La-Z-Boy reported total delivered sales of $542 million in its fiscal third quarter, a 4% year-over-year increase, with adjusted operating income of $33 million (6.1% margin) at the high end of guidance. GAAP operating income was $30 million (5.5% margin), diluted EPS was $0.52 GAAP and $0.61 adjusted, operating cash flow reached $89 million (up 57%), cash stood at $306 million, and the company held no externally funded debt.

Retail delivered sales climbed 11% to $252 million, driven by a record 15-store acquisition that added approximately $80 million in annualized sales. The company opened four new company-owned stores during the quarter, bringing its network to 374 locations with a company-owned share of 60%, and sees potential to exceed 400 stores over time.

Wholesale delivered sales rose 1% to $367 million, while adjusted wholesale margin dipped to 6% due to distribution investments and unfavorable FX. The Western U.S. central hub is complete and an Eastern hub in Tennessee is underway, aiming to boost wholesale margins by 50–75 basis points and enterprise margins by about 50 basis points.

La-Z-Boy is exiting non-core casegoods and closing its U.K. plant by end of fiscal 2026, actions expected to reduce annualized sales by $30 million but improve adjusted operating margin by 75–100 basis points. Joybird delivered sales fell 3% to $36 million, with written sales down 13%, as fixed-cost deleverage weighed on its operating loss.