Global upholstery manufacturer La-Z-Boy Incorporated has reported a growth in second quarter sales.
According to its latest trading update for the period ended 25 October 2025, sales totalled $522 million, up slightly against the prior year comparable period by 0.3%, reflecting growth in Retail and Wholesale segments, offset by a decline in Joybird sales.
Operating margin was 6.9% for the quarter on a GAAP basis and 7.1% on an adjusted basis. Net income resulted at $28.8 million, down by 4%.
Second quarter total written sales for the Retail segment (company-owned La-Z-Boy stores) grew 4% versus a year ago and written same-store sales (which exclude the impact of both newly opened stores and newly acquired stores) were down 2%.
This represents a continued sequential improvement in written same-store sales trends over the last two quarters against a challenging consumer and macroeconomic environment.
Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said: “We were pleased to deliver modest sales growth, particularly in our Wholesale segment where we also again delivered margin expansion, continuing to create our own momentum in what remains a choppy landscape.
“We are investing in the business for the long term, as highlighted by the opening of 15 new company-owned stores in the last 12 months and the advancement of our distribution and home delivery transformation project. Furthermore, in the beginning of our third quarter, we completed the previously announced acquisition of a 15-store network in the southeast U.S. region. Our Century Vision strategy to grow our Retail store footprint and expand brand reach is working and positions us to disproportionately benefit when overall industry volumes rebound.
“In addition to investing in our core, vertically integrated North American upholstery business, we are proactively taking steps to optimize our portfolio. We have announced plans to exit our non-core wholesale casegoods and upholstery businesses in the back half of the fiscal year, announced the proposed closure of our UK manufacturing facility, and strategically realigned our commercial leadership and corporate staffing to enhance operating efficiency.
“On top of this, leveraging our North American manufacturing base with ~90% of finished goods produced in the U.S., we are successfully navigating the current trade and tariff volatility. Our iconic brand, well positioned manufacturing base, strong balance sheet, and talented team provide the foundation for continued growth and margin expansion.”
On the UK facility in Colne, which employs 125 staff, La-Z-Boy previously stated that it has entered into a consultation on the future of the factory. This began at the end of October and will last at least for 45 days.
“Market conditions remain challenging across the furniture manufacturing sector,” the company said. “Over the past two years, La-Z-Boy’s UK manufacturing business has experienced consistently low order volumes, which has impacted operational costs.
“With no clear indication of dramatic strengthening of demand in the near to medium term, the company has entered into a formal collective redundancy consultation process with the proposal to close the plant.”
La-Z-Boy added that during this period, operations and production would continue with no final decision being made at this time as it continues to explore all viable alternatives.
Looking ahead, Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, added: “We expect fiscal third quarter sales to be in the range of $525-545 million (growth of 1-4% year-over-year) and adjusted operating margin to be in the range of 5.0-6.5%, reflecting advancement of our Century Vision initiatives, friction costs related to portfolio and supply chain optimizations, and a measured view on the uncertain macroeconomic backdrop.”
