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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:
$41.00
▲(15.01% Upside)
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
Cash generation & free cash flow
Sustained operating cash flow and meaningful free cash flow provide durable internal funding for capex, store openings, M&A and shareholder returns. Strong cash generation improves flexibility through cycles and underpins the company’s ability to invest in distribution and margin-improvement projects.
Healthy balance sheet & liquidity
Manageable leverage with substantial equity and a strong cash position reduces refinancing and liquidity risk, allowing La‑Z‑Boy to pursue strategic initiatives and acquisitions while preserving investment flexibility and protecting the business against cyclical retail downturns.
Retail network expansion & acquisition
Expanding company-owned stores and integrating an accretive 15‑store acquisition strengthen retail revenue mix, increase control over customer experience and margin capture, and create a scalable platform for repeat sales and higher lifetime value versus wholesale channels.
Negative Factors
Margin compression
Operating and net margin deterioration indicate weaker operating leverage or higher structural costs. Sustained margin pressure reduces internal reinvestment capacity and shareholder return potential, making margin recovery a critical multi-quarter execution challenge for sustainable profitability.
Joybird volatility and losses
A volatile, loss-making sub-brand creates earnings unpredictability and fixed-cost deleverage across the consolidated business. Persistent underperformance requires either turnaround investment or portfolio action, both of which can consume cash and management bandwidth over multiple quarters.
Portfolio changes reduce sales and add execution risk
Exiting noncore businesses and restructuring manufacturing can improve margins long-term but reduce near-term sales and introduce sourcing and integration risks. Successful realization of projected 75–100 bps margin gains depends on flawless execution over several quarters.
La-Z-Boy Incorporated (LZB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.46B
Dividend Yield2.39%
Average Volume (3M)385.54K
Price to Earnings (P/E)17.7
Beta (1Y)0.61
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. Volume465,957
30 Day Avg. Volume385,535
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 Cap1.52
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit2.39
Enterprise Value/Ebitda8.81
Forecast
1Y Price Target
$44.50Price Target Upside24.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.71
Revenue Forecast (FY)$2.14B
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: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.Q3-2026 Updates
Positive Updates
Consolidated Revenue Growth
Total delivered sales of $542 million, up 4% versus prior year.
Retail Segment Strength
Retail delivered and written sales increased 11% versus prior year to $252 million; new and acquired stores were key drivers.
Store Expansion and Network Growth
Opened 4 new company-owned stores in the quarter; 16 new stores in the last 12 months; reported 29 net company-owned store additions over the past year; total store network expanded to 374 with company-owned proportion at an all-time high of 60%; plan to grow network toward 400+ stores and open ~16 this fiscal year (and ~10/year thereafter).
Successful Acquisition Integration
Completed integration of a 15-store Southeast acquisition that adds ~$80 million in annualized retail sales and approximately $40 million net to the enterprise; acquisition cost was $86 million.
Strong Cash Generation and Balance Sheet
Generated $89 million in operating cash flow for the quarter, up 57% year-over-year; ended the quarter with $306 million in cash and no externally funded debt.
Profitability and Margins (GAAP & Adjusted)
GAAP operating margin of 5.5% and adjusted operating margin of 6.1%, toward the high end of guidance; consolidated GAAP operating income $30 million and adjusted operating income $33 million; diluted GAAP EPS $0.52 and adjusted EPS $0.61.
Progress on Distribution & Home Delivery Transformation
Completed the Western U.S. phase (new Arizona hub) and broke ground on Dayton, TN hub; project expected to deliver 50–75 basis points of Wholesale margin improvement and up to ~50 basis points to the enterprise long-term.
Portfolio Optimization & Strategic Actions
Completed sale of Kincaid upholstery business, signed LOI for sale of noncore casegoods (American Drew and Kincaid), and announced planned closure of U.K. manufacturing; strategic initiatives expected to deliver 75–100 basis points of adjusted operating margin improvement (annualized) once substantially complete, and ~ $30 million net annualized sales impact.
Shareholder Returns Resumed
Year-to-date returned $55 million to shareholders ( $28M dividends, $27M buybacks ); resumed normalized share repurchases of $14 million in the quarter with ~3 million shares remaining under authorization.
Brand & Recognition Momentum
Brand refresh received positive press (Ad Age top 5 rebrands of 2025) and La-Z-Boy named one of America's most iconic companies by Time Magazine for 2026, supporting marketing/brand momentum.
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.
Joybird Sales Volatility
Joybird total written sales decreased 13% year-over-year (Melinda); Joybird delivered sales $36 million, down 3% (Taylor); Joybird operating loss widened due to fixed cost deleverage on lower volume.
Wholesale Margin Pressure
Wholesale adjusted operating margin declined to 6.0% from 6.5% a year ago (down ~50 basis points), driven primarily by investments in the distribution/home delivery project and unfavorable foreign exchange.
Short-Term Margin & SG&A Headwinds
Consolidated adjusted SG&A as a percent of sales increased 80 basis points year-over-year due to mix shift to Retail (higher fixed costs) and fixed cost deleverage from lower same-store sales; near-term investment in transformation projects weighed on margins.
Weather-Related Timing Impact
Widespread adverse weather in late January/early February reduced store traffic and created timing effects expected to weigh on fourth-quarter deliveries and add conservatism to guidance.
U.K. Restructuring and One-Time Effects
Planned closure of U.K. manufacturing by fiscal year-end and supply chain optimization actions resulted in nondeductible operating losses and one-time charges, increasing the GAAP tax rate to 31.3% in Q3 (versus 25.1% prior-year); tax rate expected to normalize in fiscal 2027.
Near-Term Guidance Conservatism
Fourth-quarter guidance reflects caution: expected sales $560–$580 million and adjusted operating margin 7.5%–9% (management cites macro uncertainty and recent weather), and full-year capex guidance raised to $80–$90 million to fund growth and transformation.
Operational Complexity from Portfolio Changes
Ongoing sales of noncore businesses and closures introduce transitional complexity (sourcing, integration of alternate suppliers) and an expected ~$30 million net sales decrease annualized from strategic initiatives, requiring execution to realize margin benefits.
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
Financials are solid but mixed: revenue is roughly flat (+1% TTM) and profitability has weakened (net margin ~3.9% TTM vs ~4.7% last year; EBIT margin ~4.5% vs ~7.0%). Offsetting this, the balance sheet remains healthy with manageable leverage (~0.55x debt/equity) and cash generation improved meaningfully (TTM OCF ~$238M; FCF ~$158M).Income Statement
TTM (Trailing-Twelve-Months) revenue is essentially flat versus the prior year (about +1%), but profitability has softened: net margin fell to ~3.9% in TTM from ~4.7% last year and ~6%+ in 2023–2024. Operating profitability also compressed (EBIT margin ~4.5% TTM vs ~7.0% last year), indicating weaker operating leverage and/or higher costs. Gross margin remains healthy (~43–44%), but the drop in operating and net margins is a key near-term concern.62
Positive
Balance Sheet
Leverage looks manageable with debt at ~0.55x equity in TTM (up modestly from ~0.48x last year), and equity remains substantial (~$1.04B) relative to the asset base (~$2.09B). Returns on equity are positive but trending down (about ~8.8% TTM vs ~9.8% last year and higher in prior years), reflecting the recent earnings pressure. Overall, the balance sheet is solid, though rising debt and lower returns reduce the score.70
Positive
Cash Flow
Cash generation is a relative strength: TTM operating cash flow improved to ~$238M and free cash flow to ~$158M, with strong free-cash-flow growth versus last year. However, cash conversion is only moderate—free cash flow is ~66% of net income in TTM (similar to recent years but below the stronger 2021 level). The trend is favorable, but variability across years (notably the very weak 2022 free cash flow) suggests cash flow can be cyclical.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
35.65
Price Trends
37.83
Negative
36.01
Negative
36.74
Negative
Market Momentum
-0.58
Positive
42.37
Neutral
55.47
Neutral
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 35.65 is below the 20-day moving average (MA) of 37.13, below the 50-day MA of 37.83, and below the 200-day MA of 36.74, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 55.47 is Neutral, 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 | $269.04M | 14.05 | 14.28% | 1.77% | 6.00% | 64.58% | |
70 Outperform | $574.32M | 13.25 | 9.21% | 7.86% | -4.26% | ― | |
65 Neutral | $1.46B | 17.73 | 8.11% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.37B | -52.10 | -1.95% | 4.16% | 4.34% | -141.36% | |
57 Neutral | $128.86M | 21.33 | 4.70% | 4.59% | -2.74% | ― | |
57 Neutral | $1.56B | 6.87 | 27.51% | 1.84% | -6.03% | ― |
* Consumer Cyclical Sector Average
LZB
La-Z-Boy Incorporated
35.65
-6.87
-16.16%
BSET
Bassett Furniture
14.89
-0.03
-0.20%
ETD
Ethan Allen
22.57
-3.45
-13.28%
FLXS
Flexsteel
50.33
8.23
19.55%
MLKN
MillerKnoll
20.05
-0.14
-0.69%
LEG
Leggett & Platt
11.50
2.79
31.97%
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 operating margin was 5.5% and adjusted margin 6.1%, diluted EPS reached $0.52 on a GAAP basis and $0.61 adjusted, and operating cash flow surged 57% to $89 million.
The company advanced key strategic initiatives, adding four new company-owned stores in the quarter and 16 over the past 12 months, integrating a 15-store acquisition in the U.S. Southeast and lifting company-owned locations to roughly 60% of its network. It also moved to focus on core branded upholstery by closing its U.K. manufacturing facility by year-end, completing the sale of its Kincaid upholstery business and signing a letter of intent to sell its American Drew and Kincaid casegoods lines, while completing the western U.S. phase of its distribution and home-delivery transformation project.
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.
Business Operations and StrategyExecutive/Board Changes
La-Z-Boy Elects William C. Boor to Board
Positive
Dec 9, 2025
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.
The most recent analyst rating on (LZB) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on La-Z-Boy Incorporated stock, see the LZB Stock Forecast page.
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.