La-Z-Boy Incorporated Reports Strong Fourth Quarter and Full Year Results; Sales Growth Across All Segments for the Year and Strong Operating Cash Flow Performance

Fiscal 2025 Fourth Quarter Highlights: Consolidated delivered sales of $571 million Up 3% versus prior year Retail segment delivered sales increased 8% Company-owned La-Z-Boy Furniture Galleries® network grew by a total of six stores; 203 company-owned store base now represents 55% of total network Wholesale segment delivered sales increased 2%GAAP operating margin of 5.2%; adjusted(1) operating margin of 9.4%, flat versus the year ago periodGAAP diluted EPS of $0.36 and adjusted(1) diluted EPS of $0.92, both of which include a $0.10 impact from unfavorable foreign tax discrete itemsDelivered sales exceeded high end of guidance range and adjusted(1) operating margin at high end of guidance rangeGenerated $62 million in operating cash flow for the quarter, up 17% versus prior year Fiscal 2025 Highlights: Consolidated delivered sales of $2.1 billion Up 3% versus prior year Retail segment delivered sales increased 5% Added 11 newly opened stores, one of the largest yearly expansions in company history, and acquired seven independent La-Z-Boy Furniture Galleries® stores Wholesale segment delivered sales increased 2%Joybird delivered sales increased 5%GAAP operating margin of 6.4%; adjusted(1) operating margin of 7.6%, down 20 basis points versus a year agoGAAP diluted EPS of $2.35 and adjusted(1) diluted EPS of $2.92, both of which include a $0.10 impact from unfavorable foreign tax discrete itemsGenerated $187 million in operating cash flow for the year, up 18% versus prior yearReturned $113 million to shareholders through share repurchases and dividends Increased quarterly dividend by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase MONROE, Mich., June 17, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong fourth quarter results for the period ended April 26, 2025. For the quarter, sales totaled $571 million, growing 3% against the prior year comparable period. Operating margin was 5.2% for the quarter on a GAAP basis and 9.4% on an adjusted(1) basis. Diluted earnings per share totaled $0.36 on a GAAP basis and $0.92 on an adjusted(1) basis, both of which include a $0.10 impact from unfavorable foreign tax discrete items. The company returned $113 million to shareholders for the year, up over 30% versus the prior year. Fourth quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) grew 3% versus a year ago and written same-store sales (which exclude the impact of newly opened stores and newly acquired stores) were down 5% versus a year ago. Continued challenges in the housing market with stubbornly high mortgage rates and increased volatility in the global economy negatively influenced consumer sentiment and had an adverse impact on industry trends. Industry data for the quarter was mixed with public company peers noting same-store sales of relatively flat to declines in the mid-teen range, while the broader industry data as reported by the U.S. Census Bureau indicated an increase in the mid-single digits. Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, “Our fourth quarter results reflect the ongoing strengthening of our brand and operations under our Century Vision strategy. We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty. We are controlling what we can control with distinct strategies and initiatives across each of our businesses. In Retail, we continue to grow our direct-to-consumer business, own the entire end-to-end consumer experience, and develop more value-added consumer insights. Through opening net new stores and also acquiring existing independent La-Z-Boy Furniture Galleries®, we reached a new milestone in the quarter, growing our company-owned store footprint to over 200 stores, nearly doubling our store count over the last 10 years, and now owning 55% of the total network. In Wholesale, we continue to expand our brand reach with compatible strategic partners to serve more consumers. Additionally, we are successfully driving scale and efficiencies in our supply chain. This is highlighted by our core North America La-Z-Boy wholesale business achieving sales growth and margin expansion for four consecutive quarters during fiscal 2025, and continuing to strengthen as we initiate our multi-year distribution and delivery redesign.” Whittington added, “Even as we expect global economic uncertainty to continue challenging consumers in the near term, we are confident in the strength of our business model to outperform our peers and deliver strong financial performance. La-Z-Boy is an iconic brand in a highly fragmented market. We have successfully navigated challenging times throughout our 98-year history by delivering comfort and quality to our consumers. A strong balance sheet combined with an agile supply chain provides us a position of strength in the industry. We will continue to execute our playbook to mitigate an ever changing environment and drive long-term profitable growth and returns for all stakeholders.” First Quarter Outlook:Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, “We delivered growth and strong financial results in what was another challenging year for the industry. We continue to control what we can control and are executing against our Century Vision strategy, which will enable growth through our centennial and beyond. I am pleased with our progress, and our ability to deliver results at or above the high end of our sales and margin expectations for the fourth quarter, even in light of considerable volatility during the quarter. Given higher levels of uncertainty in the broader economic climate, we expect the industry outlook to continue to be volatile and we are planning prudently to navigate the year ahead. We expect to continue to outperform the industry, driven by growth in our company-owned Retail segment and core North America La-Z-Boy wholesale business. Assuming no significant changes in external factors, we expect fiscal first quarter sales to be in the range of $490-$510 million, reflecting modest growth in a challenged consumer environment. We expect adjusted operating margin(2) to be in the range of 5.5-7.0%, including the impact of transitory pressure from our UK and Joybird businesses, as well as investment in our distribution network and home delivery redesign project. Also, as a reminder, our first quarter is generally the lowest sales and margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown.” Key Results: (Unaudited, amounts in thousands, except per share data and percentages) Quarter Ended Year Ended 4/26/2025 4/27/2024 Change 4/26/2025 4/27/2024 ChangeSales $570,871 $553,535 3% $2,109,207 $2,047,027 3% GAAP operating income 29,527 50,097 (41)% 135,837 150,796 (10)% Adjusted operating income 53,611 52,114 3% 160,826 159,398 1% GAAP operating margin 5.2% 9.1% (390) bps 6.4% 7.4% (100) bps Adjusted operating margin 9.4% 9.4% 0 bps 7.6% 7.8% (20) bps GAAP net income attributable to La-Z-Boy Incorporated 14,931 39,308 (62)% 99,556 122,626 (19)% Adjusted net income attributable to La-Z-Boy Incorporated 38,392 40,811 (6)% 123,745 129,131 (4)% Diluted weighted average common shares 41,942 42,974 42,345 43,280 GAAP diluted earnings per share $0.36 $0.91 (60)% $2.35 $2.83 (17)% Adjusted diluted earnings per share $0.92 $0.95 (3)% $2.92 $2.98 (2)% Liquidity Measures: Year Ended Year Ended(Unaudited, amounts in thousands) 4/26/2025 4/27/2024 (Unaudited, amounts in thousands) 4/26/2025 4/27/2024Free Cash Flow Cash Returns to Shareholders Operating cash flow $187,271 $158,127 Share repurchases $77,930 $52,773Capital expenditures (74,280) (53,551) Dividends 34,955 32,665Free cash flow $112,991 $104,576 Cash returns to shareholders $112,885 $85,438 (Unaudited, amounts in thousands) 4/26/2025 4/27/2024Cash and cash equivalents $328,449 $341,098 Fiscal 2025 Fourth Quarter Results versus Fiscal 2024 Fourth Quarter: Consolidated sales in the fourth quarter of fiscal 2025 increased 3% to $571 million versus last year, primarily driven by acquisitions and new stores in the Retail segment, and continued momentum in our core North America La-Z-Boy wholesale businessConsolidated GAAP operating margin was 5.2% versus 9.1% Consolidated adjusted(1) operating margin was flat at 9.4% versus the year ago period, as lower input costs (reduced commodity prices and improved sourcing) and leverage on marketing investments were offset by the impact of a significant customer transition in our international wholesale business as well as acceleration of tariff expenses in the quarter GAAP diluted EPS was $0.36 versus $0.91, and adjusted(1) diluted EPS totaled $0.92 versus $0.95 last year in the comparable period. GAAP and adjusted(1) diluted EPS for fiscal 2025 both include a $0.10 impact from unfavorable foreign tax discrete items Retail Segment: Sales: Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 3% compared to the year ago period driven primarily by new and acquired stores Written same-store sales decreased 5%, as continued weakness in industry traffic was partially offset by higher average ticket and design sales Delivered sales increased 8% to $247 million versus last year, primarily due to growth from acquired and new stores and positive delivered same-store sales growth Operating Margin: GAAP operating margin and GAAP operating income were 13.1% and $32 million, versus 14.1% and $32 million in the prior period, respectively Adjusted(1) operating margin and adjusted(1) operating income were 13.1% and $32 million, down 110 basis points, and flat, respectively, due to investment in new stores Wholesale Segment: Sales: Sales increased 2% to $402 million, driven by growth in our core North America La-Z-Boy wholesale business partially offset by the continued impact of a significant customer transition in our international wholesale business Operating Margin: GAAP operating margin decreased to 2.5% versus 8.1% Adjusted(1) operating margin was 8.5%, flat versus the year ago as gross margin and SG&A as a percent of sales were largely unchanged. Continued margin expansion in our core North America La-Z-Boy wholesale business was offset by the margin impact of a significant customer transition in the international wholesale business as well as incremental tariff expenses in the quarter Corporate & Other: Joybird written sales decreased 21% as recent economic and industry trends disproportionately impacted the Joybird online consumerDelivered sales decreased 2% to $36 million as positive growth within existing stores was offset by declines in the online businessJoybird adjusted(1) operating margin was positive in the fourth quarter, relatively flat versus prior year Balance Sheet and Cash Flow, Fiscal 2025: Ended the quarter with $328 million in cash(3) and no external debtGenerated $187 million in cash from operating activities (up 18% from the prior year) including $62 million in the fourth quarter (up 17% from the prior year comparable period), versus $158 million in Fiscal 2024 and $53 million in last year's fourth quarterInvested $74 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels)Returned approximately $113 million to shareholders, including $78 million in share repurchases and $35 million in dividends, which was raised by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase Conference Call:La-Z-Boy will hold a conference call with the investment community on Wednesday, June 18, 2025, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 546047. The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at https://lazboy.gcs-web.com/. A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 52510. The webcast replay will be available for one year. Investor Relations Contact:Mark Becks, CFA, (734) 457-9538mark.becks@la-z-boy.com Media Contact:Cara Klaer, (734) 598-0652cara.klaer@la-z-boy.com About La-Z-Boy:La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers. The Retail segment consists of over 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with La-Z-Boy.com, serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: https://www.la-z-boy.com/. Notes:(1)Beginning in FY2025 Q4, the company renamed all of its Non-GAAP financial measures to adjusted financial measures; for example, Non-GAAP diluted EPS has been renamed to adjusted diluted EPS. The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged. Please refer to the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” and “Reconciliation of GAAP to Adjusted Financial Measures: Segment Information” for detailed information. Adjusted amounts for the fourth quarter of fiscal 2025 exclude: a $20.6 million pre-tax, or $0.49 per diluted share, charge related to the goodwill impairment in our United Kingdom ("UK") wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business.a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actionspurchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating income Adjusted amounts for the fourth quarter of fiscal 2024 exclude: a $1.7 million pre-tax, or less than $0.03 per diluted share, charge related to our Mexico supply chain optimization actionspurchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or $0.01 per diluted share, all included in operating income Adjusted amounts for full fiscal 2025 exclude: a $20.6 million pre-tax, or $0.48 per diluted share, charge related to the goodwill impairment in our UK wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business.a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actionspurchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax, or $0.02 per diluted share, all included in operating income Adjusted amounts for full fiscal 2024 exclude: a $7.5 million pre-tax, or $0.13 per diluted share, charge related to our Mexico supply chain optimization actionspurchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax. or $0.02 per share, with $1.1 million included in operating income and $0.1 million included in interest expense (2)This reference to adjusted operating margin for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts. Please refer to the accompanying “Reconciliation of GAAP to adjusted Financial Measures” and “Reconciliation of GAAP to adjusted Financial Measures: Segment Information” for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure. (3)Cash includes cash and cash equivalents. Cautionary Note Regarding Forward-Looking Statements:This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. 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, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry. The forward-looking statements in this press release are based on certain assumptions and currently available 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 results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. 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. Adjusted Financial Measures:In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges, goodwill impairment charges, and purchase accounting charges. The supply chain optimization charges in fiscal 2025 include asset impairment costs and severance costs related to our United Kingdom wholesale businesses. The supply chain optimization charges in fiscal 2024 include asset impairment costs, accelerated depreciation expense, lease termination gains, severance costs, and employee relocation costs related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The purchase accounting charges include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, and fair value adjustments of future cash payments recorded as interest expense. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated’s results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, supply chain optimization charges are dependent on the timing, size, number and nature of the operations being closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Adjusted Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented. LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF INCOME Quarter Ended Year Ended(Unaudited, amounts in thousands, except per share data) 4/26/2025 4/27/2024 4/26/2025 4/27/2024Sales $570,871 $553,535 $2,109,207 $2,047,027 Cost of sales 319,809 313,452 1,182,789 1,165,357 Gross profit 251,062 240,083 926,418 881,670 Selling, general and administrative expense 200,954 189,986 770,000 730,874 Goodwill impairment 20,581 — 20,581 — Operating income 29,527 50,097 135,837 150,796 Interest expense (134) (126) (545) (455)Interest income 3,258 4,260 14,877 15,482 Other income (expense), net (635) (92) (3,035) (71)Income before income taxes 32,016 54,139 147,134 165,752 Income tax expense 16,666 13,807 46,182 41,116 Net income 15,350 40,332 100,952 124,636 Net (income) loss attributable to noncontrolling interests (419) (1,024) (1,396) (2,010)Net income attributable to La-Z-Boy Incorporated $14,931 $39,308 $99,556 $122,626 Basic weighted average common shares 41,208 42,499 41,601 42,878 Basic net income attributable to La-Z-Boy Incorporated per share $0.36 $0.92 $2.39 $2.86 Diluted weighted average common shares 41,942 42,974 42,345 43,280 Diluted net income attributable to La-Z-Boy Incorporated per share $0.36 $0.91 $2.35 $2.83 LA-Z-BOY INCORPORATEDCONSOLIDATED BALANCE SHEET (Unaudited, amounts in thousands, except par value) 4/26/2025 4/27/2024Current assets Cash and equivalents $328,449 $341,098 Receivables, net of allowance of $5,042 at 4/26/2025 and $5,076 at 4/27/2024 139,533 139,213 Inventories, net 255,285 263,237 Other current assets 82,421 93,260 Total current assets 805,688 836,808 Property, plant and equipment, net 339,212 298,224 Goodwill 205,590 214,453 Other intangible assets, net 51,161 47,251 Deferred income taxes – long-term 7,349 10,283 Right of use lease asset 452,848 446,466 Other long-term assets, net 60,314 59,957 Total assets $1,922,162 $1,913,442 Current liabilities Accounts payable $95,984 $96,486 Lease liabilities, short-term 80,592 77,027 Accrued expenses and other current liabilities 244,215 263,768 Total current liabilities 420,791 437,281 Lease liability, long-term 410,265 404,724 Other long-term liabilities 59,130 58,077 Shareholders' Equity Preferred shares – 5,000 authorized; none issued — — Common shares, $1.00 par value – 150,000 authorized; 41,164 outstanding at 4/26/2025 and 42,440 outstanding at 4/27/2024 41,164 42,440 Capital in excess of par value 385,601 368,485 Retained earnings 597,432 598,009 Accumulated other comprehensive loss (3,574) (5,870)Total La-Z-Boy Incorporated shareholders' equity 1,020,623 1,003,064 Noncontrolling interests 11,353 10,296 Total equity 1,031,976 1,013,360 Total liabilities and equity $1,922,162 $1,913,442 LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF CASH FLOWS Year Ended(Unaudited, amounts in thousands) 4/26/2025 4/27/2024Cash flows from operating activities Net income $100,952 $124,636 Adjustments to reconcile net income to cash provided by operating activities (Gain)/loss on disposal and impairment of assets 1,998 1,101 (Gain)/loss on sale of investments (235) (1,199)Provision for doubtful accounts 851 511 Depreciation and amortization 46,667 48,552 Amortization of right-of-use lease assets 76,964 76,133 Lease impairment/(settlement) — (1,175)Equity-based compensation expense 17,400 14,426 Goodwill impairment 20,581 — Change in deferred taxes 5,116 (3,268)Change in receivables (1,906) (16,811)Change in inventories 12,792 19,877 Change in other assets 8,701 10,303 Change in payables (2,066) (8,606)Change in lease liabilities (78,609) (76,766)Change in other liabilities (21,935) (29,587)Net cash provided by operating activities 187,271 158,127 Cash flows from investing activities Proceeds from disposals of assets 412 4,972 Capital expenditures (74,280) (53,551)Purchases of investments (6,990) (18,351)Proceeds from sales of investments 11,994 24,816 Acquisitions (29,525) (39,440)Net cash used for investing activities (98,389) (81,554) Cash flows from financing activities Payments on finance lease liabilities (663) (489)Holdback payments for acquisitions — (5,000)Stock issued for stock and employee benefit plans, net of shares withheld for taxes 12,350 10,872 Repurchases of common stock (77,930) (52,773)Dividends paid to shareholders (34,955) (32,665)Dividends paid to minority interest joint venture partners (1) (1,414) (1,172)Net cash used for financing activities (102,612) (81,227) Effect of exchange rate changes on cash and equivalents 1,081 (926)Change in cash, cash equivalents and restricted cash (12,649) (5,580)Cash, cash equivalents and restricted cash at beginning of period 341,098 346,678 Cash, cash equivalents and restricted cash at end of period $328,449 $341,098 Supplemental disclosure of non-cash investing activities Capital expenditures included in payables $7,234 $5,952 (1)Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested. LA-Z-BOY INCORPORATEDSEGMENT INFORMATION Quarter Ended Year Ended(Unaudited, amounts in thousands) 4/26/2025 4/27/2024 4/26/2025 4/27/2024Sales Wholesale segment: Sales to external customers $286,883 $287,900 $1,056,914 $1,048,431 Intersegment sales 115,141 104,561 422,905 398,847 Wholesale segment sales 402,024 392,461 1,479,819 1,447,278 Retail segment sales 246,769 227,878 898,370 855,126 Corporate and Other: Sales to external customers 37,219 37,757 153,923 143,470 Intersegment sales 1,799 1,587 6,552 10,299 Corporate and Other sales 39,018 39,344 160,475 153,769 Eliminations (116,940) (106,148) (429,457) (409,146)Consolidated sales $570,871 $553,535 $2,109,207 $2,047,027 Operating Income (Loss) Wholesale segment $10,120 $31,709 $82,213 $99,373 Retail segment 32,414 32,170 105,417 111,682 Corporate and Other (13,007) (13,782) (51,793) (60,259)Consolidated operating income $29,527 $50,097 $135,837 $150,796 LA-Z-BOY INCORPORATEDUNAUDITED QUARTERLY FINANCIALDATA Fiscal2025 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks)(Amounts in thousands, except per share data) 7/27/2024 10/26/2024 1/25/2025 4/26/2025Sales $495,532 $521,027 $521,777 $570,871 Cost of sales 282,189 290,379 290,412 319,809 Gross profit 213,343 230,648 231,365 251,062 Selling, general and administrative expense 180,973 191,876 196,197 200,954 Goodwill impairment — — — 20,581 Operating income 32,370 38,772 35,168 29,527 Interest expense (210) (99) (102) (134)Interest income 4,424 3,730 3,465 3,258 Other income (expense), net (618) (1,879) 97 (635)Income before income taxes 35,966 40,524 38,628 32,016 Income tax expense 9,162 10,671 9,683 16,666 Net income 26,804 29,853 28,945 15,350 Net (income) loss attributable to noncontrolling interests (645) 184 (516) (419)Net income attributable to La-Z-Boy Incorporated $26,159 $30,037 $28,429 $14,931 Diluted weighted average common shares 42,564 42,154 42,103 41,942 Diluted net income attributable to La-Z-Boy Incorporated per share $0.61 $0.71 $0.68 $0.36 Fiscal2024 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks)(Amounts in thousands, except per share data) 7/29/2023 10/28/2023 1/27/2024 4/27/2024Sales $481,651 $511,435 $500,406 $553,535 Cost of sales 275,923 288,830 287,152 313,452 Gross profit 205,728 222,605 213,254 240,083 Selling, general and administrative expense 171,202 188,993 180,693 189,986 Operating income 34,526 33,612 32,561 50,097 Interest expense (122) (101) (106) (126)Interest income 3,056 4,042 4,124 4,260 Other income (expense), net 556 104 (639) (92)Income before income taxes 38,016 37,657 35,940 54,139 Income tax expense 10,090 9,963 7,256 13,807 Net income 27,926 27,694 28,684 40,332 Net income attributable to noncontrolling interests (447) (495) (44) (1,024)Net income attributable to La-Z-Boy Incorporated $27,479 $27,199 $28,640 $39,308 Diluted weighted average common shares 43,333 43,401 43,195 42,974 Diluted net income attributable to La-Z-Boy Incorporated per share $0.63 $0.63 $0.66 $0.91 LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES Quarter Ended Year Ended(Amounts in thousands, except per share data) 4/26/2025 4/27/2024 4/26/2025 4/27/2024GAAP gross profit $251,062 $240,083 $926,418 $881,670 Purchase accounting charges (1) — 89 140 89 Supply chain optimization charges (2) 1,123 502 1,123 4,468 Adjusted gross profit $252,185 $240,674 $927,681 $886,227 GAAP SG&A $200,954 $189,986 $770,000 $730,874 Purchase accounting charges (3) (256) (254) (1,021) (1,016)Supply chain optimization charges (4) (2,124) (1,172) (2,124) (3,029)Adjusted SG&A $198,574 $188,560 $766,855 $726,829 GAAP operating income $29,527 $50,097 $135,837 $150,796 Purchase accounting charges 256 343 1,161 1,105 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted operating income $53,611 $52,114 $160,826 $159,398 GAAP income before income taxes $32,016 $54,139 $147,134 $165,752 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted income before income taxes $56,100 $56,156 $172,123 $174,402 GAAP net income attributable to La-Z-Boy Incorporated $14,931 $39,308 $99,556 $122,626 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Tax effect of purchase accounting (79) (87) (317) (286)Supply chain optimization charges 3,247 1,674 3,247 7,497 Tax effect of supply chain optimization (545) (427) (483) (1,859)Goodwill impairment 20,581 — 20,581 — Adjusted net income attributable to La-Z-Boy Incorporated $38,392 $40,811 $123,745 $129,131 GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $0.36 $0.91 $2.35 $2.83 Purchase accounting charges, net of tax, per share — 0.01 0.02 0.02 Supply chain optimization charges, net of tax, per share 0.07 0.03 0.07 0.13 Goodwill impairment, net of tax, per share 0.49 — 0.48 — Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $0.92 $0.95 $2.92 $2.98 (1)Includes incremental expense upon the sale of inventory acquired at fair value.(2)Fiscal 2025 includes severance charges relating to manufacturing optimization actions in the United Kingdom. Fiscal 2024 includes severance charges related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico.(3)Includes amortization of intangible assets.(4)Fiscal 2025 includes the impairment of fixed assets and our customer relationship intangible asset in the United Kingdom. The first nine months of fiscal 2024 includes $3.0 million of accelerated depreciation of fixed assets related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The first nine months of fiscal 2024 also includes a $1.2 million gain related to the settlement of the Torreón, Mexico lease obligation on previously impaired assets. LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURESSEGMENT INFORMATION Quarter Ended Year Ended(Amounts in thousands) 4/26/2025 % of sales 4/27/2024 % of sales 4/26/2025 % of sales 4/27/2024 % of salesGAAP operating income (loss) Wholesale segment $10,120 2.5% $31,709 8.1% $82,213 5.6% $99,373 6.9%Retail segment 32,414 13.1% 32,170 14.1% 105,417 11.7% 111,682 13.1%Corporate and Other (13,007) N/M (13,782) N/M (51,793) N/M (60,259) N/MConsolidated GAAP operating income $29,527 5.2% $50,097 9.1% $135,837 6.4% $150,796 7.4% Adjusted items affecting operating income Wholesale segment $23,885 $1,729 $24,052 $7,715 Retail segment — 89 140 89 Corporate and Other 199 199 797 798 Consolidated adjusted items affecting operating income $24,084 $2,017 $24,989 $8,602 Adjusted operating income (loss) Wholesale segment $34,005 8.5% $33,438 8.5% $106,265 7.2% $107,088 7.4%Retail segment 32,414 13.1% 32,259 14.2% 105,557 11.7% 111,771 13.1%Corporate and Other (12,808) N/M (13,583) N/M (50,996) N/M (59,461) N/MConsolidated adjusted operating income $53,611 9.4% $52,114 9.4% $160,826 7.6% $159,398 7.8% N/M - Not Meaningful

La-Z-Boy Incorporated Reports Strong Fourth Quarter and Full Year Results; Sales Growth Across All Segments for the Year and Strong Operating Cash Flow Performance

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