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what it is
La-Z-Boy makes and sells recliners, sofas, and other home furniture through wholesale channels and its own retail stores.
how it gets paid
Last year La-Z-Boy made $2.1B in revenue. Recliners was the main engine at $0.90B, or 43% of sales.
why it's growing
Revenue grew 3.0% last year. Gross margin at 43.3% mattered because it shows La-Z-Boy still has pricing and merchandising discipline even with uneven demand.
what just happened
La-Z-Boy's last reported quarter beat by a hair, with EPS of $0.61 versus $0.60 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
80/100 earnings predictability — you can trust these numbers
13.5x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
11.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
La-Z-Boy makes and sells recliners, sofas, and other home furniture through wholesale channels and its own retail stores.
La-Z-Boy wins because furniture is still a touch-it, sit-in-it purchase, and it has the footprint to meet you there. The company owns 354 Gallery stores and has 555 Comfort Studio locations, backed by 7 U.S. factories, 6 regional distribution centers, and 1 Mexico facility. That scale lets it control product, delivery, and floor space in a category where waiting weeks for a couch is how you lose the sale.
How they make money
$2.1B
annual revenue · their business grew +3.0% last year
Recliners
$0.90B
+1.0%
Other upholstery
$0.55B
+2.0%
Retail stores
$0.45B
+6.0%
Casegoods
$0.15B
3.0%
Other
$0.05B
flat
The products that matter
manufactures recliners and sofas
Upholstery
$1.6B · 76% of revenue
This is the business. At $1.6B and 76% of sales, it decides whether a good quarter exists.
76% of rev
sells tables and cabinets
Casegoods
$0.3B · 14% of revenue
Casegoods adds breadth, but at $0.3B it doesn't rewrite the earnings story on its own. Helpful, not decisive.
14% of rev
operates branded retail stores
Retail Stores
$0.2B · 10% of revenue
The store base gives La-Z-Boy control over the customer experience. It also means retail expansion and delivery changes hit costs before they help profits.
cost watch
Key numbers
13.5x
trailing p/e
P/E → stock price divided by yearly profit → so what: you are paying $13.50 for each $1 of trailing earnings.
11.5%
operating margin
Operating margin → profit left after running the business → so what: La-Z-Boy keeps about 11.5 cents from each sales dollar before interest and taxes.
2.9%
dividend yield
Dividend yield → cash paid to shareholders each year as a share of the stock price → so what: you get paid while you wait.
11.0%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: this is decent, not elite, for a branded furniture company.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- net profit margin 6.7% — keeps 7 cents of every dollar in revenue
- return on equity 11% — $0.11 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LZB 3 years ago → it's now worth $11,970.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
La-Z-Boy's last reported quarter beat by a hair, with EPS of $0.61 versus $0.60 expected.
Revenue for the quarter was about $522.5M, above the $517.7M consensus cited in earnings coverage. Gross margin was 43.3%, which matters more than the penny beat because store traffic has been weak.
$522.5M
revenue
$0.61
eps
43.3%
gross margin
the number that mattered
Gross margin at 43.3% mattered because it shows La-Z-Boy still has pricing and merchandising discipline even with uneven demand.
-
fiscal 2025 (ends april 30th) was operatinoally choppy for la-z-boy.
-
sales will likely edge higher, but earnings probably slid roughly 11% from a year ago.
-
the furniture company’s performance was mainly pressured by persistently weak consumer traffic across the furniture industry, which led to same-store sales declines.
-
this was compounded by higher costs associated with an expanding retail footprint.in addition, incremental investment in the distribution and home delivery business transformation, along with friction costs from exiting noncore businesses and further losses from joybird have also proven problematic. while there was some top-line support from acquisitions and new store openings, it was not enough to offset the aforementioned stressors.
-
nonetheless, fiscal 2026 and 2027 should be more favorable.recovery will likely be fueled by the full annualization of 75 to 100 basis points in margin improvement from completed strategic initiatives.
source: company earnings report, 2026
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What could go wrong
The main risk is simple: La-Z-Boy needs modest sales growth to turn into actual earnings growth, and that has not been happening.
med
empty showrooms hit the core business first
Same-store sales weakness already matters here because upholstery is $1.6B of revenue. If traffic stays soft, the biggest segment takes the hit before the smaller ones can help.
76% of revenue sits in upholstery
high
cost growth keeps outrunning sales growth
The latest quarter had revenue up 4% and EPS down 24%. That's the kind of gap that tells you labor, delivery, retail expansion, and operating friction still have too much say.
6.0% net margin leaves little cushion
med
turnaround work keeps taking longer than the market wants
Distribution and home delivery changes, noncore exits, and Joybird losses have already been called out as friction. If the cleanup drags, the earnings recovery drags with it.
75–100 basis points of improvement needs to show up
med
the brand is good, but not magic
An 11% return on equity and 11.0% return on capital say La-Z-Boy is a decent operator in a competitive category. They do not say pricing power is automatic.
13.5x earnings can stay 13.5x for a long time
When a company keeps 6 cents of every revenue dollar, small operating misses can create big earnings disappointments. That's the part you have to respect here.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
The next report on June 16, 2026 needs to answer one question: are margins stabilizing, or was the 24% EPS drop the new normal.
metric
gross margin versus EPS
42.7% gross margin sounds fine. You care whether that still reaches the bottom line after store and delivery costs take their cut.
risk
store traffic
Weak showroom traffic has already shown up in same-store sales. If that persists, upholstery concentration stops being a feature and starts being exposure.
trend
institutional follow-through
97 buyers versus 87 sellers in 4Q2025 is supportive, but it is not a stampede. You want to see if that quiet buying continues.
Analyst rankings
short-term outlook
average
outlook rank 3 — in human-speak, analysts see a normal stock, not a breakout one.
risk profile
average
risk rank 3 — middle of the pack. Not especially safe, not especially wild.
chart momentum
average
momentum rank 3 — the chart is waiting for the business to say something more convincing.
earnings predictability
80 / 100
Management has been fairly consistent on guidance. The operations may wobble, but the reporting usually tells you where the wobble is.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 97 buyers vs. 87 sellers in 4q2025. total institutional holdings: 39.4M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$27
$55
$36
current price
$41
target midpoint · +15% from current · 3-5yr high: $80 (+125% · 24% ann'l return)
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