LA-Z-BOY INC 10-Q

ITEM 1. FINANCIAL STATEMENTS LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF INCOME Quarter Ended Nine Months Ended (Unaudited, amounts in thousands, except per share data) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Sales $ 541,588 $ 521,777 $ 1,556,297 $ 1,538,336 Cost of sales 308,077 290,412 882,451 862,980 Gross profit 233,511 231,365 673,846 675,356 Selling, general and administrative expense 203,700 196,197 585,869 569,046 Operating income 29,811 35,168 87,977 106,310 Interest expense ( 159 ) ( 102 ) ( 389 ) ( 411 ) Interest income 2,698 3,465 9,355 11,619 Other income (expense), net ( 599 ) 97 ( 1,238 ) ( 2,400 ) Income before income taxes 31,751 38,628 95,705 115,118 Income tax expense 9,951 9,683 26,618 29,516 Net income 21,800 28,945 69,087 85,602 Net (income) attributable to noncontrolling interests ( 150 ) ( 516 ) ( 375 ) ( 977 ) Net income attributable to La-Z-Boy Incorporated $ 21,650 $ 28,429 $ 68,712 $ 84,625 Basic weighted average common shares 41,084 41,437 41,113 41,733 Basic net income attributable to La-Z-Boy Incorporated per share $ 0.53 $ 0.69 $ 1.67 $ 2.03 Diluted weighted average common shares 41,485 42,103 41,524 42,380 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.52 $ 0.68 $ 1.65 $ 2.00 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 3 Table of Contents LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Net income $ 21,800 $ 28,945 $ 69,087 $ 85,602 Other comprehensive income Currency translation adjustment 1,887 ( 1,776 ) 2,258 1,369 Net unrealized gain (loss) on marketable securities, net of tax ( 50 ) ( 61 ) 87 35 Net pension amortization, net of tax 20 16 57 47 Total other comprehensive income (loss) 1,857 ( 1,821 ) 2,402 1,451 Total comprehensive income before noncontrolling interests 23,657 27,124 71,489 87,053 Comprehensive (income) attributable to noncontrolling interests ( 765 ) ( 550 ) ( 1,279 ) ( 2,025 ) Comprehensive income attributable to La-Z-Boy Incorporated $ 22,892 $ 26,574 $ 70,210 $ 85,028 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 4 Table of Contents LA-Z-BOY INCORPORATED CONSOLIDATED BALANCE SHEET (Unaudited, amounts in thousands, except par value) 1/24/2026 4/26/2025 Current assets Cash and equivalents $ 306,117 $ 328,449 Receivables, net of allowance of $ 4,875 at 1/24/2026 and $ 5,042 at 4/26/2025 123,800 139,533 Inventories, net 235,051 255,285 Assets held for sale 35,904 — Other current assets 107,823 82,421 Total current assets 808,695 805,688 Property, plant and equipment, net 340,421 339,212 Goodwill 263,259 205,590 Other intangible assets, net 77,776 51,161 Deferred income taxes – long-term 7,535 7,349 Right of use lease assets 525,107 452,848 Other long-term assets, net 64,170 60,314 Total assets $ 2,086,963 $ 1,922,162 Current liabilities Accounts payable $ 117,943 $ 95,984 Lease liabilities, short-term 88,546 80,592 Accrued expenses and other current liabilities 281,014 244,215 Total current liabilities 487,503 420,791 Lease liabilities, long-term 479,920 410,265 Other long-term liabilities 64,386 59,130 Shareholders' equity Preferred shares – 5,000 authorized; none issued — — Common shares, $ 1.00 par value – 150,000 authorized; 40,924 outstanding at 1/24/2026 and 41,164 outstanding at 4/26/2025 40,924 41,164 Capital in excess of par value 396,810 385,601 Retained earnings 606,864 597,432 Accumulated other comprehensive loss ( 2,076 ) ( 3,574 ) Total La-Z-Boy Incorporated shareholders' equity 1,042,522 1,020,623 Noncontrolling interests 12,632 11,353 Total equity 1,055,154 1,031,976 Total liabilities and equity $ 2,086,963 $ 1,922,162 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 5 Table of Contents LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 Cash flows from operating activities Net income $ 69,087 $ 85,602 Adjustments to reconcile net income to cash provided by operating activities (Gain)/loss on disposal and impairment of assets 384 73 (Gain)/loss on sale of investments ( 282 ) ( 199 ) Provision for doubtful accounts 111 518 Depreciation and amortization 35,624 35,020 Amortization of right-of-use lease assets 62,332 61,521 Equity-based compensation expense 11,745 13,428 Change in deferred taxes 3,143 2,134 Change in receivables 11,470 10,465 Change in inventories 7,939 ( 21,726 ) Change in other assets ( 5,280 ) ( 10,217 ) Change in payables 25,702 11,897 Change in lease liabilities ( 61,826 ) ( 62,607 ) Change in other liabilities 15,541 ( 640 ) Net cash provided by operating activities 175,690 125,269 Cash flows from investing activities Proceeds from disposals of assets 4,822 188 Capital expenditures ( 56,737 ) ( 51,538 ) Purchases of investments ( 822 ) ( 6,783 ) Proceeds from sales of investments 1,421 11,715 Acquisitions ( 86,423 ) ( 24,772 ) Net cash used for investing activities ( 137,739 ) ( 71,190 ) Cash flows from financing activities Payments on finance lease liabilities ( 702 ) ( 442 ) Payments for debt issuance costs ( 784 ) — Stock issued for stock and employee benefit plans, net of shares withheld for taxes ( 4,370 ) 10,906 Repurchases of common stock ( 27,051 ) ( 64,387 ) Dividends paid to shareholders ( 28,082 ) ( 25,871 ) Dividends paid to minority interest joint venture partners (1) — ( 1,414 ) Net cash used for financing activities ( 60,989 ) ( 81,208 ) Effect of exchange rate changes on cash and equivalents 706 620 Change in cash and cash equivalents ( 22,332 ) ( 26,509 ) Cash and cash equivalents at beginning of period 328,449 341,098 Cash and cash equivalents at end of period $ 306,117 $ 314,589 Supplemental disclosure of non-cash investing activities Capital expenditures included in payables $ 3,297 $ 4,010 (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. 6 Table of Contents LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited, amounts in thousands, except per share data) Common Shares Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-Controlling Interests Total At April 26, 2025 $ 41,164 $ 385,601 $ 597,432 $ ( 3,574 ) $ 11,353 $ 1,031,976 Net income — — 18,204 — 93 18,297 Other comprehensive income — — — 779 409 1,188 Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 343 173 ( 5,706 ) — — ( 5,190 ) Repurchases of 300 shares of common stock ( 300 ) ( 648 ) ( 11,560 ) — — ( 12,508 ) Stock option and restricted stock expense — 3,420 — — — 3,420 Dividends declared and paid ($ 0.22 /share) — — ( 9,012 ) — — ( 9,012 ) Dividends declared not paid ($ 0.22 /share) — — ( 149 ) — — ( 149 ) 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 Net income — — 21,650 — 150 21,800 Other comprehensive income — — — 1,242 615 1,857 Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 25 544 ( 68 ) — — 501 Repurchases of 350 shares of common stock ( 350 ) ( 551 ) ( 12,958 ) — — ( 13,859 ) Stock option and restricted stock expense — 3,502 — — — 3,502 Dividends declared and paid ($ 0.242 /share) — — ( 9,953 ) — — ( 9,953 ) Dividends declared not paid ($ 0.242 /share) — — ( 151 ) — — ( 151 ) At January 24, 2026 $ 40,924 $ 396,810 $ 606,864 $ ( 2,076 ) $ 12,632 $ 1,055,154 7 Table of Contents (Unaudited, amounts in thousands, except per share data) Common Shares Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-Controlling Interests Total At April 27, 2024 $ 42,440 $ 368,485 $ 598,009 $ ( 5,870 ) $ 10,296 $ 1,013,360 Net income — — 26,159 — 645 26,804 Other comprehensive income — — — 1,335 326 1,661 Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 508 10,086 ( 2,720 ) — — 7,874 Repurchases of 933 shares of common stock ( 933 ) ( 10,325 ) ( 22,658 ) — — ( 33,916 ) Stock option and restricted stock expense — 3,175 — — — 3,175 Dividends declared and paid ($ 0.20 /share) — — ( 8,371 ) — — ( 8,371 ) Dividends declared not paid ($ 0.20 /share) — — ( 111 ) — — ( 111 ) 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 Net income — — 28,429 — 516 28,945 Other comprehensive income — — — ( 1,855 ) 34 ( 1,821 ) Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 35 1,055 ( 71 ) — — 1,019 Repurchases of 271 shares of common stock ( 271 ) ( 935 ) ( 10,144 ) — — ( 11,350 ) Stock option and restricted stock expense — 4,381 — — — 4,381 Dividends declared and paid ($ 0.22 /share) — — ( 9,140 ) — — ( 9,140 ) Dividends declared not paid ($ 0.22 /share) — — ( 137 ) — — ( 137 ) At January 25, 2025 $ 41,411 $ 381,759 $ 603,569 $ ( 5,467 ) $ 10,907 $ 1,032,179 (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. 8 Table of Contents LA-Z-BOY INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1: Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries (collectively, the "Company"). We derived the April 26, 2025 balance sheet from our audited financial statements. We prepared the interim financial information in conformity with generally accepted accounting principles ("U.S. GAAP"), which we applied on a basis consistent with those reflected in our fiscal 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), but the information does not include all of the disclosures required by U.S. GAAP. In management’s opinion, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments (except as otherwise disclosed), that are necessary for a fair statement of results for the respective interim periods. The interim results reflected in the accompanying financial statements are not necessarily indicative of the results of operations that will occur for the full fiscal year ending April 25, 2026. Accounting Pronouncements Adopted in Fiscal 2026 The following table summarizes Accounting Standards Updates ("ASUs"), which were adopted in fiscal 2026, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. ASU Description Adoption Date ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Fiscal 2026 Accounting Pronouncements not yet Adopted The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures. 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. Fiscal 2029 ASU 2025-05 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets Fiscal 2027 ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity Fiscal 2028 ASU 2024-04 Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments Fiscal 2027 ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses Fiscal 2028 Note 2: Acquisitions None of the below acquisitions were significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented. All of our provisional purchase accounting estimates for the acquisition completed in fiscal 2026 are based on the information and data available to us as of the time of the issuance of these financial statements, and in accordance with Accounting Standard Codification Topic 805-10-25-15, are subject to change within the first 12 months following the acquisition as we gain additional data. Each of the following Retail acquisitions completed in fiscal 2026 and 2025 reflects a core component of our strategic priorities, which is to grow our company-owned retail business and leverage our vertically 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 2026 and 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 9 Table of Contents 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. Atlanta, Georgia, Central/Northeast Florida, and Knoxville, Tennessee Acquisition On October 28, 2025, we completed our acquisition of the Atlanta, Georgia, central/northeast Florida, and Knoxville, Tennessee business that operated 15 independently owned La-Z-Boy Stores and four distribution centers for $ 90.2 million, inclusive of and subject to further customary adjustments. We paid total cash of $ 85.8 million during the third quarter of fiscal 2026 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 $ 28.3 million related to the reacquired rights described above. We also recognized $ 57.6 million of goodwill in our Retail segment primarily related to future growth potential of the business along with synergies we expect from the integration of the acquired stores. We based the purchase price allocation on fair values at the date of acquisition as follows: (Unaudited, amounts in thousands) 10/28/2025 Fair value of consideration: Cash $ 85,796 Forgiveness of accounts receivable 4,358 Total fair value of consideration 90,154 Amounts recognized for identifiable assets acquired and liabilities assumed: Inventory 9,239 Other current assets 4,682 Property, plant and equipment 814 Indefinite-lived reacquired rights 28,339 Right of use lease assets 58,838 Lease liabilities, short-term ( 5,016 ) Customer deposits ( 5,869 ) Other current liabilities ( 4,682 ) Lease liabilities, long-term ( 53,822 ) Total identifiable net assets acquired 32,523 Goodwill $ 57,631 Prior Year Acquisitions Toledo , Ohio Acquisition On January 16, 2025, we completed our acquisition of the Toledo, Ohio business that operated two independently owned La-Z-Boy Stores for $ 5.9 million, inclusive of customary adjustments. The acquisition also included the purchase of the building and land for one of the stores. We paid total cash of $ 5.7 million during the third and fourth 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 $ 1.7 million related to the reacquired rights described above. We also recognized $ 0.6 million of goodwill in our Retail segment primarily related to future growth potential of the business along with synergies we expect from the integration of the acquired stores. Melbourne and Cocoa, Florida Acquisition On September 10, 2024, we completed our acquisition of the Melbourne and Cocoa, Florida businesses that operated 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 10 Table of Contents goodwill in our Retail segment primarily related to future growth potential of the business along with synergies we expect from the integration of the acquired stores. Davenport, Iowa Acquisition On July 22, 2024, we completed our acquisition of the Davenport, Iowa business that operated 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. As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 1.7 million related to the reacquired rights described above. We also recognized $ 5.1 million of goodwill in our Retail segment primarily related to future growth potential of the business along with synergies we expect from the integration of the acquired store. Note 3: Inventories A summary of inventories is as follows: (Unaudited, amounts in thousands) 1/24/2026 4/26/2025 Raw materials $ 132,449 $ 128,823 Work in process 18,930 19,280 Finished goods 130,286 153,796 FIFO inventories 281,665 301,899 Excess of FIFO over LIFO ( 46,614 ) ( 46,614 ) Total inventories $ 235,051 $ 255,285 Note 4: Assets Held for Sale 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. GAAP. As of January 24, 2026, we met the criteria to classify the following assets as held for sale: (Unaudited, amounts in thousands) 1/24/2026 Casegoods Wholesale Business Inventory $ 19,464 Property, plant and equipment, net 4,226 Intangible assets 1,155 Total 24,845 Retail Stores Property, plant and equipment, net 11,059 Total assets held for sale $ 35,904 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. Casegoods Wholesale Business During the second quarter of fiscal 2026, the Company committed to a plan to dispose a portion of our Casegoods wholesale business (the "Casegoods disposal group"). The Casegoods business currently operates within the Wholesale segment and the Casegoods disposal group does not meet the requirements to be classified as discontinued operations as the disposition of a portion of this business does not represent a strategic shift that will have a material effect on the Company’s operations and financial results. During the third quarter of fiscal 2026 we completed the sale of the Casegoods headquarters building and related fixed assets, resulting in a $ 3.9 million gain recorded in selling, general and administrative expense. Additionally, we recorded an impairment charge of $ 3.0 million in cost of sales to reduce inventory classified as held for sale to its fair value on the upholstery portion of our Casegoods business which was sold during the fourth quarter of fiscal 2026. Both the gain on sale and 11 Table of Contents impairment charge were recorded in the Wholesale segment. We anticipate the remaining assets in the Casegoods disposal group will be substantially disposed of by the end of fiscal 2026. Retail Stores During the third quarter of fiscal 2026, the Company committed to a plan to sell and leaseback buildings and related fixed assets of four retail stores by the end of fiscal 2026 (the "Retail disposal group"). Upon classifying these assets as held for sale, we concluded that the total carrying value of the Retail disposal group did not exceed its fair value and no impairment was recorded. Note 5: Goodwill and Other Intangible Assets We have goodwill on our consolidated balance sheet as follows: Reportable Segment/Unit Reporting Unit Related Acquisition Retail Segment Retail Independent La-Z-Boy Stores Corporate and Other Joybird Joybird The following table summarizes changes in the carrying amount of our goodwill by reportable segment: (Unaudited, amounts in thousands) Wholesale Segment Retail Segment Corporate and Other Total Goodwill Balance at April 26, 2025 (1) $ — $ 150,144 $ 55,446 $ 205,590 Acquisitions — 57,631 — 57,631 Translation adjustment — 38 — 38 Balance at January 24, 2026 (1) $ — $ 207,813 $ 55,446 $ 263,259 (1) Includes $ 26.9 million and $ 20.6 million of accumulated impairment losses in Corporate and Other and the Wholesale segment, respectively. We have intangible assets on our consolidated balance sheet as follows: Reportable Segment Intangible Asset Useful Life Wholesale Segment American Drew ® trade name (1) 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: (Unaudited, amounts in thousands) Indefinite- Lived Trade Names Finite-Lived Trade Name Indefinite- Lived Reacquired Rights Total Intangible Assets Balance at April 26, 2025 $ 1,155 $ 998 $ 49,008 $ 51,161 Acquisitions — — 28,339 28,339 Amortization — ( 599 ) — ( 599 ) Translation adjustment — — 30 30 Reclass to assets held for sale ( 1,155 ) — — ( 1,155 ) Balance at January 24, 2026 $ — $ 399 $ 77,377 $ 77,776 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. When we perform the quantitative test for goodwill, we establish the fair value for the reporting unit based on the income approach, in which we utilize a discounted cash flow model, the market approach, in which we utilize market multiples of comparable companies, or a combination of both approaches. The income approach requires the use of significant estimates and assumptions including 12 Table of Contents forecasted sales growth, operating income projections, and discount rates and changes in these assumptions may materially impact our fair value assessment. We test amortizable intangible assets for impairment if events or changes in circumstances indicate that the assets might be impaired. Note 6: Investments We have current and long-term investments intended to enhance returns on our cash as well as to fund future obligations of certain retirement plans. Our short-term investments are included in other current assets and our long-term investments are included in other long-term assets on our consolidated balance sheet. The following summarizes our investments: (Unaudited, amounts in thousands) 1/24/2026 4/26/2025 Short-term investments: Marketable securities $ 11 $ 10 Held-to-maturity investments 2,768 2,607 Total short-term investments 2,779 2,617 Long-term investments: Marketable securities 12,615 12,284 Total investments $ 15,394 $ 14,901 Investments to enhance returns on cash $ 2,768 $ 2,607 Investments to fund compensation/retirement plans 12,626 12,294 Total investments $ 15,394 $ 14,901 The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type: 1/24/2026 4/26/2025 (Unaudited, amounts in thousands) Gross Unrealized Gains Gross Unrealized Losses Fair Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Equity securities $ 1,194 $ — $ 3,723 $ 618 $ — $ 3,489 Fixed income 192 ( 12 ) 6,341 114 ( 50 ) 6,335 Other 264 ( 37 ) 5,330 322 ( 15 ) 5,077 Total securities $ 1,650 $ ( 49 ) $ 15,394 $ 1,054 $ ( 65 ) $ 14,901 The following table summarizes sales of marketable securities: Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Proceeds from sales $ 704 $ 1,490 $ 1,421 $ 11,715 Gross realized gains 70 85 284 518 Gross realized losses ( 2 ) — ( 2 ) ( 35 ) As of January 24, 2026, we held $ 6.3 million of fixed income marketable securities, classified as available-for-sale securities, all of which do not have a single contractual maturity date. Note 7: Debt 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 13 Table of Contents Agreement"). The Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of $ 200 million, which includes a $ 50 million letter of credit sub-limit (the "Credit Facility"). On July 1, 2025, we entered into an amendment to the Credit Agreement (the "Credit Agreement Amendment"). The Credit Agreement Amendment, among other things, (i) extended the maturity date of the Credit Facility from October 15, 2026 to July 1, 2030, (ii) increased the accordion basket for additional revolving commitments and/or incremental term loans from $ 100 million to $ 125 million, (iii) removed the secured overnight financing rate ("SOFR") credit spread adjustment, and (iv) decreased the consolidated fixed charge coverage ratio required to be satisfied under the Company’s financial covenant. Borrowings under the Credit Facility may be used by the Company for general corporate purposes. The Credit Facility will mature on July 1, 2030, and provides us the ability to extend the maturity date for two additional one-year periods, subject to the satisfaction of customary conditions. 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 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. Note 8: Product Warranties We accrue an estimated liability for product warranties when we recognize revenue on the sale of warrantied products. We estimate future warranty claims on product sales based on sales volume and our historical claims experience and periodically adjust the provision to reflect changes in actual experience. We incorporate repair costs into our liability estimates, including materials, labor and overhead amounts necessary to perform repairs, and any costs associated with delivering repaired product to our customers. Over 90 % of our warranty liability relates to our Wholesale reportable segment, as we generally warrant our products against defects from one to three years on fabric and leather, from one to five years on cushions and padding, and provide a limited lifetime warranty on certain mechanisms and frames, unless otherwise noted in the warranty. Additionally, our Wholesale segment warranties cover labor costs relating to our parts for one year. 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. We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known. A reconciliation of the changes in our product warranty liability is as follows: Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 1/24/2026 (1) 1/25/2025 Balance as of the beginning of the period $ 23,545 $ 29,552 $ 29,940 $ 28,909 Accruals during the period 6,122 7,784 19,617 25,100 Settlements during the period ( 5,853 ) ( 7,871 ) ( 20,137 ) ( 24,544 ) Change in warranty policy (2) — — ( 5,606 ) — Balance as of the end of the period $ 23,814 $ 29,465 $ 23,814 $ 29,465 (1) $ 17.2 million and $ 22.4 million is recorded in accrued expenses and other current liabilities as of January 24, 2026, 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. 14 Table of Contents Note 9: Stock-Based Compensation The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income: Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Equity-based awards expense $ 3,502 $ 4,381 $ 11,745 $ 13,428 Liability-based awards expense (1) 70 80 ( 18 ) 184 Total stock-based compensation expense $ 3,572 $ 4,461 $ 11,727 $ 13,612 (1) Includes stock appreciation rights, deferred stock units issued to Directors, restricted stock units, and performance-based units. Compensation expense for these awards is based on the market price of our common stock on the grant date and is remeasured each reporting period based on the market value of our common shares on the last day of the reported period. Restricted Stock . During the first nine months of fiscal 2026, we granted 264,509 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. 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. We accelerate the expense for restricted stock granted to retirement-eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. 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 nine 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 first nine months of fiscal 2026, we granted 31,672 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 first nine months of fiscal 2026 was $ 37.14 per share. Performance Shares. During the first quarter of fiscal 2026, we granted 182,671 performance-based shares, and we also have performance-based share awards outstanding from previous grants. Payouts of these grants depend on our financial performance ( 50 %) and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other public companies ( 50 %). The performance share opportunity ranges from 50 % of the employee’s target award if minimum performance requirements are met to a maximum of 200 % of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years. We account for performance-based shares as equity-based awards because when they vest, they will be settled in common shares. In the event of an employee's termination during the vesting period, the potential right to earn shares under this program is generally forfeited and we have elected to recognize forfeitures as an adjustment to compensation expense in the same period in which the forfeitures occur. For shares that vest based on our results relative to the performance goals, we expense as compensation cost the fair value of the shares as of the day we granted the awards recognized over the performance period, taking into account the probability that we will satisfy the performance goals. The fair value of each share of the awards we granted in fiscal 2026 that vest based on attaining performance goals was $ 35.62 , the market value of our common shares on the date we granted the awards less the dividends we expect to pay before the shares vest. 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. 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. Based on the Monte Carlo valuation model, the fair value as of the grant date of the fiscal 2026 grant of shares that vest based on market conditions was $ 52.91 . 15 Table of Contents Stock Options. We did not grant stock options to employees during the first nine 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. We recognize compensation expense for stock options 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. The vesting period for our stock options ranges from one to four years , with accelerated vesting upon retirement. The vesting date for retirement-eligible employees is the later of the date they meet the criteria for retirement or ten months after the grant date. We accelerate the expense for options granted to retirement eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur. Granted options outstanding under the former long-term equity award plan remain in effect and have a term of 10 years. We estimated the fair value of the employee stock options granted in prior years at their respective grant date using the Black-Scholes option-pricing model, which requires management to make certain assumptions. Note 10: Accumulated Other Comprehensive Loss Activity in accumulated other comprehensive income (loss) for the quarters ended January 24, 2026, and January 25, 2025, 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 October 25, 2025 $ ( 1,425 ) $ 474 $ ( 2,367 ) $ ( 3,318 ) Changes before reclassifications 1,272 ( 60 ) — 1,212 Amounts reclassified to net income — ( 6 ) 26 20 Tax effect — 16 ( 6 ) 10 Other comprehensive income (loss) attributable to La-Z-Boy Incorporated 1,272 ( 50 ) 20 1,242 Balance at January 24, 2026 $ ( 153 ) $ 424 $ ( 2,347 ) $ ( 2,076 ) Balance at October 26, 2024 $ ( 1,673 ) $ 342 $ ( 2,281 ) $ ( 3,612 ) Changes before reclassifications ( 1,810 ) ( 76 ) — ( 1,886 ) Amounts reclassified to net income — ( 4 ) 21 17 Tax effect — 19 ( 5 ) 14 Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 1,810 ) ( 61 ) 16 ( 1,855 ) Balance at January 25, 2025 $ ( 3,483 ) $ 281 $ ( 2,265 ) $ ( 5,467 ) 16 Table of Contents Activity in accumulated other comprehensive income (loss) for the nine months ended January 24, 2026, and January 25, 2025, 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 April 26, 2025 $ ( 1,507 ) $ 337 $ ( 2,404 ) $ ( 3,574 ) Changes before reclassifications 1,354 128 — 1,482 Amounts reclassified to net income — ( 12 ) 76 64 Tax effect — ( 29 ) ( 19 ) ( 48 ) Other comprehensive income attributable to La-Z-Boy Incorporated 1,354 87 57 1,498 Balance at January 24, 2026 $ ( 153 ) $ 424 $ ( 2,347 ) $ ( 2,076 ) Balance at April 27, 2024 $ ( 3,804 ) $ 246 $ ( 2,312 ) $ ( 5,870 ) Changes before reclassifications 321 53 — 374 Amounts reclassified to net income — ( 6 ) 62 56 Tax effect — ( 12 ) ( 15 ) ( 27 ) Other comprehensive income attributable to La-Z-Boy Incorporated 321 35 47 403 Balance at January 25, 2025 $ ( 3,483 ) $ 281 $ ( 2,265 ) $ ( 5,467 ) 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 Nine Months Ended (Unaudited, amounts in thousands) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Balance as of the beginning of the period $ 11,867 $ 10,357 $ 11,353 $ 10,296 Net income 150 516 375 977 Other comprehensive income 615 34 904 1,048 Dividends distributed to joint venture minority partners — — — ( 1,414 ) Balance as of the end of the period $ 12,632 $ 10,907 $ 12,632 $ 10,907 Note 11: Revenue Recognition Our revenue is primarily derived from product sales. We report product sales net of discounts and recognize them when control (rights and obligations associated with the product) passes to the customer. For sales to furniture retailers or distributors, control typically transfers when we ship the product. In cases where we sell directly to the end consumer, control of the product is generally transferred upon delivery. For shipping and handling activities, we have elected to apply the accounting policy election permitted in ASC 606-10-25-18B, which allows an entity to account for shipping and handling activities as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. We expense shipping and handling costs at the time we recognize revenue in accordance with this election. For sales tax, we have elected to apply the accounting policy election permitted in ASC 606-10-32-2A, which allows an entity to exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows us to present revenue net of these certain types of taxes. We have elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of 17 Table of Contents one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. The following table presents our revenue disaggregated by product category and by segment or unit: Quarter Ended January 24, 2026 Quarter Ended January 25, 2025 (Unaudited, amounts in thousands) Wholesale Retail Corporate and Other Total Wholesale Retail Corporate and Other Total Upholstered Furniture $ 286,179 $ 204,808 $ 30,369 $ 521,356 $ 284,175 $ 183,076 $ 31,564 $ 498,815 Casegoods Furniture 14,779 13,959 1,889 30,627 18,316 13,275 1,932 33,523 Delivery 39,396 7,566 2,218 49,180 42,148 8,683 2,030 52,861 Other (1) 26,238 25,601 4,601 56,440 18,359 22,633 5,136 46,128 Total $ 366,592 $ 251,934 $ 39,077 $ 657,603 $ 362,998 $ 227,667 $ 40,662 $ 631,327 Eliminations ( 116,015 ) ( 109,550 ) Consolidated Net Sales $ 541,588 $ 521,777 Nine Months Ended January 24, 2026 Nine Months Ended January 25, 2025 (Unaudited, amounts in thousands) Wholesale Retail Corporate and Other Total Wholesale Retail Corporate and Other Total Upholstered Furniture $ 846,812 $ 555,917 $ 83,341 $ 1,486,070 $ 852,460 $ 529,723 $ 91,827 $ 1,474,010 Casegoods Furniture 51,230 37,278 4,975 93,483 54,366 37,153 7,452 98,971 Delivery 116,001 22,402 6,370 144,773 120,967 24,158 6,306 151,431 Other (1) 74,945 65,530 14,315 154,790 50,002 60,567 15,872 126,441 Total $ 1,088,988 $ 681,127 $ 109,001 $ 1,879,116 $ 1,077,795 $ 651,601 $ 121,457 $ 1,850,853 Eliminations ( 322,819 ) ( 312,517 ) Consolidated Net Sales $ 1,556,297 $ 1,538,336 (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 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; furniture typically found in the dining room, such as dining tables, storage units, and stools; 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 Stores (including company-owned stores), independent retailers, and the end consumer. Contract Assets and Liabilities. We receive customer deposits from end consumers before we recognize revenue and in some cases, we have the unconditional right to collect the remaining portion of the order price before we fulfill our performance obligation, resulting in a contract asset and a corresponding deferred revenue liability. In our consolidated balance sheet, customer deposits and deferred revenue (collectively, the "contract liabilities") are reported in accrued expenses and other current liabilities while contract assets are reported as other current assets. 18 Table of Contents The following table presents our contract assets and liabilities: (Unaudited, amounts in thousands) 1/24/2026 4/26/2025 Contract assets $ 49,888 $ 32,580 Customer deposits $ 97,261 $ 72,894 Deferred revenue 49,888 32,580 Total contract liabilities (1) $ 147,149 $ 105,474 (1) During the nine months ended January 24, 2026, we recognized revenue of $ 101.0 million related to our contract liability balance at April 26, 2025. Note 12: Segment Information We report segment information consistent with the way our chief operating decision maker, (the "CODM"), our Board Chair, President and Chief Executive Officer, evaluates the operating results and performance of the Company. Our reportable operating segments include the Wholesale segment and the Retail segment. Wholesale Segment . Our Wholesale segment consists primarily of four operating segments: La-Z-Boy, our largest operating segment, our England subsidiary, our Casegoods operating segment that sells furniture under three brands (American Drew ® , Hammary ® , and Kincaid ® ), and our international operating segment, which includes our international La-Z-Boy wholesale and manufacturing businesses. We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments. 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 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 226 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. Corporate and Other . Corporate and Other includes the shared costs for corporate functions, including human resources, information technology, finance and accounting, and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy ® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments, including our global trading company in Hong Kong and Joybird, an omni-channel retailer that manufactures upholstered furniture, such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture, such as occasional tables and other accessories. Joybird sells to the end consumer online through its website, www.joybird.com, and through small-format stores in key markets. None of the operating segments included in Corporate and Other meet the requirements of reportable segments. We use operating income to evaluate segment performance and to allocate resources. Segment operating income is based on profit or loss from operations before interest expense, interest income, other income (expense), net and income taxes. The CODM assesses performance by regularly reviewing each segment's significant expense categories which include cost of sales, selling, general and administrative ("SG&A") expenses, and goodwill impairment, if applicable. The accounting policies of the operating segments are the same as those described in our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. We account for intersegment revenue transactions between our segments consistent with independent third-party transactions, that is, at current market prices. As a result, the manufacturing profit related to sales to our Retail segment is included within the Wholesale segment. Operating income realized on intersegment revenue transactions is therefore generally consistent with the operating income realized on our revenue from independent third-party transactions. Identifiable assets are cash and equivalents, accounts receivable, net inventories, net property, plant and equipment, right-of-use lease assets, goodwill and other intangible assets. Our unallocated assets include deferred income taxes, corporate assets (including a portion of cash and equivalents), and various other assets. Asset information is regularly reviewed by the CODM at the consolidated level and segment-level asset information is not used for purposes of making decisions, assessing financial performance, or allocating resources. 19 Table of Contents The following table presents sales and operating income (loss) by segment: Quarter Ended January 24, 2026 (Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated Sales to external customers $ 252,378 $ 251,934 $ 37,276 $ — $ 541,588 Intersegment sales 114,214 — 1,801 ( 116,015 ) — Total sales 366,592 251,934 39,077 ( 116,015 ) 541,588 Cost of sales 279,939 111,646 18,362 ( 101,870 ) 308,077 Gross profit 86,653 140,288 20,715 ( 14,145 ) 233,511 SG&A expenses 67,539 113,766 36,540 ( 14,145 ) 203,700 Operating income (loss) $ 19,114 $ 26,522 $ ( 15,825 ) $ — $ 29,811 Interest expense ( 159 ) Interest income 2,698 Other income (expense), net ( 599 ) Income before income taxes $ 31,751 Quarter Ended January 25, 2025 (Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated Sales to external customers $ 255,028 $ 227,667 $ 39,082 $ — $ 521,777 Intersegment sales 107,970 — 1,580 ( 109,550 ) — Total sales 362,998 227,667 40,662 ( 109,550 ) 521,777 Cost of sales 267,319 101,244 17,859 ( 96,010 ) 290,412 Gross profit 95,679 126,423 22,803 ( 13,540 ) 231,365 SG&A expenses 72,114 101,966 35,657 ( 13,540 ) 196,197 Operating income (loss) $ 23,565 $ 24,457 $ ( 12,854 ) $ — $ 35,168 Interest expense ( 102 ) Interest income 3,465 Other income (expense), net 97 Income before income taxes $ 38,628 Nine Months Ended January 24, 2026 (Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated Sales to external customers $ 771,279 $ 681,127 $ 103,891 $ — $ 1,556,297 Intersegment sales 317,709 — 5,110 ( 322,819 ) — Total sales 1,088,988 681,127 109,001 ( 322,819 ) 1,556,297 Cost of sales 817,517 301,482 47,290 ( 283,838 ) 882,451 Gross profit 271,471 379,645 61,711 ( 38,981 ) 673,846 SG&A expenses 198,126 316,182 110,542 ( 38,981 ) 585,869 Operating income (loss) $ 73,345 $ 63,463 $ ( 48,831 ) $ — $ 87,977 Interest expense ( 389 ) Interest income 9,355 Other income (expense), net ( 1,238 ) Income before income taxes $ 95,705 20 Table of Contents Nine Months Ended January 25, 2025 (Unaudited, amounts in thousands) Wholesale Retail Corporate & Other Intersegment Eliminations Consolidated Sales to external customers $ 770,031 $ 651,601 $ 116,704 $ — $ 1,538,336 Intersegment sales 307,764 — 4,753 ( 312,517 ) — Total sales 1,077,795 651,601 121,457 ( 312,517 ) 1,538,336 Cost of sales 796,309 290,308 51,058 ( 274,695 ) 862,980 Gross profit 281,486 361,293 70,399 ( 37,822 ) 675,356 SG&A expenses 209,393 288,290 109,185 ( 37,822 ) 569,046 Operating income (loss) $ 72,093 $ 73,003 $ ( 38,786 ) $ — $ 106,310 Interest expense ( 411 ) Interest income 11,619 Other income (expense), net ( 2,400 ) Income before income taxes $ 115,118 Quarter Ended Nine Months Ended (Unaudited, amounts in thousands) 1/24/26 1/25/25 1/24/26 1/25/25 Depreciation and Amortization Wholesale segment $ 7,086 $ 6,662 $ 20,175 $ 19,409 Retail segment 3,471 2,672 10,200 8,047 Corporate and Other 1,968 2,042 5,249 7,564 Consolidated depreciation and amortization $ 12,525 $ 11,376 $ 35,624 $ 35,020 Capital Expenditures Wholesale segment $ 9,747 $ 4,584 $ 24,320 $ 20,098 Retail segment 6,673 13,447 26,925 27,557 Corporate and Other 1,390 738 5,492 3,883 Consolidated capital expenditures $ 17,810 $ 18,769 $ 56,737 $ 51,538 Sales by Country (1) United States 91 % 91 % 91 % 90 % Canada 6 % 6 % 5 % 6 % Other 3 % 3 % 4 % 4 % Total 100 % 100 % 100 % 100 % (1) Sales are attributed to countries on the basis of the customer's location. 21 Table of Contents (Unaudited, amounts in thousands) 1/24/26 4/26/25 Assets Wholesale segment $ 650,641 $ 662,987 Retail segment 904,540 727,178 Unallocated assets 531,782 531,997 Consolidated assets $ 2,086,963 $ 1,922,162 Long-Lived Assets by Geographic Location Domestic $ 1,133,927 $ 976,220 International 72,636 72,591 Consolidated long-lived assets $ 1,206,563 $ 1,048,811 Note 13: Income Taxes Our effective tax rate was 31.3 % and 27.8 % for third quarter and nine months ended January 24, 2026, respectively, compared with 25.1 % and 25.6 % for third quarter and nine months ended January 25, 2025. 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. Our effective tax rate varies from the 21% federal statutory rate primarily due to state and foreign taxes. On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBBA"), was signed into law, making several provisions of the Tax Cuts and Jobs Act permanent. Under ASC 740, Income Taxes, the effects of changes in tax laws must be recognized in the period of enactment. Based on current assessments, the provisions of the new law will not 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. Note 14: 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 Nine Months Ended (Unaudited, amounts in thousands, except per share data) 1/24/2026 1/25/2025 1/24/2026 1/25/2025 Numerator (basic and diluted): Net income available to common Shareholders $ 21,650 $ 28,429 $ 68,712 $ 84,625 Denominator: Basic weighted average common shares outstanding 41,084 41,437 41,113 41,733 Contingent common shares 290 471 293 462 Stock option dilution 111 195 118 185 Diluted weighted average common shares outstanding 41,485 42,103 41,524 42,380 Earnings per Share: Basic $ 0.53 $ 0.69 $ 1.67 $ 2.03 Diluted (1) $ 0.52 $ 0.68 $ 1.65 $ 2.00 (1) Diluted earnings per share was computed using the treasury stock method. The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period. 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 third quarter and nine months ended January 24, 2026, we excluded options to purchase 0.2 million shares from the diluted share calculation. For the 22 Table of Contents third quarter and nine months ended January 25, 2025 we did not exclude any outstanding options from the diluted share calculation . Note 15: Fair Value Measurements Accounting standards require that we put financial assets and liabilities into one of three categories based on the inputs we use to value them: • Level 1 — Financial assets and liabilities, the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access. • Level 2 — Financial assets and liabilities, the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability. • Level 3 — Financial assets and liabilities, the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Accounting standards require that in making fair value measurements, we use observable market data when available. When inputs used to measure fair value fall within different levels of the hierarchy, we categorize the fair value measurement as being in the lowest level that is significant to the measurement. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur. In addition to assets and liabilities that we record at fair value on a recurring basis, we are required to record assets and liabilities at fair value on a non-recurring basis. 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 January 24, 2026 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 January 24, 2026 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 2,562 $ — $ 10,064 $ 12,626 Held-to-maturity investments 2,768 — — — 2,768 Total assets $ 2,768 $ 2,562 $ — $ 10,064 $ 15,394 At April 26, 2025 Fair Value Measurements (Unaudited, amounts in thousands) Level 1 Level 2 Level 3 NAV(1) Total Assets Marketable securities $ — $ 2,470 $ — $ 9,824 $ 12,294 Held-to-maturity investments 2,607 — — — 2,607 Total assets $ 2,607 $ 2,470 $ — $ 9,824 $ 14,901 (1) Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology. At January 24, 2026 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. 23 Table of Contents