La-Z-Boy Incorporated (NYSE: LZB), based in Monroe, Michigan, is a well-known manufacturer and retailer of residential furniture, including its iconic recliners and a wide variety of upholstered seating and home furnishings. The company operates a network of over 200 company-owned La-Z-Boy Furniture Galleries stores in the U.S., alongside a significant wholesale distribution operation.

In its latest quarterly report for the fiscal 2025 fourth quarter, La-Z-Boy demonstrated a stable condition within its operations, with consolidated delivered sales rising 3% year-over-year to $571 million, driven largely by acquisitions and new store openings. The retail segment delivered sales increased 8%, while the wholesale segment grew by 2%. For the full fiscal year, the company reported consolidated sales of $2.1 billion, again growing 3% compared to the prior year, with retail sales specifically up 5%.

For the fourth quarter, La-Z-Boy presented a GAAP operating income of $30 million and an adjusted operating income of $54 million, marking a 3% increase from the previous year. The consolidated GAAP operating margin stood at 5.2%, while the adjusted operating margin was 9.4%, unchanged compared to the same quarter the prior year. The diluted earnings per share were $0.36 on a GAAP basis and $0.92 on an adjusted basis, both reflecting a $0.10 impact from unfavorable foreign tax discrete items.

In terms of cash flow, La-Z-Boy generated $62 million in operating cash flow during the fourth quarter, a rise of 17% compared to the previous year’s same period, contributing to a total operational cash flow of $187 million for fiscal 2025, which is up 18% year-over-year. The company maintains a strong balance sheet, ending the fiscal year with $328 million in cash and no external debt.

The retail segment’s written sales during the fourth quarter grew 3%, with same-store sales decreasing 5% attributed to ongoing challenges from high mortgage rates and overall economic volatility affecting consumer sentiment. The company noted that industry trends were mixed, with some peers reporting flat or declining sales, whereas broader industry data indicated a moderate increase.

Looking ahead, La-Z-Boy expects first-quarter fiscal 2026 sales of between $490 million and $510 million, indicative of modest growth against a challenging consumer environment. They anticipate an adjusted operating margin between 5.5% and 7%, accounting for pressures from the U.K. and Joybird businesses, as well as ongoing investments in their distribution and home delivery redesign. They also project capital expenditures to be in the range of $90 million to $100 million for fiscal 2026.

Overall, La-Z-Boy’s steady growth in sales and strengthening operating cash flow reflects its comprehensive strategy to expand its retail footprint and improve operational efficiencies, despite the ongoing challenges in the macroeconomic landscape.