La-Z-Boy Incorporated has reported a challenging start to fiscal 2026, with consolidated first-quarter sales falling 1% year over year to $492 million. While the company's core retail and wholesale segments showed modest gains, a 20% decline at its Joybird brand, which specialises in modern and mid-century-inspired furniture, weighed heavily on overall performance.
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CEO Melinda Whittington highlighted the impact of cautious consumer spending amid a sluggish housing market, noting that discretionary items like furniture are especially vulnerable. 'We're balancing our optimism in the long-term industry fundamentals and our competitive positioning with a pragmatic approach to current uneven consumer demand,' she said.
La-Z-Boy is pursuing expansion despite challenges, opening two new company-owned Furniture Galleries and acquiring a 15-store Furniture Galleries network in the Southeast, the largest independent acquisition in its history. The company is also modernising its supply chain with a new Arizona distribution centre, the first of three planned hubs.
CFO Taylor Luebke reported $36 million in operating cash flow and $18 million in capital expenditures, while the company ended the quarter with $319 million in cash and no debt. Analysts remain cautious, citing Joybird's ongoing struggles, potential margin pressure from new stores, and consumer uncertainty, though La-Z-Boy continues to execute its long-term Century Vision growth strategy.
Source: www.thestreet.com
