What changed in this filing

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Item 1. Business

2025-06-17 compared with 2024-06-17 · 89 added, 92 removed, 141 unchanged (56% of the section changed)

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Today, our La-Z-Boy brand is one of the most recognized brands in the furniture industry.

We are the leading global producer of reclining chairs and one of the largest manufacturer/distributors of residential furniture in the United States .

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 ® stores retail network is the third largest retailer of single-branded furniture in the United States .

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

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

• Five major manufacturing locations and 15 distribution centers in the United States and three facilities in Mexico to support our speed-to-market and customization strategy

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

• A wholesale sales office that is responsible for distribution of our product in the United Kingdom and Ireland

• An upholstery manufacturing business in the United Kingdom

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

• 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

• 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

We also participate in two consolidated joint ventures in Thailand that support our international businesses:

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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;

to furniture retailers or distributors in the United States, Canada, and approximately 50 other countries, including the United Kingdom, Australia, China, 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.

• The centerpiece of our retail distribution strategy is our network of 355 La-Z-Boy Furniture Galleries ® stores and 528 La-Z-Boy Comfort Studio ® locations, each dedicated to marketing our La-Z-Boy branded products.

We consider this dedicated space to be "proprietary."

• The centerpiece of our retail distribution strategy is our network of 366 La-Z-Boy Furniture Galleries ® stores, over 500 La-Z-Boy Comfort Studio ® locations, and over 500 La-Z-Boy branded space locations, each dedicated to marketing our La-Z-Boy branded products.

◦ La-Z-Boy Furniture Galleries ® 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 203 of the La-Z-Boy Furniture Galleries ® stores, while the remainder are independently owned and operated.

◦ La-Z-Boy Comfort Studio ® locations are defined spaces within larger independent retailers that are dedicated to displaying and selling La-Z-Boy branded products.

All 528 La-Z-Boy Comfort Studio ® locations are independently owned and operated.

◦ In total, we have approximately 7.6 million square feet of proprietary floor space dedicated to selling La-Z-Boy branded products in North America.

◦ La-Z-Boy Comfort Studio ® 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 ® locations and La-Z-Boy branded space locations are independently owned and operated.

◦ 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 ® stores and La-Z-Boy Comfort Studio ® locations.

◦ We also have approximately 2.6 million square feet of floor space outside of the United States and Canada dedicated to selling La-Z-Boy branded products.

• Our other brands, England, American Drew, Hammary, and Kincaid enjoy distribution through many of the same outlets, with slightly over half of Hammary’s sales originating through the La-Z-Boy Furniture Galleries ® store network.

• 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 ® store network.

◦ Kincaid and England have their own dedicated proprietary in-store programs with 662 outlets and approximately 1.9 million square feet of proprietary floor space.

• In total, our proprietary floor space includes approximately 12.3 million square feet worldwide.

• Joybird sells product primarily online and has 12 small-format stores in key urban markets.

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Our Wholesale segment manufactures and imports upholstered and casegoods (wood) furniture and sells directly to La-Z-Boy Furniture Galleries ® stores, operators of La-Z-Boy Comfort Studio ® locations, branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

We have provided additional detailed information regarding our segments and their products in Note 17, Segment Information,

to our consolidated financial statements and Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, both of which are included in this report.

We have provided additional detailed information regarding our segments and their products in Note 16, Segment Information, to our consolidated financial statements and Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, both of which are included in this report.

Raw Materials and Parts

The principal raw materials and parts used for manufacturing that are purchased are cover (primarily fabrics and leather), polyester batting and polyurethane foam for cushioning and padding, lumber and plywood for frames, steel for motion mechanisms, electrical components for power units and various other metal components for fabrication of product.

We purchase most of our polyurethane foam from three suppliers, which have several facilities across the United States.

We purchase most of our polyurethane foam from three suppliers, which have several facilities across the United States and the vast majority of our polyester batting is also sourced within the United States.

We purchase cover from a variety of sources, but we rely on a limited number of major suppliers.

We purchase more than half of our cover in a raw state (fabric rolls or leather hides) from suppliers in multiple countries including China, the United States, and Brazil, then cut and sew it into cover in our cut and sew facilities in Mexico.

We purchase approximately two-thirds of our cover in a raw state (fabric rolls or leather hides) from suppliers in multiple countries including China, the United States, Vietnam and Brazil.

Fabric and leather are primarily imported directly into Mexico where it is then cut and sewn into cover in our cut and sew facilities.

We purchase the remainder of our cut and sewn leather and fabric kits from three main suppliers primarily from China and Vietnam.

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We manage our Asian supply chain through our global trading company in Hong Kong, which works to identify efficiencies and savings opportunities, while verifying La-Z-Boy quality standards are being adhered to and managing the relationships with our Asian suppliers.

During fiscal 2024, the cost of materials and parts used for manufacturing moderated and began to stabilize relative to the volatility experienced in prior years as a result of the supply chain disruptions created by the COVID-19 pandemic.

As we begin fiscal 2025, we anticipate that prices of such materials and parts will remain relatively consistent with those seen at the end of fiscal 2024, with potential increases due to economic volatility and price and wage inflation related to our core materials.

To the extent that we experience changes in our cost of materials and parts, we may adjust our selling prices or assess material surcharges, accordingly.

During fiscal 2025, the cost of materials and parts used for manufacturing decreased across several categories.

In fiscal 2026, we anticipate that prices of such materials and parts will remain relatively consistent with those seen at the end of fiscal 2025, with potential increases due to economic volatility, tariffs and inflation related to our core materials.

To the extent that we experience changes in our cost of materials and parts, we may explore alternative sourcing, adjust our selling prices or assess material surcharges, or take other actions, accordingly.

However, in the event of rising costs, increases in selling prices or implementation of surcharges may not fully mitigate the impact of raw material cost increases, which could adversely impact operating profits.

Finished Goods Imports

Imported finished goods represented 6% and 7% of our consolidated sales in fiscal 2024 and 2023, respectively.

In fiscal 2024, we purchased approximately 75% of this imported product from six suppliers based in Vietnam.

Imported finished goods represented 6% of our consolidated sales in fiscal 2025 and 2024.

In fiscal 2025, we purchased over 90% of this imported product from Vietnam, with roughly half coming from three major suppliers.

We use these suppliers primarily to leverage our buying power, to control quality and product flow, and because their capabilities align with our product design needs.

If any of these suppliers experience financial or other difficulties, we could experience disruptions in our product flow until we obtain alternate suppliers, which could be lengthy due to the longer lead time required for sourced wood furniture from Asian manufacturers.

The prices we paid for imported products, including associated transportation costs, decreased throughout most of 2024 compared with fiscal 2023.

While ocean freight costs decreased during the first half of the year, rates rose near the end of our fiscal year as a result of supply challenges in global shipping routes.

In fiscal 2025, while we anticipate our product costs will be relatively flat overall, we expect slight increases in ocean freight costs due to continued container transit challenges in these global shipping routes.

The prices we paid for imported products, including associated transportation, increased during 2025 compared with fiscal 2024, mainly due to higher ocean freight costs as a result of supply challenges in global shipping routes.

In fiscal 2026, while we expect ocean freight to stabilize and be relatively consistent with fiscal 2025, we anticipate higher overall product costs as a result of geopolitical uncertainties around trade policy and tariffs.

Tariff Exposure

In fiscal 2025, approximately 90% of the upholstered units sold in North America were produced in the United States.

Of the remainder, most were produced in Mexico and were originating under the United States-Mexico-Canada Agreement ("USMCA").

This has been our supply chain design throughout history to support our businesses by offering customized products to consumers in a short time period.

These supply chain operations allow us to mitigate the impact of tariffs on imported goods.

While a significant portion of our raw cover is sourced from China, it is primarily imported directly into Mexico where it is converted and substantially transformed under the USMCA rules of origin.

The vast majority of the products produced and exported out of Mexico are USMCA compliant.

While we remain subject to tariffs on Chinese products directly imported into the United States, the exposure to our cost of goods in fiscal 2025 was minimal.

With regards to our imported finished goods, while the vast majority of our imported casegoods product is sourced directly from Vietnam, given the size of this business relative to the entire Company, the exposure to our cost of goods in fiscal 2025 was also minimal.

We continue to monitor changes to global trade policies, remaining agile with the ability to shift our sourcing and production, adjust our selling prices or assess material surcharges, or take other actions, as necessary.

Seasonal Business

Our business has historically displayed seasonal patterns driven by consumer behavior with demand highest in the winter months as discretionary spend tends to shift toward travel and leisure activities during the summer months.

For our wholesale

business, our fiscal fourth quarter has historically had the highest volume of delivered sales relative to other quarters.

For our retail businesses, which includes our company-owned retail stores, our fiscal third quarter typically has the highest volume of delivered sales relative to other quarters.

For our wholesale business, our fiscal fourth quarter has historically had the highest volume of delivered sales relative to other quarters.

For our retail businesses, which includes our company-owned retail stores, our fiscal third and fourth quarters typically have the highest volume of delivered sales relative to other quarters.

In a typical year, we schedule production to maintain consistent manufacturing activity throughout the year whenever possible.

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Also driven by the seasonal slowdown in the summer, each of our retail businesses typically experience their lowest sales in our fiscal first quarter.

During fiscal 2024, we experienced our largest sales in the fourth quarter for both our wholesale and retail businesses, which we believe was consistent with overall trends in the furniture industry.

We therefore do not believe that this is an indicator that our seasonal trends are changing for our retail businesses and anticipate typical seasonality for both our wholesale and retail businesses in fiscal 2025.

During fiscal 2025, we experienced our largest sales in the fourth quarter for both our wholesale and retail businesses, which we believe was consistent with overall trends in the furniture industry and we anticipate typical seasonality for both our wholesale and retail businesses in fiscal 2026.

Economic Cycle and Purchasing Cycle

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Casegoods products, in contrast, are longer-lived and frequently purchased in groupings or "suites," resulting in a much larger cost to the consumer.

As a result, casegoods sales are more sensitive to economic conditions, including growth or a slowdown in the housing market, whereas upholstered furniture normally exhibits a less volatile sales pattern over an economic cycle.

As a result, casegoods sales are more sensitive to economic conditions, including growth or a slowdown in the housing market, whereas upholstered furniture, while still impacted, may exhibit a less volatile sales pattern over an economic cycle.

Practices Regarding Working Capital Items

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For our casegoods business within our Wholesale segment, we import wood furniture from Asian vendors, resulting in long lead times on these products.

To address these long lead times and meet our customers' delivery requirements, we typically maintain higher levels of finished goods inventory in our warehouses, as a percentage of sales, of our casegoods products than our upholstery products.

To address these long lead times and meet our customers' delivery requirements, we typically

maintain higher levels of finished goods inventory in our warehouses, as a percentage of sales, of our casegoods products than our upholstery products.

Our company-owned La-Z-Boy Furniture Galleries ® stores have finished goods inventory at the stores for display purposes.

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Our inventory decreased $8.0 million as of year end fiscal 2025 compared with year end fiscal 2024 as we continue to stabilize inventory levels and align production with incoming order trends.

We actively manage our inventory levels on an ongoing basis to ensure they are appropriate relative to our sales volume, while maintaining our focus on service to our customers.

We actively manage our inventory levels on an ongoing basis to ensure they are appropriate relative to our sales volume, supporting our focus on comfortable custom furniture with quick speed to delivery.

Accounts Receivable:

Our accounts receivable increased $13.7 million as of year end fiscal 2024 compared with year end fiscal 2023, primarily reflecting higher sales from our Wholesale business to external dealers during the fourth quarter of fiscal 2024 compared with same period a year ago.

Additionally, our allowance for receivable credit losses was $0.3 million higher at the end of fiscal 2024 compared with the end of fiscal 2023 reflecting a higher receivable balance.

We monitor our customers' accounts, limit our credit exposure to certain independent dealers and strive to decrease our days' sales outstanding where possible.

Our accounts receivable increased $0.3 million as of year end fiscal 2025 compared with year end fiscal 2024, primarily reflecting higher sales to our wholesale customers.

Additionally, our allowance for receivable credit losses at the end of fiscal 2025 was relatively flat compared with the end of fiscal 2024.

We monitor our customers' accounts, limit our credit exposure to certain independent dealers, and strive to decrease our days' sales outstanding.

Accounts Payable:

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We collect a deposit from our customers at the time a customer order is placed in one of our company-owned retail stores or through our websites, www.la-z-boy.com and www.joybird.com.

Customer deposits decreased $17.0 million as of fiscal year end 2024 compared with fiscal year end 2023, primarily due to a slight reduction in backlog.

Customer deposits decreased $15.9 million as of fiscal year end 2025 compared with fiscal year end 2024, primarily due to a reduction in backlog resulting from improved delivery lead times driven by continued operational efficiencies in our manufacturing and distribution processes.

We sell directly to end consumers through our company-owned La-Z-Boy Furniture Galleries ® stores that make up our Retail segment, our small-format Joybird stores, and our websites, www.la-z-boy.com and www.joybird.com.

Sales in our Wholesale segment are primarily to third-party furniture retailers.

While mainly located throughout the United States and Canada, we also have customers located in various other countries, including the United Kingdom, China, Australia, South Korea and New Zealand.

We have formal agreements with many furniture retailers for them to display and merchandise products from one or more of our operating units and sell them to consumers in dedicated retail space, either in stand-alone stores or dedicated proprietary galleries, studios or branded spaces within their stores.

We consider this dedicated space to be "proprietary." For our Wholesale segment, our fiscal 2024 customer mix based on sales was approximately 60% proprietary, 10% major dealers (large, regional retailers), and 30% other independent retailers.

Sales in our Wholesale segment are primarily to third-party furniture retailers, which also includes independently-owned La-Z-Boy Furniture Galleries ® .

While mainly located throughout the United States and Canada, we also have customers located in various other countries, including the United Kingdom, Australia, China and New Zealand.

We consider this dedicated space to be "proprietary." In addition, we display a curated selection of La-Z-Boy branded products within larger independent dealers, designated as La-Z-Boy branded spaces.

For our Wholesale segment, our fiscal 2025 customer mix based on sales was approximately 60% proprietary, 10% major dealers (large, regional retailers), and 30% other independent retailers.

The success of our product distribution model relies heavily on having retail floor space that is dedicated to displaying and marketing our products.

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In fiscal 2026, the La-Z-Boy Furniture Galleries ® store network further plans to open 13 to 18 stores and relocate or remodel 20 to 25 stores, all of which will feature our latest store designs.

Additionally, during fiscal 2025 we plan to open or update approximately 100 La-Z-Boy Comfort Studio ® locations as well as 40 branded space locations.

Additionally, during fiscal 2026 we plan to open or update approximately 80 La-Z-Boy Comfort Studio ® locations as well as over 300 branded space locations.

Independent dealers for our proprietary La-Z-Boy Furniture Galleries ® store network provide distribution in specific geographical areas and enable us to concentrate our marketing to a dedicated product line across the entire network benefitting La-Z-Boy, these dealers, and our consumers.

It also allows dealers in this proprietary group to take advantage of best practices, with which other proprietary dealers have succeeded, and we facilitate forums for these dealers to share them.

These La-Z-Boy Furniture Galleries ® stores provide our consumers a full-service shopping experience with a large variety of products, knowledgeable sales associates, and design service consultants.

These La-Z-Boy

Furniture Galleries ® stores provide our consumers a full-service shopping experience with a large variety of products, knowledgeable sales associates, and design service consultants.

Orders and Backlog

We typically build upholstery units based on specific orders, either for dealer stock or to fill consumers' custom orders.

We import casegoods product primarily to fill our internal orders, rather than customer or consumer orders, resulting in higher finished goods inventory on hand as a percentage of sales.

We typically build upholstery units based on specific orders, either for dealer stock or to fill consumers' custom orders, whereas we import casegoods product primarily to fill our internal orders, rather than customer or consumer orders.

We define backlog as any written order that has not yet been delivered, whether to an independent furniture retailer, an independently-owned La-Z-Boy Furniture Galleries ® store, or the end consumer through our company-owned La-Z-Boy Furniture Galleries ® stores.

Historically, the size of our backlog at a given time varies and may not be indicative of our future sales and, therefore, we do not rely entirely on backlogs to predict future sales.

Our wholesale backlog was $136.6 million as of April 27, 2024.

This represents a 10% decrease from a fiscal 2023 year end backlog of $151.3 million, which was revised to reflect an adjustment to the dollar impact of cancellations that occurred during fiscal 2023.

At the end of fiscal 2023, backlog and lead times had generally returned to pre-pandemic levels and the slight decrease in fiscal 2024 was mainly due to shipments outpacing incoming orders as a result of lower industry-wide demand.

Our wholesale backlog was $119.5 million as of April 26, 2025, a 13% decrease compared with our fiscal 2024 year end backlog of $136.6 million.

The decrease in fiscal 2025 was primarily due to improved delivery lead times driven by continued operational efficiencies in our manufacturing and distribution processes.

We anticipate our backlog will remain relatively stable in fiscal 2026.

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We license the use of the La-Z-Boy trademark to certain international partners and dealers outside of North America.

We also license the use of the La-Z-Boy trademark on contract office furniture, outdoor furniture, and non-furniture products, as these arrangements enhance our brand awareness, broaden the perceptions of La-Z-Boy, and create visibility of the La-Z-Boy brand in channels outside of the residential furniture industry.

We also license the use of the La-Z-Boy trademark on contract office furniture, outdoor furniture, furniture for recreational vehicles, and certain non-furniture products, as these arrangements enhance our brand awareness, broaden the perceptions of La-Z-Boy, and create visibility of the La-Z-Boy brand in channels outside of the residential furniture industry.

In addition, we license to our branded dealers the right to use our La-Z-Boy trademark in connection with the sale of our products and related services, on their signs, and in other ways, which we consider to be a key part of our marketing strategies.

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We employed approximately 10,600 full-time equivalent employees at the end of fiscal 2025, compared with approximately 10,200 employees at the end of fiscal 2024.

The decrease in headcount was primarily due to the initiative to drive improved efficiencies through optimized staffing levels at our Mexico operations.

The increase in headcount was primarily driven by additional employees in our manufacturing operations and growth in our retail business.

As of the end of fiscal 2025 we employed approximately 8,000 employees in our Wholesale segment, 1,800 in our Retail segment, 500 in our Joybird business, with the remaining employees being corporate personnel.

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Purpose and Values

At La-Z-Boy, we believe in the transformational power of comfort.

At La-Z-Boy Incorporated, we believe in the transformational power of comfort.

We provide an excellent consumer experience, create high quality products and empower people to transform rooms, homes and communities with comfort.

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Sustainability

As we build the La-Z-Boy of tomorrow, our goal is to make the world a better place through the transformational power of comfort.

Aligned with our core values, we embrace curiosity for sustainable design, operate with compassion for a sustainable planet, and empower courage for a sustainable culture.

Sustainable Design .

We embrace curiosity and our inquisitiveness helps us identify innovative opportunities for our products that uphold our commitment to quality, rely on sustainable materials and drive best practices in our supplier partnerships.

Sustainable Planet .

We strive to operate La-Z-Boy with compassion for the environment.

We are committed to responsible stewardship and integrate environmentally sound and sustainable practices into our daily decisions.

We work to reduce emissions, increase recycling efforts, and conserve water in all areas of our business.

Sustainable Culture .

At La-Z-Boy, we support our employees so they can make courageous choices and help our business thrive.

For La-Z-Boy Incorporated, embracing sustainability is much more than a means to do good - it is a key principle to ensure long-term success in an ever-changing industry and dynamic global economy.

With sustainability as a core foundation, we preserve resources and natural habitat, extend the impact of our investments, ensure regulatory compliance, and develop meaningful connections with employees and stakeholders.

Our strategic initiatives include three key principles that align sustainability focus and company operations to drive long-term success.

• Lean Manufacturing .

Production aimed at maximizing yield, minimizing waste of all forms, optimizing efficiencies, and providing benefits to our customers, our shareholders and the planet.

• Sustainable and Agile Supply Chain.

Ensuring availability of necessary materials and services while adhering to environmental and social standards.

• Human-Centered Approach .

Leading through compassion by focusing on stakeholder collaboration and employee well-being, awareness, and competence.

At La-Z-Boy Incorporated, we support our employees so they can make courageous choices and help our business thrive.

Our people practices are linked to our sustainability initiatives.

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Compliance and Ethics

La-Z-Boy is dedicated to upholding the highest ethical standards and working with honesty and integrity in all aspects of our business operations.

La-Z-Boy Incorporated is dedicated to upholding the highest ethical standards and working with honesty and integrity in all aspects of our business operations.

Our Code of Conduct provides a clear and thorough ethics standard for all employees, officers, and directors with respect to interactions with customers, vendors, and other staff.

Employees also undergo annual training on ethics and the Code of Conduct.

Employees also undergo annual

training on ethics and the Code of Conduct.

We also maintain an Ethics Hotline to make it easy for employees and suppliers to report any concerns.

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Employees may also communicate any concerns through a dedicated online portal.

Diversity, Inclusion and Belonging

We believe in creating and fostering a workplace in which all our employees feel valued, included, and empowered to do their best work and contribute their ideas and perspectives.

We are committed to recruiting and retaining diverse talent so that our workforce better reflects the communities in which we operate our business globally.

We recognize that our employees’ unique backgrounds, experiences and perspectives enable us to create the optimal work environment and deliver on our mission.

Aligning with our purpose and values, we intend to continue to be curious, courageous, and compassionate in our efforts to foster an environment that attracts the best talent, values diversity of life experiences and perspectives, and encourages innovation to accelerate the transformational power of comfort.

Our diversity, inclusion and belonging initiatives include:

• Integrating diversity, inclusion and belonging into our overall corporate strategy and developing impactful practices and initiatives to advance our Company’s diversity, inclusion and belonging journey;

• Leveraging our Diversity, Inclusion and Belonging Council to provide enterprise-wide leadership focused on supporting all our employees, developing training and learning opportunities for our employees on diversity, unconscious bias and other topics, and creating sustainable plans to increase diversity in talent acquisition;

• Expanding our support of employee resource groups ("ERGs"), which include groups focused on Multicultural, Pride (LGBTQ+), Working Parents & Caregivers, Women, and Salute (Armed Forces).

Our ERGs provide learning and mentorship experiences for our diverse employees, supporting our objective of creating diversity awareness across our organization, and helping our employees use their collective voices to positively impact our Company and the communities in which we operate our business and live;

• Revisiting, assessing and implementing changes to our processes, in an effort to continue mitigating unconscious bias and enhancing our inclusion recruiting strategy;

• Enhancing and expanding our supplier inclusion network;

• Expanding inclusive leaders training throughout the organization;

• Creating space for individuals to share their perspective, values and voice to our global population through employee written articles, our internal podcast, and multiple video series on our internal communications platform and;

• Demonstrating our Company’s commitment at the highest levels of leadership, including having our President and Chief Executive Officer sign the CEO Action for Diversity & Inclusion™ pledge to advance diversity and inclusion in the workplace

Culture of Belonging

At the heart of our workplace is a Culture of Belonging - a commitment to ensure that every employee feels valued, heard, and empowered to bring their full selves to work.

We believe that when people feel a true sense of belonging and purpose, they thrive, and so does our organization.

We are intentional about building a team that reflects the makeup of the global communities we serve.

We know that the unique backgrounds, lived experiences, and perspectives of our employees make us stronger, more innovative, and better equipped to deliver on our mission.

Rooted in our purpose and values, we strive to be curious, courageous, and compassionate in all that we do.

These qualities guide us as we continue to foster a workplace that not only attracts exceptional talent but also celebrates differences and encourages bold thinking to unlock the transformational power of comfort.

Safety and Health

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We work to forge relationships with agencies, such as the Occupational Safety and Health Administration (OSHA), to understand how we can best adhere to health and safety practices.

Additionally, the National Safety Council (NSC) has recognized La-Z-Boy with multiple awards for safety performance and leadership throughout the Company’s history.

This includes our recognition as a seven-time recipient of the Corporate Culture of Safety Award.

Additionally, the National Safety Council (NSC) has recognized La-Z-Boy Incorporated with multiple awards for safety performance and leadership throughout the Company’s history.

This includes our recognition as an eight-time recipient of the Corporate Culture of Safety Award.

Training and Development

We encourage employee growth, curiosity, and courage.

We provide our workforce, in all areas of our business,

opportunities for both personal and career advancement, such as offering on-the-job trainings to help employees be more

effective in both current and future roles.

This includes training in the operations and retail environment to maintain high-quality standards as we make and sell our products.

We strive to promote employees internally and to provide new managers with the skills necessary to succeed.

Further, we have a leadership development program to train employees who are new to managing teams.

We are committed to fostering a workplace that supports development aligned with our values of compassion, curiosity, and courage.

Across all areas of our business, we provide opportunities for personal and professional development that empower our employees to thrive in their current roles and prepare for future advancement.

We offer on-the-job training, particularly in our operations and retail environments, to ensure employees have the tools and knowledge to uphold our high standards for product quality and customer experience.

In addition, we host monthly competency-building training courses open to all employees, designed to strengthen core capabilities and support career growth across functions.

We prioritize internal promotion and are dedicated to equipping new managers with the foundational skills needed to succeed in leadership roles.

Our structured leadership development program prepares employees who are new to managing teams by focusing on the behaviors and skills essential to leading with impact.

Employee Town Halls and Employee Engagement

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Community Giving

Throughout our 97-year history, giving back to our communities has been woven through La-Z-Boy’s culture following the example set by our founders.

When it comes to giving, our vision is to improve the lives of others by developing exceptional

programs based on partnerships where employees feel a sense of connection and pride in their communities and our mission is to enhance the quality of life in the communities in which we live and serve through leadership, financial contributions, and volunteer efforts.

Throughout our 98-year history, giving back to our communities has been woven through La-Z-Boy Incorporated’s culture following the example set by our founders.

When it comes to giving, our vision is to improve the lives of others by developing exceptional programs based on partnerships where employees feel a sense of connection and pride in their communities and our

mission is to enhance the quality of life in the communities in which we live and serve through leadership, financial contributions, and volunteer efforts.

Our philanthropic initiatives include the La-Z-Boy Foundation, local community involvement, disaster relief, and our signature charity, Ronald McDonald House Charities.

La-Z-Boy is honored to be the official furniture provider for Ronald McDonald House Charities.

Throughout fiscal 2024, La-Z-Boy has continued our support of providing furniture and financial contributions to non-profit organizations with special emphasis on arts/culture/humanities, community enrichment, education, and health and human services.

La-Z-Boy Incorporated is honored to be the official furniture provider for Ronald McDonald House Charities.

Throughout fiscal 2025, La-Z-Boy Incorporated has continued our support of providing furniture and financial contributions to non-profit organizations with special emphasis on arts/culture/humanities, community enrichment, education, and health and human services.

Our employees further exemplify the spirit of giving through leadership and volunteer efforts in their own communities, and for numerous non-profit organizations, which include the United Way, Relay for Life, Habitat for Humanity, and others.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business