# EDGAR Filing Document

**Accession Number:** 0000057131
**File Stem:** 0000057131-25-000081
**Filing Date:** 2025-8
**Character Count:** 117736
**Document Hash:** 1e129e50c39a511aef18ae44c3af43c3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000057131-25-000081.hdr.sgml**: 20250819

**ACCESSION NUMBER**: 0000057131-25-000081

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20250726

**FILED AS OF DATE**: 20250819

**DATE AS OF CHANGE**: 20250819

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LA-Z-BOY INC
- **CENTRAL INDEX KEY:** 0000057131
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOUSEHOLD FURNITURE [2510]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 380751137
- **STATE OF INCORPORATION:** MI
- **FISCAL YEAR END:** 0425

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-09656
- **FILM NUMBER:** 251232058

**BUSINESS ADDRESS:**
- **STREET 1:** ONE LA-Z-BOY DRIVE
- **CITY:** MONROE
- **STATE:** MI
- **ZIP:** 48162
- **BUSINESS PHONE:** 7342421444

**MAIL ADDRESS:**
- **STREET 1:** ONE LA-Z-BOY DRIVE
- **CITY:** MONROE
- **STATE:** MI
- **ZIP:** 48162

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LA Z BOY CHAIR CO
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? lzb-20250726

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

![LZB Logo.jpg](lzb-20250726_g1.jpg)

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q** 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 26, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

COMMISSION FILE NUMBER 1-9656

**LA-Z-BOY INCORPORATED**

(Exact name of registrant as specified in its charter)

Michigan 38-0751137 <br> (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

One La-Z-Boy Drive, Monroe, Michigan 48162-5138 <br> (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (734) 242-1444

None

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $1.00 Par Value | LZB | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

---

| | |
|:---|:---|
| Class | Outstanding at August 12, 2025 |
| Common Stock, $1.00 Par Value | 41207237 |

---

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**LA-Z-BOY INCORPORATED**

**FORM 10-Q FIRST QUARTER OF FISCAL 2026**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | Page<br>Number |
| <u>[PART I Financial Information (Unaudited)](#i0807eeaf7a9a4833bba7d5e1ee648ca9_10)</u> | <u>[PART I Financial Information (Unaudited)](#i0807eeaf7a9a4833bba7d5e1ee648ca9_10)</u> | &nbsp;&nbsp;[3](#i0807eeaf7a9a4833bba7d5e1ee648ca9_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 1.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_13)</u> | <u>[Financial Statements](#i0807eeaf7a9a4833bba7d5e1ee648ca9_13)</u> | &nbsp;&nbsp;[3](#i0807eeaf7a9a4833bba7d5e1ee648ca9_13) |
|  | <u>[Consolidated Statement of Income](#i0807eeaf7a9a4833bba7d5e1ee648ca9_16)</u> | &nbsp;&nbsp;[3](#i0807eeaf7a9a4833bba7d5e1ee648ca9_16) |
|  | <u>[Consolidated Statement of Comprehensive Income](#i0807eeaf7a9a4833bba7d5e1ee648ca9_19)</u> | &nbsp;&nbsp;[4](#i0807eeaf7a9a4833bba7d5e1ee648ca9_19) |
|  | <u>[Consolidated Balance Sheet](#i0807eeaf7a9a4833bba7d5e1ee648ca9_22)</u> | &nbsp;&nbsp;[5](#i0807eeaf7a9a4833bba7d5e1ee648ca9_22) |
|  | <u>[Consolidated Statement of Cash Flows](#i0807eeaf7a9a4833bba7d5e1ee648ca9_25)</u> | &nbsp;&nbsp;[6](#i0807eeaf7a9a4833bba7d5e1ee648ca9_25) |
|  | <u>[Consolidated Statement of Changes in Equity](#i0807eeaf7a9a4833bba7d5e1ee648ca9_28)</u> | &nbsp;&nbsp;[7](#i0807eeaf7a9a4833bba7d5e1ee648ca9_28) |
|  | <u>[Notes to Consolidated Financial Statements](#i0807eeaf7a9a4833bba7d5e1ee648ca9_31)</u> | &nbsp;&nbsp;[8](#i0807eeaf7a9a4833bba7d5e1ee648ca9_31) |
|  | &nbsp;&nbsp;<u>[Note 1. Basis of Presentation](#i0807eeaf7a9a4833bba7d5e1ee648ca9_34)</u> | &nbsp;&nbsp;[8](#i0807eeaf7a9a4833bba7d5e1ee648ca9_34) |
|  | &nbsp;&nbsp;<u>[Note 2. Acquisitions](#i0807eeaf7a9a4833bba7d5e1ee648ca9_37)</u> | &nbsp;&nbsp;[8](#i0807eeaf7a9a4833bba7d5e1ee648ca9_34) |
|  | &nbsp;&nbsp;<u>[Note](#i0807eeaf7a9a4833bba7d5e1ee648ca9_43)[3](#i0807eeaf7a9a4833bba7d5e1ee648ca9_43)[. Inventories](#i0807eeaf7a9a4833bba7d5e1ee648ca9_43)</u> | &nbsp;&nbsp;[9](#i0807eeaf7a9a4833bba7d5e1ee648ca9_43) |
|  | &nbsp;&nbsp;<u>[Note](#i0807eeaf7a9a4833bba7d5e1ee648ca9_46)[4](#i0807eeaf7a9a4833bba7d5e1ee648ca9_46)[. Goodwill and Other Intangible Assets](#i0807eeaf7a9a4833bba7d5e1ee648ca9_46)</u> | &nbsp;&nbsp;[9](#i0807eeaf7a9a4833bba7d5e1ee648ca9_46) |
|  | &nbsp;&nbsp;<u>[Note](#i0807eeaf7a9a4833bba7d5e1ee648ca9_49)[5](#i0807eeaf7a9a4833bba7d5e1ee648ca9_49)[. Investments](#i0807eeaf7a9a4833bba7d5e1ee648ca9_49)</u> | &nbsp;&nbsp;[1](#i0807eeaf7a9a4833bba7d5e1ee648ca9_49)[0](#i0807eeaf7a9a4833bba7d5e1ee648ca9_49) |
|  | &nbsp;&nbsp;<u>[No](#i0807eeaf7a9a4833bba7d5e1ee648ca9_1104)[t](#i0807eeaf7a9a4833bba7d5e1ee648ca9_1104)[e 6. Debt](#i0807eeaf7a9a4833bba7d5e1ee648ca9_1104)</u> | &nbsp;&nbsp;[11](#i0807eeaf7a9a4833bba7d5e1ee648ca9_1104) |
|  | &nbsp;&nbsp;<u>[Note 7. Product Warranties](#i0807eeaf7a9a4833bba7d5e1ee648ca9_52)</u> | &nbsp;&nbsp;[11](#i0807eeaf7a9a4833bba7d5e1ee648ca9_52) |
|  | &nbsp;&nbsp;<u>[Note 8. Stock-Based Compensation](#i0807eeaf7a9a4833bba7d5e1ee648ca9_55)</u> | &nbsp;&nbsp;[12](#i0807eeaf7a9a4833bba7d5e1ee648ca9_55) |
|  | &nbsp;&nbsp;<u>[Note 9. Accumulated Other Comprehensive Loss](#i0807eeaf7a9a4833bba7d5e1ee648ca9_58)</u> | &nbsp;&nbsp;[13](#i0807eeaf7a9a4833bba7d5e1ee648ca9_58) |
|  | &nbsp;&nbsp;<u>[Note 10. Revenue Recognition](#i0807eeaf7a9a4833bba7d5e1ee648ca9_61)</u> | &nbsp;&nbsp;[13](#i0807eeaf7a9a4833bba7d5e1ee648ca9_61) |
|  | &nbsp;&nbsp;<u>[Note 11. Segment Information](#i0807eeaf7a9a4833bba7d5e1ee648ca9_64)</u> | &nbsp;&nbsp;[15](#i0807eeaf7a9a4833bba7d5e1ee648ca9_64) |
|  | &nbsp;&nbsp;<u>[Note 12. Income Taxes](#i0807eeaf7a9a4833bba7d5e1ee648ca9_67)</u> | &nbsp;&nbsp;[17](#i0807eeaf7a9a4833bba7d5e1ee648ca9_67) |
|  | &nbsp;&nbsp;<u>[Note 13. Earnings per Share](#i0807eeaf7a9a4833bba7d5e1ee648ca9_70)</u> | &nbsp;&nbsp;[18](#i0807eeaf7a9a4833bba7d5e1ee648ca9_70) |
|  | &nbsp;&nbsp;<u>[Note 14. Fair Value Measurements](#i0807eeaf7a9a4833bba7d5e1ee648ca9_73)</u> | &nbsp;&nbsp;[18](#i0807eeaf7a9a4833bba7d5e1ee648ca9_73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 2.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_76)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i0807eeaf7a9a4833bba7d5e1ee648ca9_76)</u> | &nbsp;&nbsp;[20](#i0807eeaf7a9a4833bba7d5e1ee648ca9_76) |
|  | <u>[Cautionary Note Regarding Forward-Looking Statements](#i0807eeaf7a9a4833bba7d5e1ee648ca9_79)</u> | &nbsp;&nbsp;[20](#i0807eeaf7a9a4833bba7d5e1ee648ca9_79) |
|  | <u>[Introduction](#i0807eeaf7a9a4833bba7d5e1ee648ca9_82)</u> | &nbsp;&nbsp;[20](#i0807eeaf7a9a4833bba7d5e1ee648ca9_82) |
|  | <u>[Results of Operations](#i0807eeaf7a9a4833bba7d5e1ee648ca9_85)</u> | &nbsp;&nbsp;[23](#i0807eeaf7a9a4833bba7d5e1ee648ca9_85) |
|  | <u>[Liquidity and Capital Resources](#i0807eeaf7a9a4833bba7d5e1ee648ca9_100)</u> | &nbsp;&nbsp;[25](#i0807eeaf7a9a4833bba7d5e1ee648ca9_100) |
|  | <u>[Critical Accounting Policies](#i0807eeaf7a9a4833bba7d5e1ee648ca9_103)</u> | &nbsp;&nbsp;[27](#i0807eeaf7a9a4833bba7d5e1ee648ca9_103) |
|  | <u>[Recent Accounting Pronouncements](#i0807eeaf7a9a4833bba7d5e1ee648ca9_106)</u> | &nbsp;&nbsp;[27](#i0807eeaf7a9a4833bba7d5e1ee648ca9_106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 3.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_109)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i0807eeaf7a9a4833bba7d5e1ee648ca9_109)</u> | &nbsp;&nbsp;[27](#i0807eeaf7a9a4833bba7d5e1ee648ca9_109) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 4.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_112)</u> | <u>[Controls and Procedures](#i0807eeaf7a9a4833bba7d5e1ee648ca9_112)</u> | &nbsp;&nbsp;[28](#i0807eeaf7a9a4833bba7d5e1ee648ca9_112) |
| <u>[PART II Other Information](#i0807eeaf7a9a4833bba7d5e1ee648ca9_115)</u> | <u>[PART II Other Information](#i0807eeaf7a9a4833bba7d5e1ee648ca9_115)</u> | &nbsp;&nbsp;[29](#i0807eeaf7a9a4833bba7d5e1ee648ca9_115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 1A.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_118)</u> | <u>[Risk Factors](#i0807eeaf7a9a4833bba7d5e1ee648ca9_118)</u> | &nbsp;&nbsp;[29](#i0807eeaf7a9a4833bba7d5e1ee648ca9_118) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 2.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_121)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i0807eeaf7a9a4833bba7d5e1ee648ca9_121)</u> | &nbsp;&nbsp;[29](#i0807eeaf7a9a4833bba7d5e1ee648ca9_121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 5.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_124)</u> | <u>[Other Information](#i0807eeaf7a9a4833bba7d5e1ee648ca9_124)</u> | &nbsp;&nbsp;[29](#i0807eeaf7a9a4833bba7d5e1ee648ca9_124) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Item 6.](#i0807eeaf7a9a4833bba7d5e1ee648ca9_127)</u> | <u>[Exhibits](#i0807eeaf7a9a4833bba7d5e1ee648ca9_127)</u> | &nbsp;&nbsp;[29](#i0807eeaf7a9a4833bba7d5e1ee648ca9_127) |
| <u>[Signature Page](#i0807eeaf7a9a4833bba7d5e1ee648ca9_130)</u> | <u>[Signature Page](#i0807eeaf7a9a4833bba7d5e1ee648ca9_130)</u> | &nbsp;&nbsp;[30](#i0807eeaf7a9a4833bba7d5e1ee648ca9_130) |

---

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**PART I - FINANCIAL INFORMATION (UNAUDITED)**

**ITEM 1. FINANCIAL STATEMENTS**

**LA-Z-BOY INCORPORATED**

**CONSOLIDATED STATEMENT OF INCOME**

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands, except per share data)*** | **7/26/2025** | **7/27/2024** |
| Sales | $492229 | $495532 |
| Cost of sales | 283032 | 282189 |
| &nbsp;&nbsp;&nbsp;Gross profit | 209197 | 213343 |
| Selling, general and administrative expense | 187210 | 180973 |
| &nbsp;&nbsp;&nbsp;Operating income | 21987 | 32370 |
| Interest expense | (120) | (210) |
| Interest income | 3108 | 4424 |
| Other income (expense), net | (585) | (618) |
| &nbsp;&nbsp;&nbsp;Income before income taxes | 24390 | 35966 |
| Income tax expense | 6093 | 9162 |
| &nbsp;&nbsp;&nbsp;Net income | 18297 | 26804 |
| Net income attributable to noncontrolling interests | (93) | (645) |
| &nbsp;&nbsp;&nbsp;Net income attributable to La-Z-Boy Incorporated | $18204 | $26159 |
| Basic weighted average common shares | 41027 | 42052 |
| Basic net income attributable to La-Z-Boy Incorporated per share | $0.44 | $0.62 |
| Diluted weighted average common shares | 41425 | 42564 |
| Diluted net income attributable to La-Z-Boy Incorporated per share | $0.44 | $0.61 |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**LA-Z-BOY INCORPORATED**

**CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME**

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| Net income | $18297 | $26804 |
| Other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;Currency translation adjustment | 1156 | 1533 |
| &nbsp;&nbsp;&nbsp;Net unrealized gain on marketable securities, net of tax | 13 | 113 |
| &nbsp;&nbsp;&nbsp;Net pension amortization, net of tax | 19 | 15 |
| Total other comprehensive income | 1188 | 1661 |
| &nbsp;&nbsp;&nbsp;Total comprehensive income before noncontrolling interests | 19485 | 28465 |
| Comprehensive (income) attributable to noncontrolling interests | (502) | (971) |
| &nbsp;&nbsp;&nbsp;Comprehensive income attributable to La-Z-Boy Incorporated | $18983 | $27494 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**LA-Z-BOY INCORPORATED**

**CONSOLIDATED BALANCE SHEET**

---

| | | |
|:---|:---|:---|
| ***(Unaudited, amounts in thousands, except par value)*** | **7/26/2025** | **4/26/2025** |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and equivalents | $318544 | $328449 |
| &nbsp;&nbsp;Receivables, net of allowance of $5,047 at 7/26/2025 and $5,042 at 4/26/2025 | 131001 | 139533 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 252120 | 255285 |
| &nbsp;&nbsp;&nbsp;Other current assets | 91572 | 82421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 793237 | 805688 |
| Property, plant and equipment, net | 345262 | 339212 |
| Goodwill | 205629 | 205590 |
| Other intangible assets, net | 50991 | 51161 |
| Deferred income taxes – long-term | 6738 | 7349 |
| Right of use lease assets | 461394 | 452848 |
| Other long-term assets, net | 62702 | 60314 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1925953 | $1922162 |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $99725 | $95984 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, short-term | 81470 | 80592 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 235095 | 244215 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 416290 | 420791 |
| Lease liabilities, long-term | 420235 | 410265 |
| Other long-term liabilities | 61406 | 59130 |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;Preferred shares – 5,000 authorized; none issued |  |  |
| &nbsp;&nbsp;Common shares, $1.00 par value – 150,000 authorized; 41,207 outstanding at 7/26/2025 and 41,164 outstanding at 4/26/2025 | 41207 | 41164 |
| &nbsp;&nbsp;&nbsp;Capital in excess of par value | 388546 | 385601 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 589209 | 597432 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (2795) | (3574) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total La-Z-Boy Incorporated shareholders' equity | 1016167 | 1020623 |
| Noncontrolling interests | 11855 | 11353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1028022 | 1031976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $1925953 | $1922162 |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**LA-Z-BOY INCORPORATED**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| Cash flows from operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $18297 | $26804 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain)/loss on disposal and impairment of assets | (92) | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain)/loss on sale of investments | (94) | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 129 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 11329 | 12147 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use lease assets | 20234 | 22722 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation expense | 3420 | 3175 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes | 1075 | 1999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in receivables | 8498 | 17783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in inventories | 3637 | (6912) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in other assets | (4805) | (6668) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in payables | 4653 | 952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in lease liabilities | (20230) | (23306) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in other liabilities | (9759) | 3728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 36292 | 52318 |
| Cash flows from investing activities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from disposals of assets | 170 | 158 |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (18461) | (15620) |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (117) | (2813) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of investments | 216 | 7879 |
| &nbsp;&nbsp;&nbsp;Acquisitions | (627) | (6797) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used for investing activities | (18819) | (17193) |
| Cash flows from financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Payments on finance lease liabilities | (225) | (145) |
| &nbsp;&nbsp;&nbsp;Payments for debt issuance costs | (784) |  |
| &nbsp;&nbsp;&nbsp;Stock issued for stock and employee benefit plans, net of shares withheld for taxes | (5190) | 7874 |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | (12505) | (33673) |
| &nbsp;&nbsp;&nbsp;Dividends paid to shareholders | (9012) | (8371) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used for financing activities | (27716) | (34315) |
| Effect of exchange rate changes on cash and equivalents | 338 | 362 |
| Change in cash and cash equivalents | (9905) | 1172 |
| Cash and cash equivalents at beginning of period | 328449 | 341098 |
| Cash and cash equivalents at end of period | $318544 | $342270 |
| Supplemental disclosure of non-cash investing activities |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures included in payables | $6233 | $2583 |

---

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

------

<u>[**Table of Contents**](#i0807eeaf7a9a4833bba7d5e1ee648ca9_7)</u>

**LA-Z-BOY INCORPORATED**

**CONSOLIDATED STATEMENT OF CHANGES IN EQUITY**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands, except per share data)*** | **Common<br>Shares** | **Capital in Excess of<br>Par Value** | **Retained<br>Earnings** | **Accumulated Other<br>Comprehensive <br>Income (Loss)** | **Non-Controlling<br>Interests** | **Total** |
| **At April 26, 2025** | $41164 | $385601 | $597432 | $(3574) | $11353 | $1031976 |
| &nbsp;&nbsp;&nbsp;Net income |  |  | 18204 |  | 93 | 18297 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  | 779 | 409 | 1188 |
| &nbsp;&nbsp;&nbsp;Stock issued for stock and employee benefit plans, net of cancellations and withholding tax | 343 | 173 | (5706) |  |  | (5190) |
| &nbsp;&nbsp;Repurchases of 300 shares of common stock | (300) | (648) | (11560) |  |  | (12508) |
| &nbsp;&nbsp;&nbsp;Stock option and restricted stock expense |  | 3420 |  |  |  | 3420 |
| &nbsp;&nbsp;Dividends declared and paid ($0.22/share) |  |  | (9012) |  |  | (9012) |
| &nbsp;&nbsp;Dividends declared not paid ($0.22/share) |  |  | (149) |  |  | (149) |
| **At July 26, 2025** | $41207 | $388546 | $589209 | $(2795) | $11855 | $1028022 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands, except per share data)*** | **Common<br>Shares** | **Capital in Excess of<br>Par Value** | **Retained<br>Earnings** | **Accumulated Other<br>Comprehensive Income (Loss)** | **Non-Controlling<br>Interests** | **Total** |
| **At April 27, 2024** | $42440 | $368485 | $598009 | $(5870) | $10296 | $1013360 |
| &nbsp;&nbsp;&nbsp;Net income |  |  | 26159 |  | 645 | 26804 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  | 1335 | 326 | 1661 |
| &nbsp;&nbsp;&nbsp;Stock issued for stock and employee benefit plans, net of cancellations and withholding tax | 508 | 10086 | (2720) |  |  | 7874 |
| &nbsp;&nbsp;Repurchases of 933 shares of common stock | (933) | (10325) | (22658) |  |  | (33916) |
| &nbsp;&nbsp;&nbsp;Stock option and restricted stock expense |  | 3175 |  |  |  | 3175 |
| &nbsp;&nbsp;Dividends declared and paid ($0.20/share) |  |  | (8371) |  |  | (8371) |
| &nbsp;&nbsp;Dividends declared not paid ($0.20/share) |  |  | (111) |  |  | (111) |
| **At July 27, 2024** | $42015 | $371421 | $590308 | $(4535) | $11267 | $1010476 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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**LA-Z-BOY INCORPORATED**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**Note 1: Basis of Presentation**

The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries (collectively, the "Company"). We derived the April 26, 2025 balance sheet from our audited financial statements. We prepared the interim financial information in conformity with generally accepted accounting principles ("US GAAP"), which we applied on a basis consistent with those reflected in our fiscal 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), but the information does not include all of the disclosures required by US GAAP. In management's opinion, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments (except as otherwise disclosed), that are necessary for a fair statement of results for the respective interim periods. The interim results reflected in the accompanying financial statements are not necessarily indicative of the results of operations that will occur for the full fiscal year ending April 25, 2026.

*Accounting Pronouncements Adopted in Fiscal 2026* 

The following table summarizes Accounting Standards Updates ("ASUs"), which were adopted in fiscal 2026, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures.

---

| | | |
|:---|:---|:---|
| **ASU** | **Description** | **Adoption Date** |
| ASU 2023-09 | Income Taxes (Topic 740): Improvements to Income Tax Disclosures | Fiscal 2026 |

---

*Accounting Pronouncements not yet Adopted*

The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures.

---

| | | |
|:---|:---|:---|
| **ASU** | **Description** | **Adoption Date** |
| ASU 2025-05 | Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets | Fiscal 2027 |
| ASU 2025-03 | Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity | Fiscal 2028 |
| ASU 2024-04 | Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments | Fiscal 2027 |
| ASU 2024-03 | Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | Fiscal 2028 |

---

**Note 2: Acquisitions**

We did not complete any acquisitions during the first quarter of fiscal 2026.

***Prior Year Acquisitions***

The Retail acquisition completed in the first quarter of fiscal 2025 reflects a core component of our strategic priorities, which is to grow our company-owned retail business and leverage our integrated retail model (where we earn a combined profit on both the wholesale and retail sales) in suitable geographic markets, alongside the existing La-Z-Boy Furniture Galleries<sup>®</sup> network.

Prior to the Retail acquisition, we licensed to the counterparty the exclusive right to own and operate the La-Z-Boy Furniture Galleries<sup>®</sup> store (and to use the associated trademarks and trade name) in its market, and we reacquired these rights when we consummated the transaction. These required rights are indefinite-lived because our retailer agreements are perpetual agreements that have no specific expiration date and no renewal options. The effective settlement date of this arrangement resulted in no settlement gain or loss as the contractual terms were at market. For federal income tax purposes, we amortize and deduct the indefinite-lived intangible assets and goodwill over 15 years.

The acquisition below was not significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented.

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*Davenport, Iowa Acquisition*

On July 22, 2024, we completed our acquisition of the Davenport, Iowa business that operates one independently owned La-Z-Boy Furniture Galleries<sup>®</sup> store for $7.4 million, inclusive of customary adjustments. We paid total cash of $6.9 million during the first and second quarters of fiscal 2025 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments. As part of the acquisition, we recorded an indefinite-lived intangible asset of $1.7 million related to the reacquired rights described above. We also recognized $5.1 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies.

**Note 3: Inventories**

A summary of inventories is as follows:

---

| | | |
|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **7/26/2025** | **4/26/2025** |
| Raw materials | $128271 | $128823 |
| Work in process | 18568 | 19280 |
| Finished goods | 151895 | 153796 |
| &nbsp;&nbsp;&nbsp;FIFO inventories | 298734 | 301899 |
| &nbsp;&nbsp;&nbsp;Excess of FIFO over LIFO | (46614) | (46614) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories | $252120 | $255285 |

---

**Note 4: Goodwill and Other Intangible Assets**

We have goodwill on our consolidated balance sheet as follows:

---

| | | |
|:---|:---|:---|
| **Reportable Segment/Unit** | **Reporting Unit** | **Related Acquisition** |
| Wholesale Segment | United Kingdom (1) | Wholesale business in the United Kingdom and Ireland |
| Wholesale Segment | United Kingdom (1) | La-Z-Boy United Kingdom Manufacturing (Furnico) |
| Retail Segment | Retail | La-Z-Boy Furniture Galleries<sup>®</sup> stores |
| Corporate and Other | Joybird | Joybird |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The United Kingdom reporting unit is fully impaired and has no carrying value as of July 26, 2025.

The following table summarizes changes in the carrying amount of our goodwill by reportable segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **Wholesale<br>Segment** | **Retail<br>Segment** | **Corporate<br>and Other** | **Total<br>Goodwill** |
| Balance at April 26, 2025 (1) | $— | $150144 | $55446 | $205590 |
| &nbsp;&nbsp;&nbsp;Translation adjustment |  | 39 |  | 39 |
| Balance at July 26, 2025 (1) | $— | $150183 | $55446 | $205629 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes $26.9 million and $20.6 million of accumulated impairment losses in Corporate and Other and the Wholesale segment, respectively.

We have intangible assets on our consolidated balance sheet as follows:

---

| | | |
|:---|:---|:---|
| **Reportable Segment** | **Intangible Asset** | **Useful Life** |
| Wholesale Segment | American Drew<sup>®</sup> trade name | Indefinite-lived |
| Retail Segment | Reacquired rights to own and operate La-Z-Boy Furniture Galleries<sup>®</sup> stores | Indefinite-lived |
| Corporate and Other | Joybird<sup>®</sup> trade name | Amortizable over eight-year useful life |

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The following summarizes changes in our intangible assets:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **Indefinite-<br>Lived Trade<br>Names** | **Finite-Lived<br>Trade Name** | **Indefinite-<br>Lived<br>Reacquired<br>Rights** | **Total<br>Intangible<br>Assets** |
| Balance at April 26, 2025 | $1155 | $998 | $49008 | $51161 |
| &nbsp;&nbsp;&nbsp;Amortization |  | (200) |  | (200) |
| &nbsp;&nbsp;&nbsp;Translation adjustment |  |  | 30 | 30 |
| Balance at July 26, 2025 | $1155 | $798 | $49038 | $50991 |

---

We test indefinite-lived intangibles and goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that an asset might be impaired. We test amortizable intangible assets for impairment if events or changes in circumstances indicate that the assets might be impaired.

**Note 5: Investments**

We have current and long-term investments intended to enhance returns on our cash as well as to fund future obligations of certain retirement plans. Our short-term investments are included in other current assets and our long-term investments are included in other long-term assets on our consolidated balance sheet.

The following summarizes our investments:

---

| | | |
|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **7/26/2025** | **4/26/2025** |
| Short-term investments: |  |  |
| &nbsp;&nbsp;&nbsp;Marketable securities | $46 | $10 |
| &nbsp;&nbsp;&nbsp;Held-to-maturity investments | 2680 | 2607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total short-term investments | 2726 | 2617 |
| Long-term investments: |  |  |
| &nbsp;&nbsp;&nbsp;Marketable securities | 12630 | 12284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | $15356 | $14901 |
| Investments to enhance returns on cash | $2680 | $2607 |
| Investments to fund compensation/retirement plans | 12676 | 12294 |
| &nbsp;&nbsp;&nbsp;Total investments | $15356 | $14901 |

---

The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **7/26/2025** | **7/26/2025** | **7/26/2025** | **4/26/2025** | **4/26/2025** | **4/26/2025** |
|<br>***(Unaudited, amounts in thousands)*** | **Gross<br>Unrealized <br>Gains** | **Gross<br>Unrealized <br>Losses** | **Fair Value** | **Gross<br>Unrealized <br>Gains** | **Gross<br>Unrealized <br>Losses** | **Fair Value** |
| Equity securities | $1055 | $— | $3830 | $618 | $— | $3489 |
| Fixed income | 135 | (52) | 6380 | 114 | (50) | 6335 |
| Other | 303 | (2) | 5146 | 322 | (15) | 5077 |
| &nbsp;&nbsp;&nbsp;Total securities | $1493 | $(54) | $15356 | $1054 | $(65) | $14901 |

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The following table summarizes sales of marketable securities:

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| Proceeds from sales | $216 | $7879 |
| Gross realized gains | 94 | 115 |
| Gross realized losses |  | (35) |

---

As of July 26, 2025, we held $6.4 million of fixed income marketable securities, classified as available-for-sale securities, all of which do not have a single contractual maturity date.

**Note 6: Debt**

On October 15, 2021, we entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, the other agents and lenders named therein and the other parties thereto (as amended prior to July 1, 2025, the "Credit Agreement"). The Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of $200 million, which includes a $50 million letter of credit sub-limit (the "Credit Facility").

On July 1, 2025, we entered into an amendment to the Credit Agreement (the "Credit Agreement Amendment"). The Credit Agreement Amendment, among other things, (i) extended the maturity date of the Credit Facility from October 15, 2026 to July 1, 2030, (ii) increased the accordion basket for additional revolving commitments and/or incremental term loans from $100 million to $125 million, (iii) removed the secured overnight financing rate ("SOFR") credit spread adjustment, and (iv) decreased the consolidated fixed charge coverage ratio required to be satisfied under the Company's financial covenant.

Borrowings under the Credit Facility may be used by the Company for general corporate purposes. The Credit Facility will mature on July 1, 2030, and provides us the ability to extend the maturity date for two additional one-year periods, subject to the satisfaction of customary conditions.

The Credit Facility contains certain restrictive loan covenants, including, among others, financial covenants requiring a maximum consolidated net lease adjusted leverage ratio and a minimum consolidated fixed charge coverage ratio, as well as customary covenants limiting our ability to incur indebtedness, grant liens, make acquisitions, merge or consolidate, and dispose of certain assets.

As of July 26, 2025, we have no borrowings outstanding under the Credit Facility and we were in compliance with our financial covenants under the Credit Facility.

**Note 7: Product Warranties**

We accrue an estimated liability for product warranties when we recognize revenue on the sale of warrantied products. We estimate future warranty claims on product sales based on sales volume and our historical claims experience and periodically adjust the provision to reflect changes in actual experience. We incorporate repair costs into our liability estimates, including materials, labor and overhead amounts necessary to perform repairs, and any costs associated with delivering repaired product to our customers. Over 90% of our warranty liability relates to our Wholesale reportable segment, as we generally warrant our products against defects for one to three years on fabric and leather, from one to five years on cushions and padding, and provide a limited lifetime warranty on certain mechanisms and frames, unless otherwise noted in the warranty. Additionally, our Wholesale segment warranties cover labor costs relating to our parts for one year. We provide a limited lifetime warranty against defects on a majority of the Joybird products, which are a part of our Corporate and Other results. For all our manufacturer warranties, the warranty period begins when the consumer receives our product. We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known.

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A reconciliation of the changes in our product warranty liability is as follows:

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| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025 (1)** | **7/27/2024** |
| Balance as of the beginning of the period | $29940 | $28909 |
| &nbsp;&nbsp;&nbsp;Accruals during the period | 6576 | 8900 |
| &nbsp;&nbsp;&nbsp;Settlements during the period | (7406) | (8331) |
| Balance as of the end of the period | $29110 | $29478 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)$21.2 million and $22.4 million is recorded in accrued expenses and other current liabilities as of July 26, 2025, and April 26, 2025, respectively, while the remainder is included in other long-term liabilities.

We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods.

**Note 8: Stock-Based Compensation**

The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income:

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| Equity-based awards expense | $3420 | $3175 |
| Liability-based awards expense (1) | (14) | 161 |
| &nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $3406 | $3336 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes stock appreciation rights, deferred stock units issued to Directors, restricted stock units, and performance-based units. Compensation expense for these awards is based on the market price of our common stock on the grant date and is remeasured each reporting period based on the market value of our common shares on the last day of the reported period.

*Restricted Stock*. During the first quarter of fiscal 2026, we granted 263,509 shares of restricted stock units to employees and we also have restricted stock awards outstanding from previous grants. We issue restricted stock at no cost to the employees and account for restricted stock awards as equity-based awards because when they vest, they will be settled in common shares. We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards. Restricted stock awards vest at 25% per year, beginning one year from the grant date for a term of four years, with continued vesting upon retirement. We accelerate the expense for restricted stock granted to retirement-eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur. The weighted average fair value of the restricted stock that was awarded in the first quarter of fiscal 2026 was $38.24 per share, the market value of our common shares on the date of grant.

*Performance Shares.* During the first quarter of fiscal 2026, we granted 182,671 performance-based shares, and we also have performance-based share awards outstanding from previous grants. Payouts of these grants depend on our financial performance (50%) and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other public companies (50%). The performance share opportunity ranges from 50% of the employee's target award if minimum performance requirements are met to a maximum of 200% of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

We account for performance-based shares as equity-based awards because when they vest, they will be settled in common shares. In the event of an employee's termination during the vesting period, the potential right to earn shares under this program is generally forfeited and we have elected to recognize forfeitures as an adjustment to compensation expense in the same period in which the forfeitures occur. For shares that vest based on our results relative to the performance goals, we expense as compensation cost the fair value of the shares as of the day we granted the awards recognized over the performance period, taking into account the probability that we will satisfy the performance goals. The fair value of each share of the awards we granted in fiscal 2026 that vest based on attaining performance goals was $35.62, the market value of our common shares on the date we granted the awards less the dividends we expect to pay before the shares vest. For shares that vest based on market conditions, we use a Monte Carlo valuation model to estimate each share's fair value as of the date of grant. The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine our

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expected performance ranking relative to our peer group. For shares that vest based on market conditions, we expense compensation cost over the vesting period regardless of whether the market condition is ultimately satisfied. Based on the Monte Carlo valuation model, the fair value as of the grant date of the fiscal 2026 grant of shares that vest based on market conditions was $52.91.

*Stock Options.* We did not grant stock options to employees during the first quarter of fiscal 2026, but we have stock options outstanding from grants from prior years. We account for stock options as equity-based awards because when they are exercised, they will be settled in common shares. We recognize compensation expense for stock options over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards. The vesting period for our stock options ranges from one to four years, with accelerated vesting upon retirement. The vesting date for retirement-eligible employees is the later of the date they meet the criteria for retirement or ten months after the grant date. We accelerate the expense for options granted to retirement eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur. Granted options outstanding under the former long-term equity award plan remain in effect and have a term of 10 years. We estimated the fair value of the employee stock options granted in prior years at their respective grant date using the Black-Scholes option-pricing model, which requires management to make certain assumptions.

**Note 9: Accumulated Other Comprehensive Loss**

Activity in accumulated other comprehensive income (loss) for the quarters ended July 26, 2025, and July 27, 2024, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **Translation adjustment** | **Unrealized gain (loss) on marketable securities** | **Net pension amortization and net actuarial gain (loss)** | **Accumulated other comprehensive income (loss)** |
| Balance at April 26, 2025 | $(1507) | $337 | $(2404) | $(3574) |
| &nbsp;&nbsp;&nbsp;Changes before reclassifications | 747 | 19 |  | 766 |
| &nbsp;&nbsp;&nbsp;Amounts reclassified to net income |  | (1) | 25 | 24 |
| &nbsp;&nbsp;&nbsp;Tax effect |  | (5) | (6) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income attributable to La-Z-Boy Incorporated | 747 | 13 | 19 | 779 |
| Balance at July 26, 2025 | $(760) | $350 | $(2385) | $(2795) |
| Balance at April 27, 2024 | $(3804) | $246 | $(2312) | $(5870) |
| &nbsp;&nbsp;&nbsp;Changes before reclassifications | 1207 | 150 |  | 1357 |
| &nbsp;&nbsp;&nbsp;Amounts reclassified to net income |  |  | 20 | 20 |
| &nbsp;&nbsp;&nbsp;Tax effect |  | (37) | (5) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income attributable to La-Z-Boy Incorporated | 1207 | 113 | 15 | 1335 |
| Balance at July 27, 2024 | $(2597) | $359 | $(2297) | $(4535) |

---

We reclassified both the unrealized gain (loss) on marketable securities and the net pension amortization from accumulated other comprehensive loss to net income through other income (expense), net.

The components of noncontrolling interest were as follows:

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| Balance as of the beginning of the period | $11353 | $10296 |
| &nbsp;&nbsp;&nbsp;Net income | 93 | 645 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income | 409 | 326 |
| Balance as of the end of the period | $11855 | $11267 |

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**Note 10: Revenue Recognition**

Our revenue is primarily derived from product sales. We report product sales net of discounts and recognize them when control (rights and obligations associated with the product) passes to the customer. For sales to furniture retailers or distributors, control typically transfers when we ship the product. In cases where we sell directly to the end consumer, control of the product is generally transferred upon delivery.

For shipping and handling activities, we have elected to apply the accounting policy election permitted in ASC 606-10-25-18B, which allows an entity to account for shipping and handling activities as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. We expense shipping and handling costs at the time we recognize revenue in accordance with this election.

For sales tax, we have elected to apply the accounting policy election permitted in ASC 606-10-32-2A, which allows an entity to exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows us to present revenue net of these certain types of taxes.

We have elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration.

The following table presents our revenue disaggregated by product category and by segment or unit:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** |
|<br>***(Unaudited, amounts in thousands)*** | **Wholesale** | **Retail** | **Corporate<br>and Other** | **Total** | **Wholesale** | **Retail** | **Corporate<br>and Other** | **Total** |
| Upholstered Furniture | $272356 | $170867 | $23361 | $466584 | $281180 | $166875 | $27876 | $475931 |
| Casegoods Furniture | 17774 | 10954 | 1379 | 30107 | 16088 | 11375 | 3119 | 30582 |
| Delivery | 37347 | 7503 | 1896 | 46746 | 38513 | 7382 | 2068 | 47963 |
| Other (1) | 25480 | 17826 | 4599 | 47905 | 15119 | 16738 | 5645 | 37502 |
| &nbsp;&nbsp;&nbsp;Total | $352957 | $207150 | $31235 | $591342 | $350900 | $202370 | $38708 | $591978 |
| Eliminations |  |  |  | (99113) |  |  |  | (96446) |
| Consolidated Net Sales |  |  |  | $492229 |  |  |  | $495532 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Primarily includes surcharges, revenue for advertising, royalties, parts, accessories, after-treatment products, rebates and other sales incentives.

**Upholstered Furniture** - Includes revenue for upholstered furniture, such as recliners, sofas, loveseats, chairs, sectionals, modulars, and ottomans. This revenue includes sales to La-Z-Boy Furniture Galleries<sup>®</sup> stores (including company-owned stores), operators of La-Z-Boy Comfort Studio<sup>®</sup> and branded space locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer.

**Casegoods Furniture** - Includes revenue for casegoods furniture typically found in a bedroom, such as beds, chests, dressers, nightstands and benches; furniture typically found in the dining room, such as dining tables, storage units, and stools; and furniture typically found throughout the home, such as cocktail tables, chairsides, sofa tables, end tables, and entertainment centers. This revenue includes sales to La-Z-Boy Furniture Galleries<sup>®</sup> stores (including company-owned stores), independent retailers, and the end consumer.

*Contract Assets and Liabilities.* We receive customer deposits from end consumers before we recognize revenue and in some cases, we have the unconditional right to collect the remaining portion of the order price before we fulfill our performance obligation, resulting in a contract asset and a corresponding deferred revenue liability. In our consolidated balance sheet, customer deposits and deferred revenue (collectively, the "contract liabilities") are reported in accrued expenses and other current liabilities while contract assets are reported as other current assets.

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The following table presents our contract assets and liabilities:

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| | | |
|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **7/26/2025** | **4/26/2025** |
| Contract assets | $35327 | $32580 |
| Customer deposits | $82677 | $72894 |
| Deferred revenue | 35327 | 32580 |
| &nbsp;&nbsp;Total contract liabilities (1) | $118004 | $105474 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)During the quarter ended July 26, 2025, we recognized revenue of $94.6 million related to our contract liability balance at April 26, 2025.

**Note 11: Segment Information**

We report segment information consistent with the way our chief operating decision maker, (the "CODM"), our Board Chair, President and Chief Executive Officer, evaluates the operating results and performance of the Company. Our reportable operating segments include the Wholesale segment and the Retail segment.

*Wholesale Segment*. Our Wholesale segment consists primarily of four operating segments: La-Z-Boy, our largest operating segment, our England subsidiary, our casegoods operating segment that sells furniture under three brands (American Drew<sup>®</sup>, Hammary<sup>®</sup>, and Kincaid<sup>®</sup>), and our international operating segment, which includes our international La-Z-Boy wholesale and manufacturing businesses. We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments. Our Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas and imports casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces. The Wholesale segment sells directly to La-Z-Boy Furniture Galleries<sup>®</sup> stores, operators of La-Z-Boy Comfort Studio<sup>®</sup> and branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

*Retail Segment*. Our Retail segment consists of one operating segment comprised of our 205 company-owned La-Z-Boy Furniture Galleries<sup>®</sup> stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other home furnishings accessories, to end consumers through these stores.

*Corporate and Other*. Corporate and Other includes the shared costs for corporate functions, including human resources, information technology, finance and accounting, and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy<sup>®</sup> brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments, including our global trading company in Hong Kong and Joybird, an omni-channel retailer that manufactures upholstered furniture, such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture, such as occasional tables and other accessories. Joybird sells to the end consumer online through its website, www.joybird.com, and through small-format stores in key markets. None of the operating segments included in Corporate and Other meet the requirements of reportable segments.

We use operating income to evaluate segment performance and to allocate resources. Segment operating income is based on profit or loss from operations before interest expense, interest income, other income (expense), net and income taxes. The CODM assesses performance by regularly reviewing each segment's significant expense categories which include cost of sales, selling, general and administrative ("SG&A") expenses, and goodwill impairment, if applicable.

The accounting policies of the operating segments are the same as those described in our Annual Report on form 10-K for the fiscal year ended April 26, 2025. We account for intersegment revenue transactions between our segments consistent with independent third-party transactions, that is, at current market prices. As a result, the manufacturing profit related to sales to our Retail segment is included within the Wholesale segment. Operating income realized on intersegment revenue transactions is therefore generally consistent with the operating income realized on our revenue from independent third-party transactions.

Identifiable assets are cash and equivalents, accounts receivable, net inventories, net property, plant and equipment, right-of-use lease assets, goodwill and other intangible assets. Our unallocated assets include deferred income taxes, corporate assets (including a portion of cash and equivalents), and various other assets. Asset information is regularly reviewed by the CODM at the consolidated level and segment-level asset information is not used for purposes of making decisions, assessing financial performance, or allocating resources.

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The following table presents sales and operating income (loss) by segment:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** | **Quarter Ended July 26, 2025** |
|<br>***(Unaudited, amounts in thousands)*** | **Wholesale** | **Retail** | **Corporate & Other** | **Intersegment Eliminations** | **Consolidated** |
| Sales to external customers | $255345 | $207150 | $29734 | $— | $492229 |
| Intersegment sales | 97612 |  | 1501 | (99113) |  |
| &nbsp;&nbsp;Total sales | 352957 | 207150 | 31235 | (99113) | 492229 |
| Cost of sales | 264042 | 93463 | 12534 | (87007) | 283032 |
| &nbsp;&nbsp;Gross profit | 88915 | 113687 | 18701 | (12106) | 209197 |
| SG&A expenses | 63740 | 100567 | 35009 | (12106) | 187210 |
| &nbsp;&nbsp;Operating income (loss) | $25175 | $13120 | $(16308) | $— | $21987 |
| Interest expense |  |  |  |  | (120) |
| Interest income |  |  |  |  | 3108 |
| Other income (expense), net |  |  |  |  | (585) |
| &nbsp;&nbsp;Income before income taxes |  |  |  |  | $24390 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** | **Quarter Ended July 27, 2024** |
|<br>***(Unaudited, amounts in thousands)*** | **Wholesale** | **Retail** | **Corporate & Other** | **Intersegment Eliminations** | **Consolidated** |
| Sales to external customers | $256020 | $202370 | $37142 | $— | $495532 |
| Intersegment sales | 94880 |  | 1566 | (96446) |  |
| &nbsp;&nbsp;Total sales | 350900 | 202370 | 38708 | (96446) | 495532 |
| Cost of sales | 260293 | 90750 | 15919 | (84773) | 282189 |
| &nbsp;&nbsp;Gross profit | 90607 | 111620 | 22789 | (11673) | 213343 |
| SG&A expenses | 66608 | 90971 | 35067 | (11673) | 180973 |
| &nbsp;&nbsp;Operating income (loss) | $23999 | $20649 | $(12278) | $— | $32370 |
| Interest expense |  |  |  |  | (210) |
| Interest income |  |  |  |  | 4424 |
| Other income (expense), net |  |  |  |  | (618) |
| &nbsp;&nbsp;Income before income taxes |  |  |  |  | $35966 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/26/2025** | **7/27/2024** | **7/27/2024** |
| **Depreciation and Amortization** | | | | |
| &nbsp;&nbsp;&nbsp;Wholesale segment | $| 6615 | $| 6257 |
| &nbsp;&nbsp;&nbsp;Retail segment | 3193 | 3193 | 2630 | 2630 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | 1521 | 1521 | 3260 | 3260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated depreciation and amortization | $| 11329 | $| 12147 |
| **Capital Expenditures** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wholesale segment | $| 8421 | $| 8022 |
| &nbsp;&nbsp;&nbsp;Retail segment | 8116 | 8116 | 6468 | 6468 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | 1924 | 1924 | 1130 | 1130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated capital expenditures | $| 18461 | $| 15620 |
| **Sales by Country (1)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States | 91% | 91% | 90% | 90% |
| &nbsp;&nbsp;&nbsp;Canada | 5% | 5% | 6% | 6% |
| &nbsp;&nbsp;&nbsp;Other | 4% | 4% | 4% | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 100% | 100% | 100% | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Sales are attributed to countries on the basis of the customer's location.

---

| | | |
|:---|:---|:---|
| ***(Unaudited, amounts in thousands)*** | **7/26/2025** | **4/26/2025** |
| **Assets** | | |
| &nbsp;&nbsp;&nbsp;Wholesale segment | $664749 | $662987 |
| &nbsp;&nbsp;&nbsp;Retail segment | 728274 | 727178 |
| &nbsp;&nbsp;&nbsp;Unallocated assets | 532930 | 531997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated assets | $1925953 | $1922162 |
| **Long-Lived Assets by Geographic Location** |  |  |
| &nbsp;&nbsp;&nbsp;Domestic | $992188 | $976220 |
| &nbsp;&nbsp;&nbsp;International | 71088 | 72591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated long-lived assets | $1063276 | $1048811 |

---

**Note 12: Income Taxes**

Our effective tax rate was 25.0% for the quarter ended July 26, 2025 compared with 25.5% for the quarter ended July 27, 2024. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA"), was signed into law, making several provisions of the Tax Cuts and Jobs Act permanent. Under ASC 740, Income Taxes, the effects of changes in tax laws must be recognized in the period of enactment. The Company is currently evaluating the potential impact of OBBBA, but based on a preliminary assessment, the provisions of the new law are not expected to have a material impact on the Company's consolidated financial statements.

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**Note 13: Earnings per Share**

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands, except per share data)*** | **7/26/2025** | **7/27/2024** |
| **Numerator (basic and diluted):** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income available to common Shareholders | $18204 | $26159 |
| **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;Basic weighted average common shares outstanding | 41027 | 42052 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent common shares | 246 | 351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option dilution | 152 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted average common shares outstanding | 41425 | 42564 |
| **Earnings per Share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.44 | $0.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted (1) | $0.44 | $0.61 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Diluted earnings per share was computed using the treasury stock method.

The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We exclude the effect of options from our diluted share calculation when the weighted average exercise price of the options is higher than the average market price, since including the options' effect would be anti-dilutive. For the quarter ended July 26, 2025, we did not exclude any outstanding options from the diluted share calculation. For the quarter ended July 27, 2024, we excluded options to purchase 0.2 million shares from the diluted share calculation.

**Note 14: Fair Value Measurements**

Accounting standards require that we put financial assets and liabilities into one of three categories based on the inputs we use to value them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Financial assets and liabilities, the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — Financial assets and liabilities, the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — Financial assets and liabilities, the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

Accounting standards require that in making fair value measurements, we use observable market data when available. When inputs used to measure fair value fall within different levels of the hierarchy, we categorize the fair value measurement as being in the lowest level that is significant to the measurement. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur.

In addition to assets and liabilities that we record at fair value on a recurring basis, we are required to record assets and liabilities at fair value on a non-recurring basis. We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 26, 2025 and April 26, 2025. There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| **At July 26, 2025**<br>***(Unaudited, amounts in thousands)*** | **Level 1** | **Level 2** | **Level 3** | **NAV(1)** | **Total** |
| **Assets** | | | | | |
| &nbsp;&nbsp;&nbsp;Marketable securities | $— | $2465 | $— | $10211 | $12676 |
| &nbsp;&nbsp;&nbsp;Held-to-maturity investments | 2680 |  |  |  | 2680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2680 | $2465 | $— | $10211 | $15356 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| **At April 26, 2025**<br>***(Unaudited, amounts in thousands)*** | **Level 1** | **Level 2** | **Level 3** | **NAV(1)** | **Total** |
| **Assets** | | | | | |
| &nbsp;&nbsp;&nbsp;Marketable securities | $— | $2470 | $— | $9824 | $12294 |
| &nbsp;&nbsp;&nbsp;Held-to-maturity investments | 2607 |  |  |  | 2607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2607 | $2470 | $— | $9824 | $14901 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology.

At July 26, 2025 and April 26, 2025, we held marketable securities to fund future obligations of certain retirement plans.

The fair value measurements for our Level 1 and Level 2 securities are based on quoted prices in active markets, as well as through broker quotes and independent valuation providers, multiplied by the number of shares owned exclusive of any transaction costs.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

We have prepared this Management's Discussion and Analysis as an aid to understanding our financial results. It should be read in conjunction with the accompanying Consolidated Financial Statements and related Notes to Consolidated Financial Statements. After a cautionary note regarding forward-looking statements, we begin with an introduction to our key businesses and then provide discussions of our results of operations, liquidity and capital resources, and critical accounting policies.

**Cautionary Note Regarding Forward-Looking Statements**

La-Z-Boy Incorporated and its subsidiaries (individually and collectively, "we," "our," "us," "La-Z-Boy" or the "Company") make "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, acquisitions, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements may include words such as "aim," "anticipates," "believes," "continues," "estimates," "expects," "feels," "forecasts," "hopes," "intends," "likely," "non-recurring," "one-time," "outlook," "plans," "projects," "seeks," "short-term," "target," "unusual," or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," or "may." A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on forward-looking statements, which speak to our views only as of the date of this report. These forward-looking statements are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial performance.

Our actual future results and trends may differ materially from those we anticipate depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Annual Report for the fiscal year ended April 26, 2025, under Item 1A, "Risk Factors" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our other filings with the Securities and Exchange Commission ("SEC"). Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in our Annual Report for the fiscal year ended April 26, 2025 or any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

**Introduction**

***Our Business***

We are the leading global producer of reclining chairs and one of the largest manufacturers/distributors of residential furniture in the United States*.* The La-Z-Boy Furniture Galleries<sup>®</sup> stores retail network is the third largest retailer of single-branded furniture in the United States*.* We manufacture, market, import, export, distribute and retail upholstery furniture products under the La-Z-Boy<sup>®</sup>, England, Kincaid<sup>®</sup>, and Joybird<sup>®</sup> tradenames. In addition, we import, distribute and retail accessories and casegoods (wood) furniture products under the Kincaid<sup>®</sup>, American Drew<sup>®</sup>, Hammary<sup>®</sup>, and Joybird<sup>®</sup> tradenames.

As of July 26, 2025, our supply chain operations included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Five major manufacturing locations and 14 distribution centers in the United States and three facilities in Mexico to support our speed-to-market and customization strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A logistics company that distributes a portion of our products in the United States

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* An upholstery manufacturing business in the United Kingdom and a wholesale sales office that is responsible for distribution of our product in the United Kingdom and Ireland

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A global trading company in Hong Kong that helps us manage our Asian supply chain by establishing and maintaining relationships with our Asian suppliers, as well as identifying efficiencies and savings opportunities

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We also participate in two consolidated joint ventures in Thailand that support our international businesses: one that operates a manufacturing facility and another that operates a wholesale sales office. Additionally, we have contracts with several suppliers in Asia to produce products that support our pure import model for casegoods.

We sell our products through multiple channels: to furniture retailers or distributors in the United States, Canada, and approximately 50 other countries, including the United Kingdom, China, Australia, South Korea and New Zealand, directly to consumers through retail stores that we own and operate, and through our websites, www.la-z-boy.com and www.joybird.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The centerpiece of our retail distribution strategy is our network of 368 La-Z-Boy Furniture Galleries<sup>®</sup> stores, over 500 La-Z-Boy Comfort Studio<sup>®</sup> locations, and over 750 La-Z-Boy branded space locations, each dedicated to marketing our La-Z-Boy branded products. We consider this dedicated space to be "proprietary."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ La-Z-Boy Furniture Galleries<sup>®</sup> stores help consumers furnish their homes by combining the style, comfort, and quality of La-Z-Boy furniture with our available design services. We own 205 of the La-Z-Boy Furniture Galleries<sup>®</sup> stores, while the remainder are independently owned and operated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ La-Z-Boy Comfort Studio<sup>®</sup> locations are defined spaces within larger independent retailers that are dedicated to displaying and selling La-Z-Boy branded products, while La-Z-Boy branded space locations display a curated selection of La-Z-Boy branded products within larger independent dealers. All La-Z-Boy Comfort Studio<sup>®</sup> locations and La-Z-Boy branded space locations are independently owned and operated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ In total, we have approximately 7.7 million square feet of proprietary floor space dedicated to selling La-Z-Boy branded products in North America within our La-Z-Boy Furniture Galleries<sup>®</sup> stores and La-Z-Boy Comfort Studio<sup>®</sup> locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We also have approximately 2.6 million square feet of floor space outside of North America dedicated to selling La-Z-Boy branded products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our other brands, England, American Drew, Hammary, and Kincaid enjoy distribution through many of the same outlets, with over half of Hammary's sales originating through the La-Z-Boy Furniture Galleries<sup>®</sup> store network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Kincaid and England have their own dedicated proprietary in-store programs with 675 outlets and approximately 2.0 million square feet of proprietary floor space.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Joybird sells product online and has 13 small-format stores in key markets.

***Century Vision Strategy***

Our goal is to deliver value to our shareholders over the long term by executing our Century Vision, our strategic plan for growth to our centennial year in 2027, in which we aim to grow sales and market share and strengthen our operating margins. The foundation of our strategic plan is to drive disproportionate growth of our two consumer brands, La-Z-Boy and Joybird, by delivering the transformational power of comfort with a consumer-first approach. We plan to drive growth in the following ways:

*Expanding the La-Z-Boy brand reach*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Leveraging our connection to comfort and reinvigorating our brand with a consumer focus and expanded omni-channel presence.* Our strategic initiatives to leverage and reinvigorate our iconic La-Z-Boy brand center on a renewed focus on leveraging the compelling La-Z-Boy comfort message, accelerating our omni-channel offering, and identifying additional consumer-base growth opportunities. We leverage our consumer insights to develop and deliver on-trend upholstered furniture, particularly in the motion and reclining categories. We launched our brand campaign and marketing platform in fiscal 2024, *Long Live the Lazy*, with compelling, consumer inspired, messaging designed to increase recognition and consideration of the brand. We expect that this messaging will enhance the appeal of our brand with a broader consumer base. Further, our goal is to connect with consumers along their purchase journey through multiple means, whether online or in person. We are driving change throughout our digital platforms to improve the user experience, with a specific focus on the ease with which customers browse through our broad product assortment, customize products to their liking, find stores to make a purchase, or purchase at www.la-z-boy.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Growing our La-Z-Boy Furniture Galleries*<sup>®</sup> *store network*. We expect our strategic initiatives in this area to generate growth in our Retail segment through an increased company-owned store count and in our Wholesale segment as our proprietary distribution network expands. We are not only focused on growing the number of locations, but also on upgrading existing store locations to our new concept designs. We are prioritizing growth of our company-owned

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Retail business by opportunistically acquiring existing La-Z-Boy Furniture Galleries<sup>®</sup> stores and opening new La-Z-Boy Furniture Galleries<sup>®</sup> stores where we see opportunity for growth, or where we believe we have opportunities for further market penetration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Expanding the reach of our wholesale distribution channels.* Consumers experience the La-Z-Boy brand in many channels including the La-Z-Boy Furniture Galleries<sup>®</sup> store network, the La-Z-Boy Comfort Studio<sup>®</sup> locations, our store-within-a-store format, and La-Z-Boy branded space locations. While consumers increasingly interact with the brand digitally, our consumers also demonstrate an affinity for visiting our stores to shop, allowing us to frequently deliver the flagship La-Z-Boy Furniture Galleries<sup>®</sup> store, La-Z-Boy Comfort Studio<sup>®</sup>, or La-Z-Boy branded space experience and provide design services. In addition to our branded distribution channels, approximately 1,900 other dealers sell La-Z-Boy products, which include some of the best-known names in the industry, providing us the benefit of multi-channel distribution. We believe there is significant growth potential for our consumer brands through these retail channels.

*Profitably growing the Joybird brand*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Profitably growing the Joybird brand with a digital-first consumer experience.* Joybird is a leading omni-channel, direct to consumer retailer and manufacturer of upholstered furniture. We believe that Joybird is a brand with significant potential and our strategic initiatives in this area focus on fueling profitable growth through the opening of additional small-format stores in key markets, an increase in digital marketing spend to drive awareness and customer acquisition, ongoing investments in technology, and an expansion of product assortment.

*Enhancing our enterprise capabilities*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Enhancing our enterprise capabilities to support the growth of our consumer brands and enable potential acquisitions for growth.* Key to successful growth is ensuring we have the capabilities to support that growth, including an agile supply chain, modern technology for consumers and employees, and by delivering a human-centered employee experience. Through our Century Vision strategic plan, we have several initiatives focused on enhancing these capabilities with a consumer-first focus.

***Reportable Segments***

Our reportable operating segments include the Retail segment and the Wholesale segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Retail Segment*. Our Retail segment consists of one operating segment comprised of our 205 company-owned La-Z-Boy Furniture Galleries<sup>®</sup> stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other home furnishings accessories, to end consumers through these stores.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Wholesale Segment*. Our Wholesale segment consists primarily of four operating segments: La-Z-Boy, our largest operating segment, our England subsidiary, our casegoods operating segment that sells furniture under three brands (American Drew<sup>®</sup>, Hammary<sup>®</sup>, and Kincaid<sup>®</sup>), and our international operating segment, which includes our international La-Z-Boy wholesale and manufacturing businesses. We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments. Our Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas and imports casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces. The Wholesale segment sells directly to La-Z-Boy Furniture Galleries<sup>®</sup> stores, operators of La-Z-Boy Comfort Studio<sup>®</sup> and branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Corporate and Other*. Corporate and Other includes the shared costs for corporate functions, including human resources, information technology, finance and accounting, and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy<sup>®</sup> brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments, including our global trading company in Hong Kong and Joybird, an omni-channel retailer that manufactures upholstered furniture, such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture, such as occasional tables and other accessories. Joybird sells to the end consumer online through its website, www.joybird.com, and through small-format stores in key markets. None of the operating segments included in Corporate and Other meet the requirements of reportable segments.

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**Results of Operations**

**Fiscal 2026 First Quarter Compared with Fiscal 2025 First Quarter**

***La-Z-Boy Incorporated***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | |
|<br>***(Unaudited, amounts in thousands, except percentages)*** | **7/26/2025** | **7/26/2025** | **7/27/2024** | **7/27/2024** |<br>**% Change** |
| Sales | $| 492229 | $| 495532 | (0.7)% |
| Operating income | 21987 | 21987 | 32370 | 32370 | (32.1)% |
| Operating margin | 4.5% | 4.5% | 6.5% | 6.5% |  |

---

**<u>Sales</u>**

Consolidated sales decreased $3.3 million, or 1%, in the first quarter of fiscal 2026, compared with the same period a year ago. Sales in the first quarter of fiscal 2026 benefited from incremental sales from our retail store acquisitions in the prior year, increased sales from our retail store expansion, and growth in our core North America La-Z-Boy branded wholesale business driven by strategic pricing and surcharge actions. These increases were more than offset by the combination of lower delivered volume in our international wholesale business due to a significant customer transition that began in the second quarter of fiscal 2025, along with lower delivered volume in our Joybird business.

**<u>Operating Margin</u>**

Operating margin, which is calculated as operating income as a percentage of sales, decreased 200 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin, which is calculated as gross profit as a percentage of sales, decreased 60 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Increased supply chain costs, including higher distribution costs primarily related to our distribution and home delivery transformation, and increased overhead in our manufacturing operations, drove a decrease in gross margin in the first quarter of fiscal 2026 compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Gross margin also declined due to increased promotional activity on casegoods products and accessories in the first quarter of fiscal 2026 compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Partially offsetting the items above, gross margin in the first quarter of fiscal 2026 benefited from lower input costs compared with the same period a year ago, led by favorable inbound ocean freight and improved sourcing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SG&A expenses as a percentage of sales increased 140 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ SG&A expense as a percentage of sales increased due to fixed cost deleverage in our Retail segment from lower delivered same-store sales combined with higher selling expenses and fixed costs resulting from our retail store expansion in support of our long-term strategy of growing our Retail segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Partially offsetting the item above, SG&A expense as a percentage of sales benefited from lower warranty expense, driven by decreased claims activity and improved warranty trends, along with reduced marketing spend relative to the prior year.

We discuss each segment's results in the following section.

***Retail Segment***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | |
|<br>***(Unaudited, amounts in thousands, except percentages)*** | **7/26/2025** | **7/26/2025** | **7/27/2024** | **7/27/2024** |<br>**% Change** |
| Sales | $| 207150 | $| 202370 | 2.4% |
| Operating income | 13120 | 13120 | 20649 | 20649 | (36.5)% |
| Operating margin | 6.3% | 6.3% | 10.2% | 10.2% |  |

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**<u>Sales</u>**

The Retail segment's sales increased $4.8 million, or 2%, in the first quarter of fiscal 2026, compared with the same period a year ago primarily due to $8.4 million of incremental sales resulting from our retail store acquisitions that occurred in fiscal 2025 along with increased sales from our retail store expansion, net of closed stores. These increases were partially offset by a decline in delivered same-store sales.

Total written sales increased 5% in the first quarter of fiscal 2026, compared with the same period a year ago. Written same-store sales decreased 4% over the same periods, primarily due to lower consumer demand as a result of a challenging macroeconomic environment. Same-store sales include the sales of all currently active stores that have been open and company-owned for each comparable period.

**<u>Operating Margin</u>**

The Retail segment's operating margin decreased 390 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin decreased 30 basis points in the first quarter of fiscal 2026, compared with the same period a year ago, primarily due to increased promotional activity on casegoods products and accessories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SG&A expenses as a percentage of sales increased 360 basis points in the first quarter of fiscal 2026, compared with the same period a year ago, primarily due to fixed cost deleverage from lower delivered same-store sales combined with increased selling expenses and fixed costs resulting from our retail store expansion of 11 net new stores over the last 12 months, supporting our long-term strategy of growing our Retail segment.

***Wholesale Segment***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | |
|<br>***(Unaudited, amounts in thousands, except percentages)*** | **7/26/2025** | **7/26/2025** | **7/27/2024** | **7/27/2024** |<br>**% Change** |
| Sales to external customers | $| 255345 | $| 256020 |  |
| Intersegment sales | 97612 | 97612 | 94880 | 94880 |  |
| &nbsp;&nbsp;Total Sales | 352957 | 352957 | 350900 | 350900 | 0.6% |
| Operating income | 25175 | 25175 | 23999 | 23999 | 4.9% |
| Operating margin | 7.1% | 7.1% | 6.8% | 6.8% |  |

---

**<u>Sales</u>**

The Wholesale segment's sales increased $2.1 million, or 1%, in the first quarter of fiscal 2026, compared with the same period a year ago, primarily due to growth in our core North America La-Z-Boy branded wholesale business led by strategic pricing and surcharge actions, combined with a favorable shift in product mix towards higher priced products. Additionally, sales increased for our casegoods business as a result of strategic pricing and promotional activity. These increases in sales were partially offset by lower delivered volume in our international wholesale business due to a significant customer transition that began in the second quarter of fiscal 2025.

**<u>Operating Margin</u>**

The Wholesale segment's operating margin increased 30 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin decreased 60 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Increased distribution costs, primarily due to incremental expenses related to our distribution and home delivery transformation, as well as increased fixed costs, and higher outbound freight, drove a 110 basis point decrease in gross margin in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Higher manufacturing overhead costs led to a 40 basis point decrease in gross margin in the first quarter of fiscal 2026 compared with the same period a year ago.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Partially offsetting the items above, lower input costs, led by favorable inbound ocean freight and improved sourcing, drove a 100 basis point increase in gross margin during the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SG&A expense as a percentage of sales decreased 90 basis points in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Lower warranty expense resulting from decreased claims activity and improved warranty trends drove a 60 basis point decrease in SG&A expense as a percentage of sales in the first quarter of fiscal 2026, compared with the same period a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Marketing expense in the first quarter of fiscal 2026 decreased relative to the prior year, resulting in a 40 basis point comparative decrease in SG&A expense as a percentage of sales.

***Corporate and Other***

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| | | | |
|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | |
|<br>***(Unaudited, amounts in thousands, except percentages)*** | **7/26/2025** | **7/27/2024** |<br>**% Change** |
| Sales | $31235 | $38708 | (19.3)% |
| Intercompany eliminations | (99113) | (96446) | (2.8)% |
| Operating loss | (16308) | (12278) | (32.8)% |

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**<u>Sales</u>**

Corporate and Other sales decreased $7.5 million in the first quarter of fiscal 2026, compared with the same period a year ago. The change in sales was led by Joybird sales which decreased $6.8 million to $27.7 million in the first quarter of fiscal 2026, primarily due to lower delivered volume partially offset by a favorable shift in product mix. Written sales for Joybird decreased 14% in the first quarter of fiscal 2026, compared with the same period a year ago, primarily from lower online sales.

Intercompany eliminations increased in the first quarter of fiscal 2026 compared with the same period a year ago due to higher sales from our Wholesale segment to our Retail segment.

**<u>Operating Loss</u>**

Our Corporate and Other operating loss increased $4.0 million in the first quarter of fiscal 2026, compared with the same period a year ago, primarily due to Joybird's operating loss resulting from lower delivered volume, combined with lower La-Z-Boy branded royalty income.

**Non-Operating Income (Expense)**

***Interest Income***

Interest income was $1.3 million lower in the first quarter of fiscal 2026, compared with the same period a year ago, primarily driven by lower interest rates.

***Income Taxes***

Our effective tax rate was 25.0% for the first quarter of fiscal 2026, compared with 25.5% for the first quarter of fiscal 2025. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

**Liquidity and Capital Resources**

Our sources of liquidity include cash and cash equivalents, short-term and long-term investments, cash from operations, and amounts available under our credit facility. We believe these sources remain adequate to meet our short-term and long-term liquidity requirements, finance our long-term growth plans, and fulfill other cash requirements for day-to-day operations and capital expenditures, including fiscal 2026 contractual obligations.

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We had cash and cash equivalents of $318.5 million at July 26, 2025, compared with $328.4 million at April 26, 2025. In addition, we had investments to enhance our returns on cash of $2.7 million at July 26, 2025, compared with $2.6 million at April 26, 2025.

The following table illustrates the main components of our cash flows:

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| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
|<br>***(Unaudited, amounts in thousands)*** | **7/26/2025** | **7/27/2024** |
| **Cash Flows Provided By (Used For)** | | |
| Net cash provided by operating activities | $36292 | $52318 |
| Net cash used for investing activities | (18819) | (17193) |
| Net cash used for financing activities | (27716) | (34315) |
| Exchange rate changes | 338 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in cash and cash equivalents | $(9905) | $1172 |

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***Operating Activities***

During the first quarter of fiscal 2026, net cash provided by operating activities was $36.3 million, a decrease of $16.0 million compared with the same period a year ago. The year over year decrease was primarily due to lower net income, adjusted for non-cash items, along with a smaller reduction in receivables relative to the prior year. Our cash provided by operating activities in fiscal 2026 was primarily attributable to net income, adjusted for non-cash items, favorable changes to working capital, and higher customer deposits, partially offset by the payout of our fiscal 2025 incentive compensation award.

***Investing Activities***

During the first quarter of fiscal 2026, net cash used for investing activities was $18.8 million, an increase of $1.6 million compared with the same period a year ago, due to lower proceeds from the sale of investments, net of investment purchases, along with higher capital expenditures, partially offset by lower cash paid for acquisitions.

Cash used for investing activities in fiscal 2026 was mainly attributable to capital expenditures of $18.5 million, which were primarily related to La-Z-Boy Furniture Galleries<sup>®</sup> (new stores and remodels) and manufacturing-related investments. We anticipate that spending on these items will continue in fiscal 2026, along with spending related to our distribution and home delivery transformation, with full year fiscal 2026 capital expenditures expected to be in the range of $90 to $100 million. We have no material contractual commitments outstanding for future capital expenditures.

***Financing Activities***

On October 15, 2021, we entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, the other agents and lenders named therein and the other parties thereto (as amended prior to July 1, 2025, the "Credit Agreement"). The Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of $200 million, which includes a $50 million letter of credit sub-limit (the "Credit Facility").

On July 1, 2025, we entered into an amendment to the Credit Agreement (the "Credit Agreement Amendment"). The Credit Agreement Amendment, among other things, (i) extended the maturity date of the Credit Facility from October 15, 2026 to July 1, 2030, (ii) increased the accordion basket for additional revolving commitments and/or incremental term loans from $100 million to $125 million, (iii) removed the secured overnight financing rate ("SOFR") credit spread adjustment, and (iv) decreased the consolidated fixed charge coverage ratio required to be satisfied under the Company's financial covenant.

Borrowings under the Credit Facility may be used by the Company for general corporate purposes. The Credit Facility will mature on July 1, 2030, and provides us the ability to extend the maturity date for two additional one-year periods, subject to the satisfaction of customary conditions.

The Credit Facility contains certain restrictive loan covenants, including, among others, financial covenants requiring a maximum consolidated net lease adjusted leverage ratio and a minimum consolidated fixed charge coverage ratio, as well as customary covenants limiting our ability to incur indebtedness, grant liens, make acquisitions, merge or consolidate, and dispose of certain assets.

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As of July 26, 2025, we have no borrowings outstanding under the Credit Facility and we were in compliance with our financial covenants under the Credit Facility. We believe our cash and cash equivalents, short-term investments, and cash from operations, in addition to our available Credit Facility, will provide adequate liquidity for our business operations over the next 12 months.

During the first quarter of fiscal 2026, net cash used for financing activities was $27.7 million, a decrease of $6.6 million compared with the same period a year ago, primarily due to lower share repurchases, partially offset by reduced proceeds from exercised stock options. Cash used for financing activities in fiscal 2026 included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash paid to repurchase 0.3 million shares of company stock was $12.5 million. Our board of directors has authorized the repurchase of Company stock and as of July 26, 2025, 3.4 million shares remained available for repurchase pursuant to this authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash paid to our shareholders in quarterly dividends was $9.0 million. Our board of directors has sole authority to determine if and when we will declare future dividends and on what terms. We expect the board to continue declaring regular quarterly cash dividends for the foreseeable future, but it may discontinue doing so at any time at the board's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash paid for tax withholding on stock issued as part of our employee benefit plans, net of proceeds from exercised stock options, was $5.2 million.

***Exchange Rate Changes***

Due to changes in exchange rates, our cash and cash equivalents increased by $0.3 million for the quarter ended July 26, 2025. These changes impacted our cash balances held in Canada, Thailand, and the United Kingdom.

***Other***

During the first quarter of fiscal 2026, there were no material changes to the information about our contractual obligations and commitments disclosed in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. We do not expect our continuing compliance with existing federal, state and local statutes dealing with protection of the environment to have a material effect on our capital expenditures, earnings, competitive position or liquidity.

**Critical Accounting Policies**

We disclosed our critical accounting policies in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. There were no material changes to our critical accounting policies or estimates during the quarter ended July 26, 2025.

**Recent Accounting Pronouncements**

See Note 1, Basis of Presentation, to the consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of recently adopted accounting standards and other new accounting standards.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

During the first quarter of fiscal 2026, there were no material changes from the information contained in Item 7A of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.

**ITEM 4. CONTROLS AND PROCEDURES**

***Disclosure Controls and Procedures.*** As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting.*** There were no changes in our internal controls over financial reporting that occurred during the first quarter of fiscal 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II — OTHER INFORMATION**

**ITEM 1A. RISK FACTORS**

We disclosed our risk factors in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. There have been no material changes to our risk factors during the first quarter of fiscal 2026.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

Our board of directors has authorized the repurchase of Company stock. Repurchases under these programs will be made at management's discretion from time to time on the open market or in privately negotiated transactions and through Rule 10b5-1. We spent $12.5 million in the first quarter of fiscal 2026 to repurchase 0.3 million shares, pursuant to a Rule 10b5-1 plan. As of July 26, 2025, 3.4 million shares remained available for repurchase pursuant to the board authorization.

The following table summarizes our repurchases of Company stock during the quarter ended July 26, 2025 and includes shares purchased from employees to satisfy their withholding tax obligations upon vesting of restricted shares:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(Unaudited, amounts in thousands, except per share data)*** | **Total number of<br>shares repurchased (1)** | **Average price paid per share** | **Total number of shares repurchased as part of publicly announced plan (2)** | **Maximum number of shares that may yet be repurchased under the plan** |
| Fiscal May (April 27 – May 31, 2025) | 300 | $41.67 | 300 | 3399 |
| Fiscal June (June 1 – Jun 28, 2025) | 153 | $38.09 |  | 3399 |
| Fiscal July (June 29 – July 26, 2025) | 1 | $37.36 |  | 3399 |
| &nbsp;&nbsp;Total (Fiscal First Quarter of 2026) | 454 |  | 300 | 3399 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;In addition to the 300,000 shares we repurchased during the quarter as part of our publicly announced, board-authorized plan described above, this column includes 153,836 shares we repurchased from employees to satisfy their withholding tax obligations upon vesting of restricted and performance based shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;On October 28, 1987, our board of directors announced the authorization of the plan to repurchase Company stock. The plan originally authorized 1.0 million shares, and since October 1987, 33.5 million shares have been added to the plan for repurchase. The authorization has no expiration date.

**ITEM 5. OTHER INFORMATION**

*Securities Trading Plans of Directors and Officers* 

During the quarter ended July 26, 2025, none of our directors or officers adopted or terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as each term is defined in Item 408 of Regulation S-K).

**ITEM 6. EXHIBITS**

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| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| (10.1) | <u>[Second Amendment to Credit Agreement dated as of July 1, 2025, among La-Z-Boy Incorporated, the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent (Incorporated by reference to Exhibit 4.1 to Form 8-K, filed July 2, 2025)](https://www.sec.gov/Archives/edgar/data/57131/000005713125000054/exhibit41-amendedcreditagr.htm)</u> |
| (31.1) | <u>[Certifications of Chief Executive Officer pursuant to Rule 13a-14(a)](lzb-2026725x10qxexx311.htm)</u> |
| (31.2) | <u>[Certifications of Chief Financial Officer pursuant to Rule 13a-14(a)](lzb-2026725x10qxexx312.htm)</u> |
| (32) | <u>[Certifications of Executive Officers pursuant to 18 U.S.C. Section 1350(b)](lzb-2026725x10qxexx32.htm)</u> |
| (101.INS) | Inline XBRL Instance Document |
| (101.SCH) | Inline XBRL Taxonomy Extension Schema Document |
| (101.CAL) | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| (101.LAB) | Inline XBRL Taxonomy Extension Label Linkbase Document |
| (101.PRE) | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| (101.DEF) | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| (104) | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended July 26, 2025, formatted in Inline XBRL (included in Exhibit 101) |

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| | **LA-Z-BOY INCORPORATED** |
| | (Registrant) |
| Date: August 19, 2025 | |
| | BY: /s/ Jennifer L. McCurry |
| | Jennifer L. McCurry<br>Vice President, Corporate Controller and Chief Accounting Officer |

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## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a)

I, Melinda D. Whittington, certify that:

1. I have reviewed this quarterly report on Form 10-Q of La-Z-Boy Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 19, 2025 | /s/ Melinda D. Whittington |
| | Melinda D. Whittington |
| | Board Chair, President and Chief Executive Officer |

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## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATIONS OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)

I, Taylor E. Luebke, certify that:

1. I have reviewed this quarterly report on Form 10-Q of La-Z-Boy Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Date: August 19, 2025 | /s/ Taylor E. Luebke |
| | Taylor E. Luebke |
| | Senior Vice President and Chief Financial Officer |

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## Ex-32

**EXHIBIT 32**

CERTIFICATION OF EXECUTIVE OFFICERS\*

Pursuant to 18 U.S.C. section 1350, each of the undersigned officers of La-Z-Boy Incorporated (the "Company") hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the period ended July 26, 2025 (the "Report") fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Melinda D. Whittington |
| Melinda D. Whittington |
| Board Chair, President and Chief Executive Officer |
| August 19, 2025 |

---

---

| |
|:---|
| /s/ Taylor E. Luebke |
| Taylor E. Luebke |
| Senior Vice President and Chief Financial Officer |
| August 19, 2025 |

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\*The foregoing certification is being furnished solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Report or as a separate disclosure document.

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