On this page of StockholderLetter.com we present the latest annual shareholder letter from LA-Z-BOY INC — ticker symbol LZB. Reading current and past LZB letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
For every person, every home. Ava Reclining Sofa, La-Z-Boy amarack Co ee able, Hammary Founded by family, built for family. Creating comfort like no one else. Pinnacle Recliner, La-Z-Boy Dark Brown Chairside, Hammary
Dear Stakeholders, Over the past 98 years, La-Z-Boy Incorporated has transformed from a small family business into a global leader in furniture retail, manufacturing, and design. Our enduring commitment to quality, comfort, and craftmanship has built a brand trusted by generations. Today, we are building on our legacy further strengthening our Melinda D. Whittington La-Z-Boy Incorporated Board Chair, President and CEO capabilities and finding new ways to delight and inspire consumers. Leveraging deep consumer insights, we re evolving our product assortments to include on-trend merchandise that resonates with today's and tomorrow s consumers. As we approach our centennial in 2027, we remain focused on expanding brand reach, deepening relevance, and executing our Century Vision to position the company for continued success. Fiscal 2025 Summary This year represented further progress despite continued headwinds across the furniture and home furnishings industry. We delivered four consecutive quarters of sales growth, $2.1 billion in total sales, and maintained relatively flat adjusted operating margins of 7.6%. This strong performance reflects growth in our owned Retail business driven by excellent in-store execution, powerful brand expansion, a resilient supply chain, and the competitive advantages of our vertically integrated model. We are playing offense, positioning the company for long-term growth while continuing to deliver strong financial results in a volatile environment. Our Retail segment led the way with the largest La-Z-Boy Furniture Galleries expansion in over two decades, adding 15 new stores, including 11 company-owned locations. We are also advancing our initiative to increase our company-owned footprint and acquired seven stores from independent owners during the year. Despite traffic headwinds, Retail drove improvement in conversion, average ticket, and design sales. And in our Wholesale business, the core North American La Z-Boy brand grew sales and expanded margins in every quarter. Century Vision Execution Fueling Our Progress Guided by our Century Vision, these results demonstrate our ability to deliver strong financial performance in a challenging environment while laying the foundation for accelerated growth. By focusing on what we can control, we are building momentum and positioning La-Z-Boy Incorporated for long-term success. Our total store count has grown to 366 stores, and we surpassed the 200 company-owned milestone in the fourth quarter. We now own 55% of the store footprint, up from
34% a decade ago and expect to add approximately 15 total new stores in FY2026 and continue to acquire independent Furniture Galleries dealers as they become available. Our Wholesale business continues to grow as we deepen relationships with key strategic partners like Slumberland, Rooms to Go, and Furniture Row. This channel strategy approach is expanding our brand reach with compatible distribution to help drive the La-Z-Boy brand. Meanwhile, Joybird, our digitally native brand, continues to build momentum driven by improved in-store execution. The brand has significant opportunity to grow market share and retail store Braxton Daybed, Joybird growth is key to continued success. Joybird s recent collaboration with Pantone, featuring the 2025 Color of Sales, Operating Margin, and Earnings Per Share the Year, Mocha Mousse, underscores our commitment to innovation and design leadership. Across the enterprise, we re strengthening foundational capabilities, particularly our agile supply chain. With our North American-based production, we deliver 2,357 high-quality, customizable furniture quickly, to meet 2,349 2,047 2,109 consumer demand with speed and flexibility. We will continue to execute our playbook to mitigate an everchanging environment and drive long-term profitable 1,734 growth and returns for our shareholders. 3.86 3.11 Creating Value for All Stakeholders 2.62 2.98 2.92 We remain confident in our strategy, the strength of our team, and our ability to deliver sustainable growth. 9.0% FY 2021 9.5% 8.1% Leveraging our iconic La-Z-Boy brand, expansive retail 7.8% 2022* 2023 2024 7.6% 2025 Sales ($ in Millions) network, and agile, North American-based supply chain, we are enhancing the consumer experience. At the same time, we continue to foster a purpose-driven, human-centered culture rooted in our core values. Adjusted Operating Margin* Adjusted Earnings per Share* *See Reconciliation of GAAP to Adjusted Financial Measures at the end of the narrative section
Capital Allocation: Business Investments And Returns To Shareholders* ($ in Millions) In 2025, La-Z-Boy Incorporated was honored by 245 Newsweek as one of America s Most Loved Brands and Most Responsible Companies, and by Forbes as 49 one of America s Best Large Employers recognition 217 30 that reflects the strength of our brand, our commitment 184 to responsible practices, and our focus on our people. 77 100% 44 74 Securing Our Legacy 126 Fiscal 2025 was another successful year for La-Z-Boy Incorporated. We enhanced our portfolio and operations, delivering solid results that reinforce 8 presence in homes for generations and positions 50% 33 91 60% 40% 44 30 78 53 10% 5 2022* 2023 2024 2025 Share Repurchases Dividends Capital Expenditures Cash Used for Acquisitions % Business Investment *Long-term strategy to invest ~50% of Operating Cash Flow into the business and return ~50% to shareholders us for continued relevance and growth in the generations to come. Thank you to our employees, business partners, Board of Directors, and shareholders for your continued support. And to our customers and consumers, we are grateful for your loyalty. We believe our best days are still ahead! Melinda D. Whit tington Board Chair, President and Chief Executive Officer Drayton Sofa, England 30% 20% FY 2021 unwavering commitment to the consumer, quality, and comfort. This focus has made us a trusted 17 From our beginnings with a single recliner to a our nearly 100-year evolution has been guided by an 69 investments that will support the long-term success portfolio of thousands of products across the home, 35 38 of our iconic brand. 70% 54 28 our ability to succeed in any environment. Our robust balance sheet enables us to make strategic 80% 22 107 90%
 • shareholder letter icon 7/16/2025 Letter Continued (Full PDF)
 • stockholder letter icon 7/19/2023 LZB Stockholder Letter
 • stockholder letter icon 7/17/2024 LZB Stockholder Letter
 • stockholder letter icon More "Home Furnishings & Furniture" Category Stockholder Letters
 • Benford's Law Stocks icon LZB Benford's Law Stock Score = 84


LZB Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT

For every
person,
every home.
Ava Reclining Sofa, La-Z-Boy
 amarack Co  ee  able, Hammary
Founded by
family, built
for family.
Creating
comfort like
no one else.
Pinnacle Recliner, La-Z-Boy
Dark Brown Chairside, Hammary

Dear Stakeholders,
Over the past 98 years, La-Z-Boy Incorporated has transformed from a
small family business into a global leader in furniture retail, manufacturing,
and design. Our enduring commitment to quality, comfort, and
craftmanship has built a brand trusted by generations.
Today, we are building on our legacy     further strengthening our
Melinda D. Whittington
La-Z-Boy Incorporated
Board Chair, President and CEO
capabilities and finding new ways to delight and inspire consumers.
Leveraging deep consumer insights, we   re evolving our product
assortments to include on-trend merchandise that resonates with today's and tomorrow   s consumers.
As we approach our centennial in 2027, we remain focused on expanding brand reach, deepening
relevance, and executing our Century Vision to position the company for continued success.
Fiscal 2025 Summary
This year represented further progress despite continued headwinds across the furniture and home
furnishings industry. We delivered four consecutive quarters of sales growth, $2.1 billion in total sales,
and maintained relatively flat adjusted operating margins of 7.6%. This strong performance reflects
growth in our owned Retail business driven by excellent in-store execution, powerful brand expansion,
a resilient supply chain, and the competitive advantages of our vertically integrated model.
We are playing offense, positioning the company for long-term growth while continuing to deliver
strong financial results in a volatile environment. Our Retail segment led the way with the largest
La-Z-Boy Furniture Galleries   expansion in over two decades, adding 15 new stores, including 11
company-owned locations. We are also advancing our initiative to increase our company-owned
footprint and acquired seven stores from independent owners during the year. Despite traffic
headwinds, Retail drove improvement in conversion, average ticket, and design sales. And in our
Wholesale business, the core North American La Z-Boy brand grew sales and expanded margins
in every quarter.
Century Vision Execution Fueling Our Progress
Guided by our Century Vision, these results demonstrate our ability to deliver strong financial
performance in a challenging environment while laying the foundation for accelerated growth. By
focusing on what we can control, we are building momentum and positioning La-Z-Boy Incorporated
for long-term success. Our total store count has grown to 366 stores, and we surpassed the 200
company-owned milestone in the fourth quarter. We now own 55% of the store footprint, up from

34% a decade ago and expect to add approximately
15 total new stores in FY2026 and continue to acquire
independent Furniture Galleries   dealers as they
become available.
Our Wholesale business continues to grow as we
deepen relationships with key strategic partners like
Slumberland, Rooms to Go, and Furniture Row. This
channel strategy approach is expanding our brand
reach with compatible distribution to help drive the
La-Z-Boy brand. Meanwhile, Joybird, our digitally
native brand, continues to build momentum driven by
improved in-store execution. The brand has significant
opportunity to grow market share and retail store
Braxton Daybed, Joybird
growth is key to continued success. Joybird   s recent
collaboration with Pantone, featuring the 2025 Color of
Sales,
Operating Margin,
and Earnings Per Share
the Year, Mocha Mousse, underscores our commitment
to innovation and design leadership.
Across the enterprise, we   re strengthening foundational
capabilities, particularly our agile supply chain. With
our North American-based production, we deliver

2,357

high-quality, customizable furniture quickly, to meet
2,349


2,047
2,109
consumer demand with speed and flexibility. We will
continue to execute our playbook to mitigate an everchanging environment and drive long-term profitable
1,734
growth and returns for our shareholders.
3.86

3.11

Creating Value for All Stakeholders

2.62
2.98


2.92
We remain confident in our strategy, the strength of
our team, and our ability to deliver sustainable growth.
9.0%
FY 2021
9.5%
8.1%
Leveraging our iconic La-Z-Boy brand, expansive retail
7.8%
2022*
2023
2024
7.6%
2025
Sales ($ in Millions)
network, and agile, North American-based supply
chain, we are enhancing the consumer experience. At
the same time, we continue to foster a purpose-driven,
human-centered culture rooted in our core values.
Adjusted Operating Margin*
Adjusted Earnings per Share*
*See Reconciliation of GAAP to Adjusted Financial Measures
at the end of the narrative section

Capital Allocation:
Business Investments And Returns To Shareholders*
($ in Millions)
In 2025, La-Z-Boy Incorporated was honored by

245
Newsweek as one of America   s Most Loved Brands
and Most Responsible Companies, and by Forbes as


49
one of America   s Best Large Employers     recognition
217
30

that reflects the strength of our brand, our commitment

184
to responsible practices, and our focus on our people.

77

100%
44
74

Securing Our Legacy

126

Fiscal 2025 was another successful year for
La-Z-Boy Incorporated. We enhanced our portfolio
and operations, delivering solid results that reinforce



8



presence in homes for generations   and positions
50%
33
91


60%
40%

44
30

78
53
10%
5
2022*
2023
2024
2025
Share Repurchases
Dividends
Capital Expenditures
Cash Used for Acquisitions
% Business Investment
*Long-term strategy to invest ~50% of Operating Cash Flow
into the business and return ~50% to shareholders
us for continued relevance and growth in the
generations to come.
Thank you to our employees, business partners,
Board of Directors, and shareholders for your
continued support. And to our customers and
consumers, we are grateful for your loyalty. We
believe our best days are still ahead!
Melinda D. Whit tington
Board Chair, President and Chief Executive Officer
Drayton Sofa, England
30%
20%

FY 2021
unwavering commitment to the consumer, quality,
and comfort. This focus has made us a trusted

17
From our beginnings with a single recliner to a
our nearly 100-year evolution has been guided by an
69

investments that will support the long-term success
portfolio of thousands of products across the home,
35
38

of our iconic brand.
70%
54
28
our ability to succeed in any environment. Our
robust balance sheet enables us to make strategic
80%
22
107

90%



shareholder letter icon 7/16/2025 Letter Continued (Full PDF)
 

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