What changed in this filing

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Item 1. Business

2026-06-16 compared with 2025-06-17 · 95 added, 83 removed, 147 unchanged (55% of the section changed)

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

The La-Z-Boy Furniture Galleries ® stores retail network is the third largest retailer of single-branded furniture in the United States .

We manufacture, market, import, export, distribute and retail upholstery furniture products under the La-Z-Boy ® , England, Kincaid ® , and Joybird ® tradenames.

In addition, we import, distribute and retail accessories and casegoods (wood) furniture products under the Kincaid ® , American Drew ® , Hammary ® , and Joybird ® tradenames.

The La-Z-Boy Stores retail network is the second largest retailer of single-branded furniture in the United States .

We manufacture, market, import, export, distribute and retail upholstery furniture products under the La-Z-Boy ® , England, and Joybird ® tradenames.

In addition, we import, distribute and retail accessories and casegoods (wood) furniture products under the Hammary ® and Joybird ® tradenames.

During fiscal 2026, we also imported, distributed, and retailed accessories and casegoods (wood) furniture products under the Kincaid ® and American Drew ® tradenames, and following the completion of the sale of certain assets of the Kincaid ® and American Drew ® wholesale businesses on May 29, 2026, we continue to retail such products.

Refer to Note 4, Assets Held for Sale and Note 21, Subsequent Events, to our consolidated financial statements for further information.

As of April 25, 2026, our supply chain operations included the following:

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

• Four major manufacturing locations and 9 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

• An upholstery manufacturing business in the United Kingdom and a wholesale sales office that is responsible for distribution of our product in the United Kingdom and Ireland

• A 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

During fiscal 2026 we also operated an upholstery manufacturing business in the United Kingdom and as of the end of fiscal 2026, production and operations in this business have ceased.

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

one that operates a manufacturing facility and another that operates a wholesale sales office.

Additionally, we have contracts with several suppliers in Asia to produce products that support our pure import model for casegoods.

Additionally, we have contracts with several suppliers in Asia to produce products that support our pure import model for Hammary ® casegoods and as of May 29, 2006, a supply arrangement with the acquirer of the Kincaid ® and American Drew ® wholesale businesses to support our continued retail of Kincaid ® and American Drew ® casegoods.

We sell our products through multiple channels:

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

directly to consumers through retail stores that we own and operate;

to furniture retailers or distributors in the United States, Canada, and approximately 45 other countries, including the United Kingdom, China, Australia, and New Zealand;

and through our websites, www.la-z-boy.com and www.joybird.com.

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

◦ La-Z-Boy Furniture Galleries ® stores help consumers furnish their homes by combining the style, comfort, and quality of La-Z-Boy furniture with our available design services.

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

• The centerpiece of our retail distribution strategy is our network of 378 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.

◦ La-Z-Boy Stores help consumers furnish their homes by combining the style, comfort, and quality of La-Z-Boy furniture with our available design services.

We own 230 of the La-Z-Boy Stores, while the remainder are independently-owned and operated.

◦ La-Z-Boy Comfort Studio ® locations are defined spaces within larger independent retailers that are dedicated to displaying and selling La-Z-Boy branded products, while La-Z-Boy branded space locations display a curated selection of La-Z-Boy branded products within larger independent dealers.

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

◦ In total, we have approximately 7.7 million square feet of proprietary floor space dedicated to selling La-Z-Boy branded products in North America within our La-Z-Boy Furniture Galleries ® stores and La-Z-Boy Comfort Studio ® locations.

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

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

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

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

◦ In total, we have approximately 8 million square feet of proprietary floor space dedicated to selling La-Z-Boy branded products in North America within our La-Z-Boy Stores and La-Z-Boy Comfort Studio ® locations.

◦ We also have approximately 3 million square feet of floor space outside of North America dedicated to selling La-Z-Boy branded products.

• Our other brands, England and Hammary ® (and during fiscal 2026, Kincaid ® and American Drew ® ) enjoy distribution through many of the same outlets, with over half of Hammary’s sales originating through the La-Z-Boy Store network.

◦ During fiscal 2026, Kincaid and England had their own dedicated proprietary in-store programs with 684 outlets and approximately 2 million square feet of proprietary floor space.

◦ During the second quarter of fiscal 2026, the Company committed to a plan to dispose of a portion of our Casegoods wholesale business.

During the third quarter of fiscal 2026, the Company completed the sale of the upholstery portion of the Casegoods business and during the first quarter of fiscal 2027, the Company completed the sale of the remaining portion of the Casegoods wholesale business recorded as held for sale as of April 25, 2026.

Refer to Note 4, Assets Held for Sale, and Note 21, Subsequent Events, to our consolidated financial statements for further information.

• Joybird sells product online, in 15 small-format stores in key markets, and through other distribution channels.

Principal Products and Industry Segments

Our reportable operating segments include the Retail segment and the Wholesale segment.

Our Retail segment primarily sells upholstered furniture, in addition to some casegoods and other home furnishing accessories, to end consumers through our company-owned La-Z-Boy Furniture Galleries ® stores.

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

Our Retail segment primarily sells upholstered furniture, in addition to some casegoods and other home furnishing accessories, to end consumers through our company-owned La-Z-Boy Stores.

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

We have provided additional detailed information regarding our segments and their products in Note 17, Segment Information, to our consolidated financial statements and Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, both of which are included in this report.

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

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

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

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

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

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

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

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

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

We use these suppliers primarily for their product design capabilities and to balance our mix of in-sourced and out-sourced production.

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During fiscal 2026, the cost of materials and parts used for manufacturing decreased across several categories.

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

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

In fiscal 2027, we anticipate potential price increases across various commodities due to economic and geopolitical volatility, tariff and trade policies, and general inflation related to our core materials.

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

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

Finished Goods Imports

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

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

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

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

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

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

Imported finished goods represented 5% and 6% of our consolidated sales in fiscal 2026 and 2025, respectively.

As the majority of our finished goods imports relate to our Casegoods wholesale business, and because the Company has disposed of a significant portion of this business in the first quarter of fiscal 2027, we anticipate the costs of these products will have a

minimal impact in fiscal 2027.

Refer to Note 21, Subsequent Events, for further information on the disposal of a portion of the Casegoods wholesale business.

In fiscal 2026, we purchased over 90% of this imported product from Vietnam, with the vast majority coming from five major suppliers.

The prices we paid for imported products, including associated transportation, increased during 2026 compared with fiscal 2025, primarily due to the implementation of tariffs in the first half of the fiscal year along with higher ocean freight costs in the second half of the fiscal year resulting from rising fuel prices.

Tariff Exposure

In fiscal 2026, approximately 90% of the upholstered units sold in North America were produced in the United States.

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

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

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

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

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

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

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

While we remain subject to certain tariffs on most products directly imported into the United States, the exposure to our cost of goods in fiscal 2026 was minimal overall.

With regards to our imported finished goods, while the vast majority of our imported casegoods product was sourced directly from Vietnam during fiscal 2026, given the size of this business relative to the entire Company, the exposure to our cost of goods in fiscal 2026 was also minimal.

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

In February 2026, the U.S.

Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economics Powers Act ("IEEPA").

As a result of this ruling, we are eligible for a refund of tariffs previously paid on imported goods.

The ultimate availability, timing, and amount of potential refunds of such tariffs remains uncertain and could be subject to further legal, regulatory, and administrative developments or actions and as such, we have not recorded any potential refunds in our fiscal 2026 consolidated financial statements.

We continue to monitor these developments and their potential impact on our results of operations.

Seasonal Business

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During the summer months, the furniture industry generally experiences weaker demand, and as such we typically shut down our domestic plants for one week each fiscal year to perform routine maintenance on our equipment.

Accordingly, for our wholesale business, the first quarter is usually the Company's weakest quarter in terms of sales and earnings.

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

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

Accordingly, the first quarter is usually the Company's weakest quarter in terms of sales and earnings for both our wholesale and retail businesses.

During fiscal 2026, we experienced our highest sales in the fourth quarter for both our wholesale and retail businesses and we anticipate typical seasonality for both our wholesale and retail businesses in fiscal 2027.

Economic Cycle and Purchasing Cycle

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Finished goods inventory is maintained at our distribution centers as well as our manufacturing locations.

Our distribution centers allow us to streamline the warehousing and distribution processes for our La-Z-Boy Furniture Galleries ® store network, including both company-owned stores and independently-owned stores.

Our distribution centers also allow us to reduce the number of individual warehouses needed to supply our retail outlets and help us reduce inventory levels at our manufacturing and retail locations.

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

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

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

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

For our casegoods business within our Wholesale segment, during fiscal 2026 we imported wood furniture from Asian vendors, resulting in long lead times on these products.

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

As noted above, the Company has disposed of a significant portion of this business in the first quarter of fiscal 2027.

Refer to Note 21, Subsequent Events, for further information on the disposal of a portion of the Casegoods wholesale business.

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

Our Joybird business maintains raw materials and work-in-process inventory at its manufacturing location.

Joybird finished goods inventory is maintained at our distribution centers, at its manufacturing and warehouse locations, or in-transit to the end consumer.

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

Joybird finished goods inventory is maintained at our distribution centers and at its manufacturing and warehouse locations.

Our inventory decreased $36.8 million as of year end fiscal 2026 compared with year end fiscal 2025, primarily due to lower Casegoods inventory and the closure of the United Kingdom manufacturing business.

Additionally, as of the end of fiscal 2026, $16.6 million of inventory in the Casegoods wholesale business was reclassified to assets held for sale (refer to Note 4, Assets Held for Sale, to our consolidated financial statements for further information).

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

Accounts Receivable:

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

Our accounts receivable decreased $8.5 million as of year end fiscal 2026 compared with year end fiscal 2025, primarily due to lower volume in the Casegoods business, along with $2.4 million of accounts receivable in the Casegoods wholesale business that has been reclassified to assets held for sale (refer to Note 4, Assets Held for Sale, to our consolidated financial statements for further information).

Additionally, our allowance for receivable credit losses at the end of fiscal 2026 was relatively flat compared with the end of fiscal 2025.

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Accounts Payable:

Our accounts payable decreased $0.5 million as of year end fiscal 2025 compared with year end fiscal 2024, primarily reflecting lower inventory purchases.

Our accounts payable increased $5.9 million as of year end fiscal 2026 compared with year end fiscal 2025, primarily reflecting the timing of raw material purchases at the end of the fiscal 2026, partially offset by reduced inventory purchases related to the planned disposal of our Casegoods wholesale business.

Customer Deposits:

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

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

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

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

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

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

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

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

Customer deposits increased $5.0 million as of fiscal year end 2026 compared with fiscal year end 2025, primarily due to our fiscal 2026 Retail acquisition.

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

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

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

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

Maintaining, updating, and, when appropriate, expanding our proprietary distribution network is a key part of our overall sales and marketing strategy.

Maintaining, updating, and expanding our proprietary distribution network is a key part of our overall sales and marketing strategy.

We intend, over the long-term, to not only increase the number of stores in the network but also to continue to improve their quality, including upgrading old-format stores to our new concept design through remodels and relocations.

We continue to maintain and update our current stores to improve the quality of the network.

During fiscal 2025 the La-Z-Boy Furniture Galleries ® store network opened 15 new stores and relocated or remodeled 29 stores.

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

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

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

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

These La-Z-Boy

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

During fiscal 2026 the La-Z-Boy Store network opened 12 net new stores and relocated or remodeled 18 stores.

In fiscal 2027, the La-Z-Boy Store network further plans to open 9 to 12 stores and relocate or remodel 30 to 35 stores, all of which will feature our latest store designs.

In addition to our company-owned La-Z-Boy Stores, independent dealers for our proprietary La-Z-Boy Store network provide distribution in specific geographical areas and enable us to concentrate our marketing to a dedicated product line across the

entire network benefitting La-Z-Boy, these dealers, and our consumers.

It also enables dealers within this proprietary group to benefit from proven best practices used successfully by other proprietary dealers, while providing forums where they can share insights and experiences.

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

We also have formal agreements with many furniture retailers for them to display and merchandise products from one or more of our operating units and sell them to consumers in dedicated retail space, or La-Z-Boy Comfort Studio ® locations within their stores.

We consider this dedicated space to be "proprietary." In fiscal 2026, approximately 60% of our Wholesale segment sales were through proprietary channels.

In addition, we display a curated selection of La-Z-Boy branded products within larger independent dealers, designated as La-Z-Boy branded spaces.

During fiscal 2027 we plan to open or update approximately 80 La-Z-Boy Comfort Studio ® locations and 30 branded space locations.

Delivery Network and Warehousing

As of April 25, 2026, our delivery network primarily consists of nine distribution centers located throughout the United States.

Our distribution centers allow us to streamline the warehousing and distribution processes for our La-Z-Boy Store network, including both company-owned stores and independently-owned stores.

Our distribution centers also allow us to reduce the number of individual warehouses needed to supply our retail outlets and help us reduce inventory levels at our manufacturing and retail locations.

During fiscal 2026, we started a multi-year distribution and home delivery transformation project intended to design and build an even more effective delivery network for our business.

This transformation project has already delivered meaningful progress, reducing our distribution centers by six locations as of April 25, 2026 and upon completion, the network will consist of three centralized hubs supported by small format cross docks strategically positioned near our customers and consumers.

The project further intends to reduce mileage of inventory traveled across our network, allows us to reach a broader consumer base and decrease our reliance on third party providers, enables improved inventory productivity and working capital levels, and increases the agility of our supply chain to more optimally service our current store footprint with flexibility for growth.

While we anticipate that this project will lead to operating margin expansion when completed, given the early stages of our investment, in fiscal 2026 we incurred, and will continue to incur, friction costs that impact our operating profits.

Orders and Backlog

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

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

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

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

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

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

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

Our wholesale backlog was $74.9 million as of April 25, 2026, compared with $119.5 million as of April 26, 2025.

This decrease was primarily due to the timing of incoming orders and deliveries at each fiscal year end along with deliveries outpacing incoming orders in fiscal 2026 as a result of lower consumer demand in the current macroeconomic environment.

Competitive Conditions

We are one of the largest manufacturer/distributors of residential (living and family room, bedroom, and dining room) furniture in the United States, as measured by annual sales volume.

The home furnishings industry competes primarily on the basis of product styling and quality, comfort, customer service (product availability and delivery), price, and location.

The home furnishings industry competes primarily on the basis of product styling, quality, comfort, customer service (product availability and delivery), price, and location.

We compete by emphasizing our brand and the comfort, quality, styling, customization, value of our products, and our available design services.

In addition, we remain committed to innovation while striving to provide outstanding customer service, exceptional dealer support, and efficient on-time delivery.

Maintaining, updating, and expanding our proprietary distribution system, including identifying desirable retail locations, is a key strategic initiative for us in striving to remain competitive.

Maintaining, updating, and expanding our proprietary distribution system, including identifying desirable retail locations, is a key strategic initiative for us.

We compete in the mid to upper-mid price point, and a shift in consumer taste and trends to lower-priced products could negatively affect our competitive position.

Additionally, our wholesale business faces increased market pressures from foreign manufacturers entering the United States market and increased direct purchases from foreign suppliers by large United States retailers.

The La-Z-Boy Furniture Galleries ® stores operate in the retail furniture industry in the United States and Canada, and different stores have different competitors based on their geographic locations.

The La-Z-Boy Stores operate in the retail furniture industry in the United States and Canada, and different stores have different competitors based on their geographic locations.

In addition, alternative distribution channels have increasingly affected our retail markets.

Direct-to-consumer brands bypass brick and mortar retailers entirely, or in some cases, have developed a product that can be shipped more easily than traditional upholstered furniture, thus increasing competition for our products.

Direct-to-consumer brands bypass brick and mortar retailers entirely, or in some cases, have developed a product

that can be shipped more easily than traditional upholstered furniture, thus increasing competition for our products.

The increased ability of consumers to purchase furniture through various furniture manufacturers' and digital-only retailers' internet websites has also increased competition in the industry.

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

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

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

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

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We employed approximately 10,200 full-time equivalent employees at the end of fiscal 2026, compared with approximately 10,600 employees at the end of fiscal 2025.

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

The decrease in headcount was driven by the disposal of a portion of our Casegoods business, the closure of our United Kingdom manufacturing business, and reduced headcount in our Mexico operations, all of which are a part of our broader business realignment and supply chain optimization strategies.

This reduction was slightly offset by the growth in our Retail segment through acquisitions and net new stores.

As of the end of fiscal 2026 we employed approximately 7,600 employees in our Wholesale segment, 1,850 in our Retail segment, 450 in our Joybird business, with the remaining employees being corporate personnel.

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Our teams are committed to our core values of Courage, Curiosity and Compassion.

We are not afraid to try new things, we are relentless in our mission to understand our business and consumers, and we honor our almost 100-year legacy that was built on family.

We are not afraid to try new things, we are relentless in our mission to understand our business and consumers and, as we approach our 100-year anniversary in March of 2027, we continue to honor the legacy of comfort that has defined us from the beginning.

Sustainability

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

• Human-Centered Approach .

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

• Lean Manufacturing .

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

• Human-Centered Approach .

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

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

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

Employees also undergo annual

training on ethics and the Code of Conduct.

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

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

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

Safety and Health

We prioritize the health and safety of our employees, partners and the people in communities where we operate.

Occupational Health and Safety

We prioritize the health and safety of our employees, partners and the other people in communities where we operate.

As the largest industrial manufacturer in many regions where we do business, we recognize our potential impact on surrounding communities.

2 unchanged sentences

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

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

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

Training and Development

10 unchanged sentences

Throughout our 99-year history, giving back to our communities has been woven through La-Z-Boy Incorporated’s culture following the example set by our founders.

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

When it comes to giving, our vision is to improve the lives of others by developing exceptional programs based on partnerships where employees feel a sense of connection and pride in their communities and our mission is to enhance the quality of life in the communities in which we live and serve through leadership, financial contributions, and volunteer efforts.

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

8 unchanged sentences

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

What changed 10-K

Item 1. Business