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

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LZB

La-Z-Boy Incorporated

(NYSE:LZB)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$32.00
▼(-15.16% Downside)
La-Z-Boy's overall stock score reflects a strong financial foundation and positive earnings call insights, including strategic expansion and dividend growth. However, technical analysis indicates bearish momentum, which tempers the overall outlook. The stock's reasonable valuation and attractive dividend yield provide additional support.

La-Z-Boy Incorporated (LZB) vs. SPDR S&P 500 ETF (SPY)

La-Z-Boy Incorporated Business Overview & Revenue Model

Company DescriptionLa-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 MoneyLa-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 Earnings Call Summary

Earnings Call Date:Nov 18, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced perspective with both positive and negative elements. While the company reports modest sales growth, strong cash flow, and strategic expansion efforts, it also faces challenges with mixed consumer trends, specific market difficulties, and declining segments like Joybird.
Q2-2026 Updates
Positive Updates
Modest Sales Growth
Total delivered sales of $522 million, slightly up from the previous year, with a notable 4% increase in total written sales and 2% growth in the Wholesale segment.
Strong Operating Cash Flow
Generated $50 million in operating cash flow for the quarter, triple the previous year's comparable period.
Dividend Increase
Announced a 10% dividend increase, marking the fifth consecutive year of double-digit increases.
Strategic Store Expansion
Opened 5 new company-owned stores in the quarter, totaling 15 new company-owned stores over the last 12 months, and completed a 15-store acquisition in the Southeast U.S.
Distribution and Home Delivery Transformation
Continued progress with the consolidation of 2 additional distribution centers, aiming to reduce the distribution footprint from 15 to 3 centralized hubs.
Negative Updates
Mixed Consumer Trends
Written same-store sales decreased 2% for the quarter, despite sequential improvement over the last 2 quarters, and early November results remain mixed.
Challenges in Canada
Continued challenges in the Canadian market due to trade tariffs and other factors.
Joybird Sales Decline
Joybird delivered sales were down 10%, primarily due to lower delivered sales volume, leading to an increased operating loss.
Retail Margin Deleverage
Retail adjusted operating margin decreased to 10.7% from 12.6% due to fixed cost deleverage on lower delivered same-store sales and investments in new stores.
Company Guidance
In the La-Z-Boy Fiscal 2026 Second Quarter conference call, the company reported a modest sales growth with total delivered sales reaching $522 million, a slight increase from the previous year. The Wholesale segment saw a 2% growth in delivered sales, driven by its core North American La-Z-Boy Wholesale business, while the Retail segment experienced a 4% rise in total written sales. The company opened five new company-owned stores, contributing to a total of 15 new stores over the past year. La-Z-Boy also announced a 10% dividend increase, marking its fifth consecutive year of double-digit increases. The adjusted operating margin exceeded expectations at 7.1%, while the GAAP operating margin stood at 6.9%. The company generated $50 million in operating cash flow, triple that of the previous year. Strategic moves included a 15-store acquisition in the Southeast U.S., expected to add $80 million in annual retail sales, and plans to exit non-core businesses, which are anticipated to be completed by the end of the fiscal year.

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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.11B2.05B2.35B2.36B1.73B
Gross Profit926.42M881.67M1.01B879.79M740.26M
EBITDA271.31M290.76M322.84M246.22M180.32M
Net Income99.56M122.63M150.66M150.02M106.46M
Balance Sheet
Total Assets1.92B1.91B1.87B2.07B1.90B
Cash, Cash Equivalents and Short-Term Investments331.07M347.91M349.77M266.21M415.27M
Total Debt490.86M481.75M445.91M430.11M362.64M
Total Liabilities890.19M900.08M914.17M1.25B1.12B
Stockholders Equity1.02B1.00B941.84M810.73M773.50M
Cash Flow
Free Cash Flow112.99M104.58M136.35M2.42M271.96M
Operating Cash Flow187.27M158.13M205.17M79.00M309.92M
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 Price37.72
Price Trends
50DMA
32.86
Positive
100DMA
34.92
Positive
200DMA
37.61
Positive
Market Momentum
MACD
0.46
Negative
RSI
72.82
Negative
STOCH
95.60
Negative
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 37.72 is above the 20-day moving average (MA) of 32.15, above the 50-day MA of 32.86, and above the 200-day MA of 37.61, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 95.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$199.95M9.1214.28%1.98%6.00%64.58%
69
Neutral
$1.56B17.408.82%2.97%1.78%-25.36%
66
Neutral
$133.07M17.164.70%5.22%-2.74%
66
Neutral
$614.02M13.079.96%7.86%-4.61%-25.66%
62
Neutral
$1.21B5.5526.20%2.29%-6.03%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
$1.04B-1.18%4.39%5.37%-127.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LZB
La-Z-Boy Incorporated
37.72
-7.08
-15.80%
BSET
Bassett Furniture
15.25
0.74
5.10%
ETD
Ethan Allen
23.02
-6.04
-20.78%
FLXS
Flexsteel
37.82
-20.56
-35.22%
MLKN
MillerKnoll
15.21
-9.42
-38.25%
LEG
Leggett & Platt
9.32
-3.47
-27.13%

La-Z-Boy Incorporated Corporate Events

La-Z-Boy Reports Solid Q2 Results and Strategic Moves
Nov 20, 2025

La-Z-Boy Incorporated is a prominent player in the residential furniture industry, known for its high-quality, custom furniture and iconic brand synonymous with comfort and craftsmanship. The company operates a vertically integrated business model, managing everything from manufacturing to retail and distribution.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
La-Z-Boy Reports Strong Q2 2026 Results
Positive
Nov 18, 2025

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.

The most recent analyst rating on (LZB) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
La-Z-Boy Announces Strategic Leadership Realignment
Positive
Oct 14, 2025

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.

The most recent analyst rating on (LZB) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.

La-Z-Boy’s Earnings Call: Strategic Growth Amid Challenges
Sep 1, 2025

La-Z-Boy Incorporated’s latest earnings call painted a picture of strategic growth and robust financial management, tempered by some significant challenges. The company showcased its strategic expansions and strong cash flow, yet faced hurdles such as declining Joybird sales and retail margin compression due to a challenging consumer environment.

Executive/Board ChangesShareholder Meetings
La-Z-Boy Elects Directors at Annual Meeting
Neutral
Aug 27, 2025

On August 26, 2025, La-Z-Boy Incorporated held its Annual Meeting of Shareholders, where nine director nominees were elected to serve until the 2026 annual meeting. Additionally, the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2026 was ratified, and the compensation of the company’s named executive officers was approved through a non-binding advisory vote.

The most recent analyst rating on (LZB) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.

La-Z-Boy Reports Modest Growth Amid Strategic Expansion
Aug 21, 2025

La-Z-Boy Incorporated, a prominent player in the residential furniture industry, is known for its iconic recliners and operates as a vertically integrated retailer and manufacturer. The company recently reported its first-quarter earnings for fiscal 2026, highlighting growth in its retail and wholesale segments despite a slight overall sales decline. Key financial metrics revealed a 5% increase in retail written sales and a 1% rise in wholesale delivered sales, with operating margins slightly down from the previous year. The company also announced a significant acquisition of a 15-store network, signaling strategic expansion efforts. Looking ahead, La-Z-Boy remains focused on its Century Vision strategy, aiming to navigate current market challenges while positioning itself for future growth.

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.Date of analysis: Nov 20, 2025