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Item 1. Financial Statements

2025-11-18 compared with 2025-08-19 · 175 added, 59 removed, 472 unchanged (33% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENT OF INCOME

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands, except per share data) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

19 unchanged sentences

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

2 unchanged sentences

Currency translation adjustment ( 785 ) 1,612 371 3,145

Net unrealized gain on marketable securities, net of tax 13 113

Net unrealized gain (loss) on marketable securities, net of tax 124 ( 17 ) 137 96

Net pension amortization, net of tax 18 16 37 31

Total other comprehensive income 1,188 1,661

Total other comprehensive income (loss) ( 643 ) 1,611 545 3,272

Total comprehensive income before noncontrolling interests 28,347 31,464 47,832 59,929

10 unchanged sentences

Inventories, net 225,566 255,285

Assets held for sale 29,436 —

Other current assets 91,443 82,421

29 unchanged sentences

CONSOLIDATED STATEMENT OF CASH FLOWS

Quarter Ended

Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025 10/26/2024

29 unchanged sentences

Dividends paid to shareholders ( 18,129 ) ( 16,731 )

Dividends paid to minority interest joint venture partners (1) — ( 1,414 )

Net cash used for financing activities ( 37,555 ) ( 61,693 )

5 unchanged sentences

Capital expenditures included in payables $ 5,875 $ 4,420

(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.

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

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At July 26, 2025 $ 41,207 $ 388,546 $ 589,209 $ ( 2,795 ) $ 11,855 $ 1,028,022

Net income — — 28,858 — 132 28,990

Other comprehensive income (loss) — — — ( 523 ) ( 120 ) ( 643 )

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 65 255 ( 1 ) — — 319

Repurchases of 23 shares of common stock

( 23 ) ( 309 ) ( 475 ) — — ( 807 )

Stock option and restricted stock expense — 4,823 — — — 4,823

Dividends declared and paid ($ 0.22 /share)

— — ( 9,117 ) — — ( 9,117 )

Dividends declared not paid ($ 0.22 /share)

— — ( 130 ) — — ( 130 )

At October 25, 2025 $ 41,249 $ 393,315 $ 608,344 $ ( 3,318 ) $ 11,867 $ 1,051,457

(Unaudited, amounts in thousands, except per share data) Common

16 unchanged sentences

At July 27, 2024 $ 42,015 $ 371,421 $ 590,308 $ ( 4,535 ) $ 11,267 $ 1,010,476

Net income (loss) — — 30,037 — ( 184 ) 29,853

Other comprehensive income — — — 923 688 1,611

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 99 1,920 ( 6 ) — — 2,013

Repurchases of 467 shares of common stock

( 467 ) ( 1,955 ) ( 17,222 ) — — ( 19,644 )

Stock option and restricted stock expense — 5,872 — — — 5,872

Dividends declared and paid ($ 0.20 /share) (1)

— — ( 8,360 ) — ( 1,414 ) ( 9,774 )

Dividends declared not paid ($ 0.20 /share)

— — ( 125 ) — — ( 125 )

At October 26, 2024 $ 41,647 $ 377,258 $ 594,632 $ ( 3,612 ) $ 10,357 $ 1,020,282

(1) Non-controlling interests 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.

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

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ASU Description Adoption Date

ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

ASU 2025-05 Financial Instruments - Credit Losses (Topic 326):

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Disaggregation of Income Statement Expenses Fiscal 2028

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

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

Prior Year Acquisitions

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

Prior to the Retail acquisition, we licensed to the counterparty the exclusive right to own and operate the La-Z-Boy Furniture Galleries ® store (and to use the associated trademarks and trade name) in its market, and we reacquired these rights when we consummated the transaction.

These required rights are indefinite-lived because our retailer agreements are perpetual agreements that have no specific expiration date and no renewal options.

The effective settlement date of this arrangement resulted in no settlement gain or loss as the contractual terms were at market.

Each of the following Retail acquisitions completed in fiscal 2025 reflects a core component of our strategic priorities, which is to grow our company-owned retail business and leverage our integrated retail model (where we earn a combined profit on both the wholesale and retail sales) in suitable geographic markets, alongside the existing La-Z-Boy Store network.

Prior to each Retail acquisition completed in fiscal 2025, we licensed to the counterparty the exclusive right to own and operate La-Z-Boy Stores (and to use the associated trademarks and trade name) in each of their respective markets, and we reacquired these rights when we consummated the transaction.

These reacquired rights are indefinite-lived because our retailer agreements are perpetual agreements that have no specific expiration date and no renewal options.

The effective settlement date of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.

For federal income tax purposes, we amortize and deduct the indefinite-lived intangible assets and goodwill over 15 years.

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

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

Melbourne and Cocoa, Florida Acquisition

On September 10, 2024, we completed our acquisition of the Melbourne and Cocoa, Florida businesses that operate two independently owned La-Z-Boy Stores and one distribution center for $ 11.4 million, inclusive of customary adjustments.

The acquisition also included the purchase of buildings and land for both stores and the distribution center.

We paid total cash of $ 11.3 million during the second and third quarters of fiscal 2025 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 0.9 million related to the reacquired rights described above.

We also recognized $ 1.7 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired stores and future benefits of these synergies.

Davenport, Iowa Acquisition

On July 22, 2024, we completed our acquisition of the Davenport, Iowa business that operates one independently owned La-Z-Boy Furniture Galleries ® store for $ 7.4 million, inclusive of customary adjustments.

On July 22, 2024, we completed our acquisition of the Davenport, Iowa business that operates one independently owned La-Z-Boy Store for $ 7.4 million, inclusive of customary adjustments.

We paid total cash of $ 6.9 million during the first and second quarters of fiscal 2025 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

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Total inventories $ 225,566 $ 255,285

Assets Held for Sale

During the second quarter of fiscal 2026, the Company committed to a plan to dispose a portion of our Casegoods wholesale business (the “disposal group”) within the next 6 months.

Assets and liabilities are classified as held for sale when management commits to a plan to sell a disposal group and concludes that it meets all other relevant criteria in accordance with U.S.

As of October 25, 2025, we met the criteria to classify the following assets as held for sale:

(Unaudited, amounts in thousands) 10/25/2025

Inventory $ 23,333

Property, plant and equipment, net 4,948

Intangible assets 1,155

Total assets held for sale $ 29,436

Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell and are no longer depreciated or amortized.

Any loss resulting from the measurement is recognized in the period the held for sale criteria are met while gains are not recognized until the date of sale.

Upon classifying these assets as held for sale, we concluded that the total carrying value of the disposal group did not exceed its fair value and no impairment was recorded.

The disposal group does not meet the requirements to be classified as discontinued operations as the disposition of a portion of the Casegoods business does not represent a strategic shift that will have a material effect on the Company’s operations and financial results.

The Casegoods business currently operates within the Wholesale segment.

Goodwill and Other Intangible Assets

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Reportable Segment/Unit Reporting Unit Related Acquisition

Wholesale Segment United Kingdom (1)

Wholesale business in the United Kingdom and Ireland

Wholesale Segment United Kingdom (1)

La-Z-Boy United Kingdom Manufacturing (Furnico)

Retail Segment Retail La-Z-Boy Furniture Galleries ® stores

Retail Segment Retail Independent La-Z-Boy Stores

Corporate and Other Joybird Joybird

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

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

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Translation adjustment — ( 34 ) — ( 34 )

Balance at July 26, 2025 (1)

Balance at October 25, 2025 (1)

$ — $ 150,110 $ 55,446 $ 205,556

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Indefinite-lived

Retail Segment Reacquired rights to own and operate La-Z-Boy Furniture Galleries ® stores

Indefinite-lived

Retail Segment Reacquired rights to own and operate La-Z-Boy Stores Indefinite-lived

Corporate and Other Joybird ® trade name

Amortizable over eight-year useful life

(1) Reclassified to assets held for sale during the second quarter of fiscal 2026.

Refer to Note 4, Assets Held for Sale, for further information.

The following summarizes changes in our intangible assets:

5 unchanged sentences

Translation adjustment — — ( 26 ) ( 26 )

Balance at July 26, 2025 $ 1,155 $ 798 $ 49,038 $ 50,991

Reclass to assets held for sale ( 1,155 ) — — ( 1,155 )

Balance at October 25, 2025 $ — $ 599 $ 48,982 $ 49,581

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

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The following table summarizes sales of marketable securities:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

2 unchanged sentences

Gross realized losses — — — ( 35 )

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

As of October 25, 2025, we held $ 6.5 million of fixed income marketable securities, classified as available-for-sale securities, all of which do not have a single contractual maturity date.

On October 15, 2021, we entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, the other agents and lenders named therein and the other parties thereto (as amended prior to July 1, 2025, the “Credit Agreement”).

5 unchanged sentences

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

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

As of October 25, 2025, we have no borrowings outstanding under the Credit Facility and we were in compliance with our financial covenants under the Credit Facility.

Product Warranties

4 unchanged sentences

Additionally, our Wholesale segment warranties cover labor costs relating to our parts for one year.

We provide a limited lifetime warranty against defects on a majority of the Joybird products, which are a part of our Corporate and Other results.

We also provide a limited lifetime warranty against defects on a majority of the Joybird products, which are a part of our Corporate and Other results.

For all our manufacturer warranties, the warranty period begins when the consumer receives our product.

1 unchanged sentence

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

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025

10/26/2024 10/25/2025 (1)

Balance as of the beginning of the period $ 29,110 $ 29,478 $ 29,940 $ 28,909

1 unchanged sentence

Settlements during the period ( 6,878 ) ( 8,342 ) ( 14,284 ) ( 16,673 )

Change in warranty policy (2)

( 5,606 ) — ( 5,606 ) —

Balance as of the end of the period $ 23,545 $ 29,552 $ 23,545 $ 29,552

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

(1) $ 16.9 million and $ 22.4 million is recorded in accrued expenses and other current liabilities as of October 25, 2025, and April 26, 2025, respectively, while the remainder is included in other long-term liabilities.

(2) During the second quarter of fiscal 2026, we implemented a change in which dealers are provided an upfront service allowance for certain labor and delivery costs that they cover under our Wholesale warranty program.

As part of this change, dealers provide these warranty services on La-Z-Boy products that they sell, and have previously sold, resulting in an overall reduction in our warranty liability.

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

1 unchanged sentence

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

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

1 unchanged sentence

Liability-based awards expense (1)

( 74 ) ( 57 ) ( 88 ) 104

Total stock-based compensation expense $ 4,749 $ 5,815 $ 8,155 $ 9,151

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Restricted Stock .

During the first quarter of fiscal 2026, we granted 263,509 shares of restricted stock units to employees and we also have restricted stock awards outstanding from previous grants.

During the first six months of fiscal 2026, we granted 263,509 shares of restricted stock units to employees and we also have restricted stock awards outstanding from previous grants.

We issue restricted stock at no cost to the employees and account for restricted stock awards as equity-based awards because when they vest, they will be settled in common shares.

We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards.

We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the

date our Compensation and Talent Oversight Committee of our board of directors approved the awards.

Restricted stock awards vest at 25 % per year, beginning one year from the grant date for a term of four years , with continued vesting upon retirement.

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We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur.

The weighted average fair value of the restricted stock that was awarded in the first quarter of fiscal 2026 was $ 38.24 per share, the market value of our common shares on the date of grant.

The weighted average fair value of the restricted stock that was awarded in the first six months of fiscal 2026 was $ 38.24 per share, the market value of our common shares on the date of grant.

Restricted Stock Units Issued to Directors.

During the second quarter of fiscal 2026, we granted 29,224 restricted stock units to our non-employee directors.

Restricted stock units granted to our non-employee directors are offered at no cost to the directors and restricted stock units granted following August 2022 vest on the earlier of the date a director ceases to be a member of the board (for any reason other than the termination of service for cause) or the one year anniversary of the grant date.

We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock.

We measure and recognize compensation expense for these awards based on the market price of our common shares on the date of grant.

The weighted-average fair value of the restricted stock units granted to our non-employee directors in the second quarter of fiscal 2026 was $ 36.96 per share.

Performance Shares.

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For shares that vest based on market conditions, we use a Monte Carlo valuation model to estimate each share’s fair value as of the date of grant.

The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine our

expected performance ranking relative to our peer group.

The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine our expected performance ranking relative to our peer group.

For shares that vest based on market conditions, we expense compensation cost over the vesting period regardless of whether the market condition is ultimately satisfied.

1 unchanged sentence

Stock Options.

We did not grant stock options to employees during the first quarter of fiscal 2026, but we have stock options outstanding from grants from prior years.

We did not grant stock options to employees during the first six months of fiscal 2026, but we have stock options outstanding from grants from prior years.

We account for stock options as equity-based awards because when they are exercised, they will be settled in common shares.

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Accumulated Other Comprehensive Loss

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

Activity in accumulated other comprehensive income (loss) for the quarters ended October 25, 2025, and October 26, 2024, is as follows:

(Unaudited, amounts in thousands) Translation adjustment Unrealized gain (loss) on marketable securities Net pension amortization and net actuarial gain (loss) Accumulated other comprehensive income (loss)

Balance at July 26, 2025 $ ( 760 ) $ 350 $ ( 2,385 ) $ ( 2,795 )

Changes before reclassifications ( 665 ) 169 — ( 496 )

Amounts reclassified to net income — ( 5 ) 25 20

Tax effect — ( 40 ) ( 7 ) ( 47 )

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 665 ) 124 18 ( 523 )

Balance at October 25, 2025 $ ( 1,425 ) $ 474 $ ( 2,367 ) $ ( 3,318 )

Balance at July 27, 2024 $ ( 2,597 ) $ 359 $ ( 2,297 ) $ ( 4,535 )

Changes before reclassifications 924 ( 21 ) — 903

Amounts reclassified to net income — ( 2 ) 21 19

Tax effect — 6 ( 5 ) 1

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated 924 ( 17 ) 16 923

Balance at October 26, 2024 $ ( 1,673 ) $ 342 $ ( 2,281 ) $ ( 3,612 )

Activity in accumulated other comprehensive income (loss) for the six months ended October 25, 2025, and October 26, 2024, is as follows:

Balance at April 26, 2025 $ ( 1,507 ) $ 337 $ ( 2,404 ) $ ( 3,574 )

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Other comprehensive income attributable to La-Z-Boy Incorporated 82 137 37 256

Balance at July 26, 2025 $ ( 760 ) $ 350 $ ( 2,385 ) $ ( 2,795 )

Balance at October 25, 2025 $ ( 1,425 ) $ 474 $ ( 2,367 ) $ ( 3,318 )

Balance at April 27, 2024 $ ( 3,804 ) $ 246 $ ( 2,312 ) $ ( 5,870 )

3 unchanged sentences

Other comprehensive income attributable to La-Z-Boy Incorporated 2,131 96 31 2,258

Balance at July 27, 2024 $ ( 2,597 ) $ 359 $ ( 2,297 ) $ ( 4,535 )

Balance at October 26, 2024 $ ( 1,673 ) $ 342 $ ( 2,281 ) $ ( 3,612 )

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

The components of noncontrolling interest were as follows:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

Balance as of the beginning of the period $ 11,855 $ 11,267 $ 11,353 $ 10,296

Net income 93 645

Other comprehensive income 409 326

Net income (loss) 132 ( 184 ) 225 461

Other comprehensive income (loss) ( 120 ) 688 289 1,014

Dividends distributed to joint venture minority partners — ( 1,414 ) — ( 1,414 )

Balance as of the end of the period $ 11,867 $ 10,357 $ 11,867 $ 10,357

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

Quarter Ended July 26, 2025 Quarter Ended July 27, 2024

Quarter Ended October 25, 2025 Quarter Ended October 26, 2024

(Unaudited, amounts in thousands) Wholesale Retail Corporate

8 unchanged sentences

Consolidated Net Sales $ 522,480 $ 521,027

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

Six Months Ended October 25, 2025 Six Months Ended October 26, 2024

(Unaudited, amounts in thousands) Wholesale Retail Corporate

and Other Total Wholesale Retail Corporate

and Other Total

Upholstered Furniture $ 560,633 $ 351,109 $ 52,972 $ 964,714 $ 568,285 $ 346,647 $ 60,263 $ 975,195

Casegoods Furniture 36,451 23,319 3,086 62,856 36,050 23,878 5,520 65,448

Delivery 76,605 14,836 4,152 95,593 78,819 15,475 4,276 98,570

48,707 39,929 9,714 98,350 31,643 37,934 10,736 80,313

Total $ 722,396 $ 429,193 $ 69,924 $ 1,221,513 $ 714,797 $ 423,934 $ 80,795 $ 1,219,526

Eliminations ( 206,804 ) ( 202,967 )

Consolidated Net Sales $ 1,014,709 $ 1,016,559

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

Upholstered Furniture - Includes revenue for upholstered furniture, such as recliners, sofas, loveseats, chairs, sectionals, modulars, and ottomans.

This revenue includes sales to La-Z-Boy Furniture Galleries ® stores (including company-owned stores), operators of La-Z-Boy Comfort Studio ® and branded space locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer.

This revenue includes sales to La-Z-Boy Stores (including company-owned stores), operators of La-Z-Boy Comfort Studio ® and branded space locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer.

Casegoods Furniture - Includes revenue for casegoods furniture typically found in a bedroom, such as beds, chests, dressers, nightstands and benches;

1 unchanged sentence

and furniture typically found throughout the home, such as cocktail tables, chairsides, sofa tables, end tables, and entertainment centers.

This revenue includes sales to La-Z-Boy Furniture Galleries ® stores (including company-owned stores), independent retailers, and the end consumer.

This revenue includes sales to La-Z-Boy Stores (including company-owned stores), independent retailers, and the end consumer.

Contract Assets and Liabilities.

8 unchanged sentences

$ 116,906 $ 105,474

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

(1) During the six months ended October 25, 2025, we recognized revenue of $ 100.0 million related to our contract liability balance at April 26, 2025.

Segment Information

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Our Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas and imports casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces.

The Wholesale segment sells directly to La-Z-Boy Furniture Galleries ® stores, operators of La-Z-Boy Comfort Studio ® and branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

The Wholesale segment sells directly to La-Z-Boy Stores, operators of La-Z-Boy Comfort Studio ® and branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

Retail Segment .

Our Retail segment consists of one operating segment comprised of our 205 company-owned La-Z-Boy Furniture Galleries ® stores.

Our Retail segment consists of one operating segment comprised of our 207 company-owned La-Z-Boy Stores.

The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other home furnishings accessories, to end consumers through these stores.

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

Quarter Ended July 26, 2025

Quarter Ended October 25, 2025

(Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated

10 unchanged sentences

Income before income taxes $ 39,564

Quarter Ended July 27, 2024

Quarter Ended October 26, 2024

(Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated

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Income before income taxes $ 40,524

Quarter Ended

Six Months Ended October 25, 2025

(Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated

Sales to external customers $ 518,901 $ 429,193 $ 66,615 $ — $ 1,014,709

Intersegment sales 203,495 — 3,309 ( 206,804 ) —

Total sales 722,396 429,193 69,924 ( 206,804 ) 1,014,709

Cost of sales 537,578 189,836 28,928 ( 181,968 ) 574,374

Gross profit 184,818 239,357 40,996 ( 24,836 ) 440,335

SG&A expenses 130,587 202,416 74,002 ( 24,836 ) 382,169

Operating income (loss) $ 54,231 $ 36,941 $ ( 33,006 ) $ — $ 58,166

Interest expense ( 230 )

Interest income 6,657

Other income (expense), net ( 639 )

Income before income taxes $ 63,954

Six Months Ended October 26, 2024

(Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated

Sales to external customers $ 515,003 $ 423,934 $ 77,622 $ — $ 1,016,559

Intersegment sales 199,794 — 3,173 ( 202,967 ) —

Total sales 714,797 423,934 80,795 ( 202,967 ) 1,016,559

Cost of sales 528,990 189,064 33,198 ( 178,684 ) 572,568

Gross profit 185,807 234,870 47,597 ( 24,283 ) 443,991

SG&A expenses 137,279 186,324 73,529 ( 24,283 ) 372,849

Operating income (loss) $ 48,528 $ 48,546 $ ( 25,932 ) $ — $ 71,142

Interest expense ( 309 )

Interest income 8,154

Other income (expense), net ( 2,497 )

Income before income taxes $ 76,490

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/25/25 10/26/24 10/25/25 10/26/24

24 unchanged sentences

Consolidated long-lived assets $ 1,065,086 $ 1,048,811

Our effective tax rate was 25.0 % for the quarter ended July 26, 2025 compared with 25.5 % for the quarter ended July 27, 2024.

Our effective tax rate was 26.7 % and 26.1 % for second quarter and six months ended October 25, 2025, respectively, compared with 26.3 % and 25.9 % for second quarter and six months ended October 26, 2024.

Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.

1 unchanged sentence

Under ASC 740, Income Taxes, the effects of changes in tax laws must be recognized in the period of enactment.

The Company is currently evaluating the potential impact of OBBBA, but based on a preliminary assessment, the provisions of the new law are not expected to have a material impact on the Company's consolidated financial statements.

Based on current assessments, the provisions of the new law are not expected to have a material impact on the Company's effective tax rate.

The OBBBA is expected to have a favorable impact on taxes payable due to accelerated tax deductions from the law changes relating to expensing of domestic research and experimental expenditures and changes to bonus depreciation

Earnings per Share

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

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands, except per share data) 10/25/2025 10/26/2024 10/25/2025 10/26/2024

11 unchanged sentences

We exclude the effect of options from our diluted share calculation when the weighted average exercise price of the options is higher than the average market price, since including the options' effect would be anti-dilutive.

For the quarter ended July 26, 2025, we did not exclude any outstanding options from the diluted share calculation.

For the quarter ended July 27, 2024, we excluded options to purchase 0.2 million shares from the diluted share calculation.

For the second quarter and six months ended October 25, 2025, we excluded options to purchase 0.2 million shares from the diluted share calculation.

second quarter and six months ended October 26, 2024 we did not exclude any outstanding options from the diluted share calculation .

Fair Value Measurements

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We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 26, 2025 and April 26, 2025.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at October 25, 2025 and April 26, 2025.

There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented.

At July 26, 2025

At October 25, 2025

Fair Value Measurements

10 unchanged sentences

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

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

At October 25, 2025 and April 26, 2025, we held marketable securities to fund future obligations of certain retirement plans.

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

Subsequent Events

On October 28, 2025, we completed the acquisition of the Atlanta, GA, Northeast Florida, and Knoxville, TN businesses that operate 15 independently owned La-Z-Boy Stores and four distribution centers.

We expect to pay $ 85.5 million during the third quarter of fiscal 2026, subject to further customary adjustments.

We will begin including the stores in our Retail segment results in the third quarter of fiscal 2026.

We anticipate recording our initial purchase accounting, including the fair value measurements for acquired inventory, the indefinite-lived reacquired rights asset, and the goodwill acquired as part of this acquisition, when we report our financial results of our third quarter of fiscal 2026.

This acquisition is not significant to our consolidated financial statements, and therefore, pro-forma financial information will not be presented.

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-Q

Item 1. Financial Statements