and navigating future.

A: Supply chain transformation for enhanced consumer and employee experience, broader retail ownership and omnichannel for better consumer touch.

Q: Cadence of trends in third quarter vs second quarter.

A: Consumer choppy, January strongest in quarter until weather impacted, President's Day trends positive.

Q: 4Q guidance puts and takes.

A: Near-term headwinds of traffic challenge and deleveraging impacts, but long-term margin improvements from strategic initiatives.

Q: Separate 4Q guidance weather vs macro.

A: Weather impact at end of Q3 and into Q4 causes timing pressure, but no loss of furniture sales just timing.

Q: Wholesale brand reach expansion.

A: Strategic partnerships like Slumberland, Rooms To Go, and others, continuing to expand with good partners.

Q: Joybird long-term thoughts.

A: Joybird is tough with volatile consumer, continuing to rightsize to grow profitably.

Q: U.K. setup and future.

A: Pivoted from FCS to DFS, continuing to grow business, rightsized manufacturing and cost structure, anticipate margins back to ranges.

Q: New setup and international growth.

A: No change in international optionality, core North America has more opportunity currently.