20 unchanged sentences
In addition, we import, distribute and retail accessories and casegoods (wood) furniture products under the Kincaid ® , American Drew ® , Hammary ® , and Joybird ® tradenames.
−Removed: As of October 25, 2025, our supply chain operations included the following:
+Added: As of January 24, 2026, our supply chain operations included the following:
• Five major manufacturing locations and 11 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
−Removed: • 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
+Added: • An upholstery manufacturing business in the United Kingdom.
+Added: As of the end of the third quarter of fiscal 2026, we are in the process of closing this business and we expect to cease production by the end of fiscal 2026.
+Added: • 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
4 unchanged sentences
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, directly to consumers through retail stores that we own and operate, and through our websites, www.la-z-boy.com and www.joybird.com.
−Removed: • The centerpiece of our retail distribution strategy is our network of 370 La-Z-Boy Stores, over 500 La-Z-Boy Comfort Studio ® locations, and over 800 La-Z-Boy branded space locations, each dedicated to marketing our La-Z-Boy branded products.
+Added: • The centerpiece of our retail distribution strategy is our network of 374 La-Z-Boy Stores, over 500 La-Z-Boy Comfort Studio ® locations, and nearly 900 La-Z-Boy branded space locations, each dedicated to marketing our La-Z-Boy branded products.
We consider this dedicated space to be "proprietary."
56 unchanged sentences
Results of Operations
−Removed: Fiscal 2026 Second Quarter Compared with Fiscal 2025 Second Quarter
+Added: Fiscal 2026 Third Quarter Compared with Fiscal 2025 Third Quarter
La-Z-Boy Incorporated
−Removed: Quarter Ended Six Months Ended
+Added: Quarter Ended Nine Months Ended
(Unaudited, amounts in thousands, except percentages) 1/24/2026 1/25/2025 % Change 1/24/2026 1/25/2025 % Change
2 unchanged sentences
Operating margin 5.5% 6.7% 5.7% 6.9%
−Removed: Consolidated sales increased $1.5 million, or 0.3%, and decreased $1.9 million, or 0.2% in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: Sales benefited from growth in our core North America La-Z-Boy branded wholesale business driven by strategic pricing and surcharge actions, increased sales from our retail store expansion, and incremental sales from our retail store acquisitions completed in the prior year.
−Removed: These increases were largely offset by the combination of lower delivered same-store sales in our Retail segment, along with lower delivered volume in our Joybird business.
−Removed: Additionally, lower delivered volume in our international wholesale businesses, due in part to a significant customer transition that began in the second quarter of fiscal 2025, negatively impacted sales in the first six months of fiscal 2026, and to a lesser extent, in the second quarter of fiscal 2026.
+Added: Consolidated sales increased $19.8 million, or 3.8%, and $18.0 million, or 1.2% in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, led by incremental sales from our retail store acquisitions that occurred in fiscal 2025 and 2026 along with sales from our retail store expansion.
+Added: Sales during the first nine months of fiscal 2026 further benefitted from growth in our core North America La-Z-Boy branded wholesale business driven by strategic pricing and surcharge actions.
+Added: These increases were partially offset by lower delivered same-store sales in our Retail segment, along with lower delivered volume in our Casegoods and Joybird businesses.
Operating Margin
−Removed: Operating margin, which is calculated as operating income as a percentage of sales, decreased 50 basis points and 130 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: • Gross margin, which is calculated as gross profit as a percentage of sales, decreased 10 basis points and 30 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: ◦ Increased supply chain costs, including higher distribution costs related to our distribution and home delivery transformation, and increased overhead in our manufacturing operations, drove a decrease in gross margin in the second quarter and first six months of fiscal 2026 compared with the same periods a year ago.
−Removed: ◦ Partially offsetting the item above, gross margin in the second quarter and first six months of fiscal 2026 benefited from lower input costs compared with the same periods a year ago, led by favorable inbound ocean freight and improved sourcing.
−Removed: • SG&A expenses as a percentage of sales increased 40 basis points and 100 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: ◦ SG&A expense as a percentage of sales increased due to fixed cost deleverage in our Retail segment from lower delivered same-store sales combined with higher selling expenses and fixed costs resulting from our retail store expansion in support of our long-term strategy of growing our Retail segment.
−Removed: ◦ Partially offsetting the item above, SG&A expense as a percentage of sales benefited from lower warranty expense due to a reduction in our warranty liability driven by a change in which we provide our external dealers an upfront service allowance for certain labor and delivery costs that they provide under our Wholesale warranty program for La-Z-Boy products that they sell and have previously sold.
+Added: Operating margin, which is calculated as operating income as a percentage of sales, decreased 120 basis points in both the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: • Gross margin, which is calculated as gross profit as a percentage of sales, decreased 120 basis points and 60 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ During the third quarter of fiscal 2026, we recorded $3.4 million of severance expense in connection with the planned closure of the United Kingdom manufacturing business and a $3.0 million impairment charge to adjust inventory held for sale to its fair value on the upholstery portion of our Casegoods business, both of which reduced gross margin in the third quarter and first nine months of fiscal 2026, compared with the same periods a year ago.
+Added: ◦ Higher distribution costs, primarily related to our distribution and home delivery transformation, drove an additional decrease in gross margin in the third quarter and first nine months of fiscal 2026, compared with the same periods a year ago.
+Added: ◦ Partially offsetting the items above, changes in our consolidated mix drove an increase in gross margin in the third quarter and first nine months of fiscal 2026, respectively, due to growth in our Retail segment, which has a higher gross margin than our Wholesale segment.
+Added: • SG&A expenses as a percentage of sales was flat and increased 60 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ In the third quarter and first nine months of fiscal 2026, SG&A expense as a percentage of sales:
+Added: ▪ Increased due to fixed cost deleverage in our Retail segment from lower delivered same-store sales combined with higher selling expenses and fixed costs resulting from our retail store expansion in support of our long-term strategy of growing our Retail segment.
+Added: ▪ Decreased due to a $3.9 million gain recognized in the third quarter of fiscal 2026, as we completed the sale of our Casegoods headquarters building and related fixed assets.
+Added: ◦ In the third quarter of fiscal 2026, changes in our consolidated mix also drove an increase in SG&A expense as a percentage of sales compared with the same period a year ago, due to growth in our Retail segment, which has a higher SG&A expense as a percentage of sales than our Wholesale segment.
+Added: ◦ In the first nine months of fiscal 2026, SG&A expense as a percentage of sales also benefited from lower warranty expense due to a reduction in our warranty liability driven by a change in which we provide our external dealers an upfront service allowance for certain labor and delivery costs that they provide under our Wholesale warranty program for La-Z-Boy products that they sell and have previously sold.
We discuss each segment’s results in the following section.
Retail Segment
−Removed: Quarter Ended Six Months Ended
+Added: Quarter Ended Nine Months Ended
(Unaudited, amounts in thousands, except percentages) 1/24/2026 1/25/2025 % Change 1/24/2026 1/25/2025 % Change
2 unchanged sentences
Operating margin 10.5% 10.7% 9.3% 11.2%
−Removed: The Retail segment’s sales increased $0.5 million, or 0.2%, and $5.3 million, or, 1% in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: The increase was primarily due to increased sales from our retail store expansion, net of closed stores, along with $6.0 million and $14.1 million of incremental sales in the second quarter and first six months of fiscal 2026, respectively, resulting from our retail store acquisitions that occurred in fiscal 2025.
−Removed: These increases were largely and partially offset by a decline in delivered same-store sales during the second quarter and first six months of fiscal 2026, respectively.
−Removed: Total written sales increased 4% in both the second quarter and first six months of fiscal 2026, compared with the same periods a year ago.
+Added: The Retail segment’s sales increased $24.3 million, or 11%, and $29.5 million, or, 5% in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: The increase was primarily due to $23.4 million and $37.7 million of incremental sales in the third quarter and first nine months of fiscal 2026, respectively, resulting from our retail store acquisitions that occurred in fiscal 2025 and 2026, along with increased sales from our retail store expansion, net of closed stores.
+Added: These increases were partially offset by a decline in delivered same-store sales during the third quarter and first nine months of fiscal 2026.
+Added: Total written sales increased 11% and 7% in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
Written same-store sales decreased 4% and 3% over the same periods, primarily due to lower consumer demand as a result of a challenging macroeconomic environment.
−Removed: Same-store sales include the sales of all currently active stores that have been open and company-owned for each comparable period.
+Added: Same-store sales include the sales of all currently active stores that have been open and company-owned for each comparable period and excludes the benefit of net new stores and acquired stores.
Operating Margin
−Removed: The Retail segment's operating margin decreased 190 basis points and 290 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: • Gross margin increased 100 basis points and 40 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to a favorable shift in product mix towards higher margin products.
−Removed: • SG&A expenses as a percentage of sales increased 290 basis points and 330 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to fixed cost deleverage from lower delivered same-store sales combined with increased selling expenses and fixed costs resulting from our retail store expansion of 10 net new stores over the last 12 months, supporting our long-term strategy of growing our Retail segment.
+Added: The Retail segment's operating margin decreased 20 basis points and 190 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: • Gross margin increased 20 basis points and 30 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to a favorable shift in product mix towards higher margin upholstery products.
+Added: • SG&A expenses as a percentage of sales increased 40 basis points and 220 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to fixed cost deleverage from lower delivered same-store sales combined with increased selling expenses and fixed costs resulting from our retail store expansion of 12 net new stores over the last 12 months, supporting our long-term strategy of growing our Retail segment.
Wholesale Segment
−Removed: Quarter Ended Six Months Ended
+Added: Quarter Ended Nine Months Ended
(Unaudited, amounts in thousands, except percentages) 1/24/2026 1/25/2025 % Change 1/24/2026 1/25/2025 % Change
4 unchanged sentences
Operating margin 5.2% 6.5% 6.7% 6.7%
−Removed: The Wholesale segment’s sales increased $5.5 million, or 2%, and $7.6 million, or 1% in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to growth in our core North America La-Z-Boy branded wholesale business led by strategic pricing and surcharge actions.
−Removed: The sales increase in the first six months of fiscal 2026 was partially offset by lower delivered volume in our international wholesale businesses, due in part to a significant customer transition that began in the second quarter fiscal 2025.
+Added: The Wholesale segment’s sales increased $3.6 million, or 1%, and $11.2 million, or 1% in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, driven by modest growth across the majority of our wholesale businesses, partially offset by lower delivered volume in our Casegoods business.
+Added: Additionally, sales in the first nine months of fiscal 2026 were negatively impacted by lower delivered volume in our international wholesale businesses, due in part to a significant customer transition that began in the second quarter fiscal 2025.
Operating Margin
−Removed: The Wholesale segment's operating margin increased 120 basis points and 70 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: • Gross margin decreased 10 basis points and 40 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago
−Removed: ◦ Increased distribution costs, primarily due to incremental expenses related to our distribution and home delivery transformation, drove a 70 basis point and 90 basis point decrease in gross margin in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: ◦ The first six months of fiscal 2026 also experienced higher manufacturing overhead costs, driving a 50 basis point decrease in gross margin compared with the same period a year ago.
−Removed: ◦ Partially offsetting the items above, lower input costs, led by favorable inbound ocean freight and improved sourcing, drove a 60 basis point and 90 basis point increase in gross margin in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: • SG&A expense as a percentage of sales decreased 130 basis points and 110 basis points in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago
−Removed: ◦ The reduction in our warranty liability as a result of the change described above drove a 160 basis point and 80 basis point decrease in SG&A expense as a percentage of sales in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: Lower warranty expense as a result of improved warranty trends drove an additional 30 basis point decrease in SG&A expense as a percentage of sales in the first six months of fiscal 2026 compared with the same period a year ago.
−Removed: ◦ Partially offsetting the item above, marketing expense in the second quarter of fiscal 2026 increased relative to the prior year, resulting in a 40 basis point increase in SG&A expense as a percentage of sales.
+Added: The Wholesale segment's operating margin decreased 130 basis points and was flat in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: • Gross margin decreased 280 basis points and 120 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ During the third quarter of fiscal 2026, we recorded $3.4 million of severance expense in connection with the planned closure of the United Kingdom manufacturing business resulting in a 90 basis point and 30 basis point reduction in gross margin in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ During the third quarter of fiscal 2026, we recorded a $3.0 million impairment charge to adjust inventory held for sale to its fair value on the upholstery portion of our Casegoods business, resulting in an 80 basis point and 30 basis point reduction in gross margin in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ Higher distribution costs, primarily related to our distribution and home delivery transformation drove an 80 basis point decrease in gross margin in both the third quarter and first nine months of fiscal 2026, compared with the same periods a year ago.
+Added: ◦ Gross margin in the third quarter of fiscal 2026 also decreased 50 basis points as the Mexican peso strengthened relative to the U.S.
+Added: dollar, driving higher production-related costs compared with the same period a year ago.
+Added: • SG&A expense as a percentage of sales decreased 150 basis points and 120 basis points in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago
+Added: ◦ During the third quarter of fiscal 2026, we completed the sale of our Casegoods headquarters building and related fixed assets, resulting in a $3.9 million gain and a comparative 110 basis point and 40 basis point improvement in SG&A as a percentage of sales in third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: ◦ The remaining decrease in SG&A expense as a percentage of sales in the third quarter of fiscal 2026 was primarily due to fixed cost leverage on higher sales.
+Added: ◦ SG&A expense as a percentage of sales also decreased 80 basis points in the first nine months of fiscal 2026, compared with the same period a year ago, due to a reduction in our warranty liability as a result of the change described above, along with lower warranty expense led by improved warranty trends.
Corporate and Other
−Removed: Quarter Ended Six Months Ended
+Added: Quarter Ended Nine Months Ended
(Unaudited, amounts in thousands, except percentages) 1/24/2026 1/25/2025 % Change 1/24/2026 1/25/2025 % Change
2 unchanged sentences
Operating loss (15,825) (12,854) (23.1)% (48,831) (38,786) (25.9) %
−Removed: Corporate and Other sales decreased $3.4 million and $10.9 million in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: The change in sales was primarily attributable to Joybird sales which decreased $3.8 million to $34.9 million and $10.7 million to $62.6 million in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to lower delivered volume partially offset by a favorable shift in product mix.
−Removed: Written sales for Joybird increased 1% and decreased 7.0% in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: Intercompany eliminations increased slightly in the second quarter and first six months of fiscal 2026 compared with the same periods a year ago due to higher sales from our Wholesale segment to our Retail segment.
+Added: Corporate and Other sales decreased $1.6 million and $12.5 million in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: The change in sales was primarily attributable to Joybird sales which decreased $1.1 million to $35.9 million and $11.8 million to $98.5 million in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to lower delivered volume partially offset by a favorable shift in product mix.
+Added: Written sales for Joybird decreased 13% and 9% in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, as this consumer segment continues to be particularly volatile in the current macroeconomic environment.
+Added: Intercompany eliminations increased in the third quarter and first nine months of fiscal 2026 compared with the same periods a year ago due to higher sales from our Wholesale segment to our Retail segment.
Operating Loss
−Removed: Our Corporate and Other operating loss increased $3.0 million and $7.1 million in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to Joybird's operating loss resulting from lower delivered sales volume.
+Added: Our Corporate and Other operating loss increased $3.0 million and $10.0 million in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago, primarily due to Joybird's operating loss resulting from lower delivered sales volume.
Non-Operating Income (Expense)
Interest Income
−Removed: Interest income was $0.2 million and $1.5 million lower in the second quarter and first six months of fiscal 2026, respectively, compared with the same periods a year ago.
−Removed: The decrease in the first six months of fiscal 2026 was primarily driven by lower interest rates.
+Added: Interest income was $0.8 million and $2.3 million lower in the third quarter and first nine months of fiscal 2026, respectively, compared with the same periods a year ago.
+Added: The decrease in the third quarter and first nine months of fiscal 2026 was primarily driven by lower interest rates along with lower interest-bearing cash balances.
Other Income, (Expense), Net
−Removed: Other income (expense), net was $0.1 million and $0.6 million of expense in the second quarter and first six months of fiscal 2026, respectively, compared with $1.9 million and $2.5 million of expense in the same periods a year ago.
−Removed: The expense in fiscal 2025 was primarily due to exchange rate losses related to our manufacturing and wholesale businesses in Thailand.
−Removed: Our effective tax rate was 26.7% and 26.1% for the second quarter and first six months of fiscal 2026, respectively, compared with 26.3% and 25.9% for the second quarter and first six months of fiscal 2025, respectively.
−Removed: Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes.
+Added: Other income, expense, net was $0.6 million and $1.2 million of expense in the third quarter and first nine months of fiscal 2026, respectively, compared with $0.1 million of income and $2.4 million of expense in the same periods a year ago.
+Added: The expense in the first nine months of fiscal 2026 and fiscal 2025 were primarily due to changes in exchange rates related to our operations in Mexico and Thailand.
+Added: Our effective tax rate was 31.3% and 27.8% for the third quarter and first nine months of fiscal 2026, respectively, compared with 25.1% and 25.6% for the third quarter and first nine months of fiscal 2025, respectively.
+Added: The year-over-year increases were primarily due to operating losses and charges related to our supply chain optimization actions in our United Kingdom business.
+Added: Our effective tax rate varies from the 21% federal statutory rate primarily due to state and foreign taxes.
Liquidity and Capital Resources
1 unchanged sentence
We believe these sources remain adequate to meet our short-term and long-term liquidity requirements, finance our long-term growth plans, and fulfill other cash requirements for day-to-day operations and capital expenditures, including fiscal 2026 contractual obligations.
−Removed: We had cash and cash equivalents of $338.5 million at October 25, 2025, compared with $328.4 million at April 26, 2025.
−Removed: In addition, we had investments to enhance our returns on cash of $2.6 million at October 25, 2025 and April 26, 2025.
+Added: We had cash and cash equivalents of $306.1 million at January 24, 2026, compared with $328.4 million at April 26, 2025.
+Added: In addition, we had investments to enhance our returns on cash of $2.8 million at January 24, 2026, compared with $2.6 million at April 26, 2025.
The following table illustrates the main components of our cash flows:
−Removed: Six Months Ended
+Added: Nine Months Ended
(Unaudited, amounts in thousands) 1/24/2026 1/25/2025
6 unchanged sentences
Operating Activities
−Removed: During the first six months of fiscal 2026, net cash provided by operating activities was $86.3 million, an increase of $18.1 million compared with the same period a year ago.
−Removed: The year over year increase was primarily due to lower inventory balances and higher customer deposits, partially offset by lower net income, adjusted for non-cash items, and a smaller reduction in receivables.
−Removed: Our cash provided by operating activities in the first six months of fiscal 2026 was primarily attributable to net income, adjusted for non-cash items, favorable changes to working capital, and higher customer deposits, partially offset by the payout of our fiscal 2025 incentive compensation award.
+Added: During the first nine months of fiscal 2026, net cash provided by operating activities was $175.7 million, primarily attributable to net income, adjusted for non-cash items, favorable changes to working capital, and higher customer deposits.
+Added: Net cash provided by operating activities in the first nine months of fiscal 2026 was $50.4 million higher than the same period a year ago primarily due to favorable changes in inventory and payables combined with higher customer deposits, all partially offset by lower net income, adjusted for non-cash items.
Investing Activities
−Removed: During the first six months of fiscal 2026, net cash used for investing activities was $38.8 million, a decrease of $6.7 million compared with the same period a year ago, due to lower cash paid for acquisitions partially offset by higher capital expenditures, along with lower proceeds from the sale of investments, net of investment purchases.
−Removed: Cash used for investing activities in the first six months of fiscal 2026 was mainly attributable to capital expenditures of $38.9 million, which were primarily related to La-Z-Boy Stores (new stores and remodels), manufacturing-related investments, and
−Removed: spending related to our distribution and home delivery transformation.
+Added: During the first nine months of fiscal 2026, net cash used for investing activities was $137.7 million, an increase of $66.5 million compared with the same period a year ago, due to increased cash paid for acquisitions and higher capital expenditures, partially offset by higher proceeds from the sale of assets.
+Added: Cash used for investing activities in fiscal 2026 included the following:
+Added: • Cash used for acquisitions was $86.4 million, primarily related to the acquisition of the Atlanta, Georgia, central/northeast Florida, and Knoxville, Tennessee retail business.
+Added: • Cash used for capital expenditures was $56.7 million, which were primarily related to La-Z-Boy Stores (new stores and remodels), manufacturing-related investments, and spending related to our distribution and home delivery transformation.
We anticipate that spending on these items will continue throughout the remainder of fiscal 2026, with full year fiscal 2026 capital expenditures expected to be in the range of $80 to $90 million.
We have no material contractual commitments outstanding for future capital expenditures.
+Added: • Proceeds from the sale of assets were $4.8 million, primarily related to the sale of the Casegoods headquarters building and related fixed assets.
Financing Activities
−Removed: During the first six months of fiscal 2026, net cash used for financing activities was $37.6 million, a decrease of $24.1 million compared with the same period a year ago, primarily due to lower share repurchases, partially offset by reduced proceeds from exercised stock options.
−Removed: Cash used for financing activities in the first six months of fiscal 2026 included the following:
+Added: During the first nine months of fiscal 2026, net cash used for financing activities was $61.0 million, a decrease of $20.2 million compared with the same period a year ago, primarily due to lower share repurchases, partially offset by reduced proceeds from exercised stock options.
+Added: Cash used for financing activities in the first nine months of fiscal 2026 included the following:
• Cash paid to our shareholders in quarterly dividends was $28.1 million.
2 unchanged sentences
• Cash paid to repurchase 0.7 million shares of company stock was $27.1 million.
−Removed: Our board of directors has authorized the repurchase of Company stock and as of October 25, 2025, 3.4 million shares remained available for repurchase pursuant to this authorization.
+Added: Our board of directors has authorized the repurchase of Company stock and as of January 24, 2026, 3.0 million shares remained available for repurchase pursuant to this authorization.
• Cash paid for tax withholding on stock issued as part of our employee benefit plans, net of proceeds from exercised stock options, was $4.4 million.
6 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.
−Removed: 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.
+Added: As of January 24, 2026, we have no borrowings outstanding under the Credit Facility and we were in compliance with our financial covenants under the Credit Facility.
We believe our cash and cash equivalents, short-term investments, and cash from operations, in addition to our available Credit Facility, will provide adequate liquidity for our business operations over the next 12 months.
Exchange Rate Changes
−Removed: Due to changes in exchange rates, our cash and cash equivalents increased by $0.1 million for the six months ended October 25, 2025.
+Added: Due to changes in exchange rates, our cash and cash equivalents increased by $0.7 million for the nine months ended January 24, 2026.
These changes impacted our cash balances held in Canada, Thailand, and the United Kingdom.
−Removed: During the second quarter of fiscal 2026, there were no material changes to the information about our contractual obligations and commitments disclosed in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.
+Added: During the third quarter of fiscal 2026, there were no material changes to the information about our contractual obligations and commitments disclosed in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.
We do not expect our continuing compliance with existing federal, state and local statutes dealing with protection of the environment to have a material effect on our capital expenditures, earnings, competitive position or liquidity.
1 unchanged sentence
We disclosed our critical accounting policies in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.
−Removed: There were no material changes to our critical accounting policies or estimates during the six months ended October 25, 2025.
+Added: There were no material changes to our critical accounting policies or estimates during the nine months ended January 24, 2026.
Recent Accounting Pronouncements
1 unchanged sentence
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: During the first six months of fiscal 2026, there were no material changes from the information contained in Item 7A of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.
+Added: During the first nine months of fiscal 2026, there were no material changes from the information contained in Item 7A of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025.
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.