La-Z-Boy Incorporated (LZB) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: 2.27%
• Average Volume (3M): 598.68K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.60
• Revenue Growth: 1.78%
• EPS Growth: -25.36%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.71
• Shares Outstanding: 41,248,970
• 10 Day Avg. Volume: 464,423
• 30 Day Avg. Volume: 598,683
• PEG Ratio: -1.00
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 14.54
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 5.95
• 1Y Price Target: $39.00
• Price Target Upside: -2.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $2.13B

• Rating: 77 Outperform
• Price Target: $44.00 ▲(10.50% Upside)

La-Z-Boy's overall stock score reflects strong financial performance and effective strategic initiatives, supported by positive technical indicators. While valuation is fair, the company's proactive approach to growth and operational efficiency, alongside consistent dividend increases, enhances its investment appeal.

Positive Factors

Strategic Expansion

The acquisition of 15 stores in a key region enhances market presence and is expected to add $80 million in annual retail sales, supporting long-term growth.

Cash Flow Management

Strong cash flow generation indicates effective management and provides the company with the flexibility to invest in growth opportunities and manage debt.

Leadership Realignment

The leadership restructuring aims to enhance focus on core businesses and improve omni-channel capabilities, positioning the company for sustained growth.

Negative Factors

Profit Margin Pressure

Declining profit margins suggest potential challenges in maintaining cost efficiency, which could impact long-term profitability if not addressed.

Joybird Sales Decline

The decline in Joybird sales reflects challenges in specific segments, which may hinder overall revenue growth if the trend continues.

Mixed Consumer Trends

Decreasing same-store sales indicate potential consumer demand challenges, which could affect future sales performance if not reversed.

La-Z-Boy Incorporated Business Overview & Revenue Model

Company Description

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, and entertainment centers. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The company's Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 161 company-owned La-Z-Boy Furniture Galleries stores. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.

How the Company Makes Money

La-Z-Boy generates revenue primarily through the sale of its furniture products, which are sold through its retail stores, online platforms, and third-party retailers. The company has multiple revenue streams including direct sales from company-owned stores, franchise fees from franchised locations, and wholesale distribution to other retailers. Additionally, La-Z-Boy offers customization options for its products, allowing customers to select fabrics, colors, and features, which can command higher price points. Key partnerships with retailers and distributors expand the company's market reach, while collaborations with designers and participation in trade shows enhance brand visibility and drive sales. The company's focus on quality and customer satisfaction also contributes to repeat business and brand loyalty.

La-Z-Boy Incorporated Financial Statement Overview

Summary

La-Z-Boy Incorporated exhibits solid financial health with stable revenue growth and effective cash flow management. While there is a slight decline in profitability margins, the company maintains a balanced capital structure and strong cash flow metrics, positioning it well for future growth.

Income Statement

La-Z-Boy Incorporated shows a stable revenue growth rate of 6.9% in the TTM, with a consistent gross profit margin around 43%. However, the net profit margin has slightly decreased to 4.3% from 4.7% in the previous annual report. The EBIT and EBITDA margins have also seen a decline, indicating potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.48, suggesting a balanced approach to leveraging. Return on equity has decreased to 9% in the TTM from 9.75% annually, indicating a slight reduction in profitability. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

La-Z-Boy's free cash flow growth rate is strong at 32.7% in the TTM, demonstrating effective cash management. The operating cash flow to net income ratio is healthy at 0.48, and the free cash flow to net income ratio is robust at 0.61, indicating good cash conversion efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.11B	2.05B	2.35B	2.36B	1.73B
Gross Profit	926.42M	881.67M	1.01B	879.79M	740.26M
EBITDA	271.31M	290.76M	322.84M	246.22M	180.32M
Net Income	99.56M	122.63M	150.66M	150.02M	106.46M
Balance Sheet
Total Assets	1.92B	1.91B	1.87B	2.07B	1.90B
Cash, Cash Equivalents and Short-Term Investments	331.07M	347.91M	349.77M	266.21M	415.27M
Total Debt	490.86M	481.75M	445.91M	430.11M	362.64M
Total Liabilities	890.19M	900.08M	914.17M	1.25B	1.12B
Stockholders Equity	1.02B	1.00B	941.84M	810.73M	773.50M
Cash Flow
Free Cash Flow	112.99M	104.58M	136.35M	2.42M	271.96M
Operating Cash Flow	187.27M	158.13M	205.17M	79.00M	309.92M
Investing Cash Flow	-98.39M	-81.55M	-70.12M	-78.37M	-40.70M
Financing Cash Flow	-102.61M	-81.23M	-37.14M	-144.56M	-141.05M

La-Z-Boy Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LZB, the sentiment is Positive. The current price of 39.82 is above the 20-day moving average (MA) of 37.17, above the 50-day MA of 34.07, and above the 200-day MA of 37.01, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 69.20 is Neutral, neither overbought nor oversold. The STOCH value of 51.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LZB.

La-Z-Boy Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.64B	18.31	8.82%	2.27%	1.78%	-25.36%
FLXS	75 Outperform	$226.65M	10.34	14.28%	1.77%	6.00%	64.58%
LEG	68 Neutral	$1.21B	5.55	26.20%	1.73%	-6.03%	―
BSET	66 Neutral	$147.31M	18.99	4.70%	4.72%	-2.74%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	7.23%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.13B	―	-1.18%	4.50%	5.37%	-127.27%

La-Z-Boy Incorporated Corporate Events

La-Z-Boy Elects William C. Boor to Board

On December 8, 2025, La-Z-Boy Incorporated announced the election of William C. Boor to its Board of Directors, expanding the Board to 10 members. Mr. Boor, who is the President and CEO of Cavco Industries, brings extensive experience in governance and supply chain oversight, which is expected to support La-Z-Boy’s Century Vision growth strategy. His leadership in driving transformational growth and strong governance is anticipated to enhance the company’s strategic initiatives and value creation for stakeholders.

La-Z-Boy Reports Strong Q2 2026 Results

La-Z-Boy Incorporated reported solid second-quarter results for fiscal 2026, with sales reaching $522 million, a slight increase from the previous year. The company saw growth in its Retail and Wholesale segments, despite a decline in Joybird sales. Strategic initiatives included the acquisition of a 15-store network in the southeast U.S., plans to exit non-core businesses, and the proposed closure of a UK manufacturing facility. These moves aim to optimize operations and enhance margins, positioning La-Z-Boy for future growth amid a challenging economic environment.

La-Z-Boy Announces Strategic Leadership Realignment

On October 13, 2025, La-Z-Boy Incorporated announced a strategic realignment of its commercial leadership to enhance its focus on core businesses and position itself for long-term growth in the home furnishings industry. The realignment includes the appointment of Tj Linz as President of Wholesale Brands and Rob Sundy as President of Retail, effective October 10, 2025. This restructuring aims to optimize omni-channel capabilities, streamline processes, and improve consumer experiences across its retail network. Rebecca Reeder will leave the company at the end of October 2025. The leadership changes are expected to guide La-Z-Boy into its next chapter of growth and innovation.