La-Z-Boy Incorporated (LZB)
NYSE:LZB
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La-Z-Boy Incorporated
(NYSE:LZB)
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Rating:65Neutral
Price Target:
$34.00
▼(-0.32% Downside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by steady financial quality with strong recent cash generation and a solid balance sheet, tempered by notable TTM margin compression. The latest earnings call adds support via clear strategic actions and a path to margin improvement, while technical indicators are largely neutral and valuation appears reasonable rather than compelling.
Positive Factors
Strong cash generation & healthy liquidity
Material and recurring operating cash flow improvement plus a sizable cash balance and no externally funded debt provide durable financial flexibility. This supports capex for distribution and retail growth, consistent share returns, debt management and resilience through consumer cycles over the next several quarters.
Negative Factors
Operating and net margin compression
Consistent compression of operating and net margins signals weakened operating leverage and higher structural costs. If margins remain depressed, returns on capital and cash conversion may be constrained, requiring sustained execution of cost saves and mix shifts to restore prior profitability levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & healthy liquidity
Material and recurring operating cash flow improvement plus a sizable cash balance and no externally funded debt provide durable financial flexibility. This supports capex for distribution and retail growth, consistent share returns, debt management and resilience through consumer cycles over the next several quarters.
Read all positive factors
La-Z-Boy Incorporated (LZB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend Yield2.39%
Average Volume (3M)422.19K
Price to Earnings (P/E)18.1
Beta (1Y)0.63
Revenue Growth1.78%
EPS Growth-25.36%
CountryUS
Employees10,200
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.61
Shares Outstanding40,923,710
10 Day Avg. Volume371,435
30 Day Avg. Volume422,193
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)1.61
Price to Sales (P/S)0.78
P/FCF Ratio14.54
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit2.32
Enterprise Value/Ebitda8.56
Forecast
1Y Price Target
$44.50Price Target Upside30.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.63
Revenue Forecast (FY)$2.13B
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, ...
How the Company Makes Money
La-Z-Boy makes money primarily by selling home furnishings (especially upholstered furniture such as recliners, sofas, and sectionals) through both wholesale and retail channels. On the wholesale side, the company generates revenue by producing an...
La-Z-Boy Incorporated Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 23, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive outlook driven by solid consolidated revenue growth (+4% to $542M), strong retail expansion and integration (retail +11%, major 15-store acquisition adding ~$80M annualized), robust operating cash flow (+57% to $89M), and clear progress on distribution and strategic portfolio actions that are expected to yield material margin improvement (75–100 bps enterprise; 50–75 bps Wholesale). Near-term challenges include same-store retail declines (-4%), continued Joybird volatility (written sales -13%/delivered -3%), Wholesale margin pressure (down ~50 bps) and weather- and restructuring-related timing and one-time impacts (higher SG&A as % of sales +80 bps; GAAP tax rate spike to 31.3%). On balance, the positives around cash generation, strategic execution, store network growth, and a path to structural margin improvement outweigh the near-term operational and macro headwinds.Positive Updates
Consolidated Revenue Growth
Total delivered sales of $542 million, up 4% versus prior year.
Negative Updates
Same-Store Retail Weakness
Written same-store sales decreased 4% for the quarter, reflecting challenging store traffic despite higher conversion, average ticket and design sales.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total delivered sales of $542 million, up 4% versus prior year.
Read all positive updates
Company Guidance
La‑Z‑Boy guided fiscal 2026 fourth‑quarter sales of $560–$580 million with adjusted operating margin of 7.5%–9%, plans to open 5 new company‑owned stores in Q4 (16 new stores for the full fiscal year), and expects full‑year capital expenditures of $80–$90 million (Q3 capex was $18 million); they closed a 15‑store acquisition for $86 million, finished Q3 with $306 million cash and no externally funded debt, and generated $89 million of operating cash flow in Q3 (+57% YoY). Management said its portfolio actions will have an approximate $30 million annualized net sales decrease but drive a 75–100 basis‑point adjusted operating‑margin improvement (with the distribution/home‑delivery transformation expected to deliver 50–75 bps to Wholesale and up to 50 bps to the enterprise), anticipates a full‑year tax rate of 27%–29%, returned $55 million to shareholders year‑to‑date (dividends $28M, repurchases $27M, including $14M in the quarter, with ~3M shares remaining), and reiterated a capital allocation target to reinvest ~50% of operating cash flow and return ~50% to shareholders.La-Z-Boy Incorporated Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.13B | 2.11B | 2.05B | 2.35B | 2.36B | 1.73B |
| Gross Profit | 924.91M | 926.42M | 881.67M | 1.01B | 879.79M | 740.26M |
| EBITDA | 251.19M | 271.31M | 290.76M | 322.84M | 246.22M | 180.32M |
| Net Income | 83.64M | 99.56M | 122.63M | 150.66M | 150.02M | 106.46M |
Balance Sheet | ||||||
| Total Assets | 2.09B | 1.92B | 1.91B | 1.87B | 2.07B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 308.90M | 331.07M | 347.91M | 349.77M | 266.21M | 415.27M |
| Total Debt | 1.05B | 490.86M | 481.75M | 445.91M | 430.11M | 362.64M |
| Total Liabilities | 1.03B | 890.19M | 900.08M | 914.17M | 1.25B | 1.12B |
| Stockholders Equity | 1.04B | 1.02B | 1.00B | 941.84M | 810.73M | 773.50M |
Cash Flow | ||||||
| Free Cash Flow | 158.21M | 112.99M | 104.58M | 136.35M | 2.42M | 271.96M |
| Operating Cash Flow | 237.69M | 187.27M | 158.13M | 205.17M | 79.00M | 309.92M |
| Investing Cash Flow | -164.94M | -98.39M | -81.55M | -70.12M | -78.37M | -40.70M |
| Financing Cash Flow | -82.39M | -102.61M | -81.23M | -37.14M | -144.56M | -141.05M |
La-Z-Boy Incorporated Technical Analysis
Negative
34.11
Price Trends
34.59
Negative
36.26
Negative
35.43
Negative
Market Momentum
-0.26
Negative
56.55
Neutral
92.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LZB, the sentiment is Negative. The current price of 34.11 is above the 20-day moving average (MA) of 32.55, below the 50-day MA of 34.59, and below the 200-day MA of 35.43, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LZB.
La-Z-Boy Incorporated Risk Analysis
La-Z-Boy Incorporated disclosed 21 risk factors in its most recent earnings report. La-Z-Boy Incorporated reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
La-Z-Boy Incorporated Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $268.72M | 7.91 | 12.37% | 1.77% | 6.00% | 64.58% | |
70 Outperform | $565.93M | 12.45 | 9.20% | 7.86% | -4.26% | ― | |
65 Neutral | $1.38B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.53B | 6.47 | 26.15% | 1.84% | -6.03% | ― | |
50 Neutral | $1.07B | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
48 Neutral | $121.93M | 29.10 | 3.24% | 4.59% | -2.74% | ― |
* Consumer Cyclical Sector Average
LZB
La-Z-Boy Incorporated
34.11
-3.01
-8.11%
BSET
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14.70
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-9.07%
ETD
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22.46
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45.22%
MLKN
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16.21
0.69
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LEG
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11.50
4.96
75.84%
La-Z-Boy Incorporated Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
La-Z-Boy Posts Q3 Sales Growth and Margin Expansion
Positive
Feb 17, 2026
La-Z-Boy reported fiscal 2026 third-quarter results on February 17, 2026, with sales of $542 million, up 4% year on year, driven by double-digit growth in its Retail segment and modest gains in Wholesale, despite weaker Joybird sales. GAAP operati...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.