Global upholstery manufacturer La-Z-Boy Incorporated has reported a decline in first quarter sales driven by a transition in its international wholesale division.
According to its latest trading update for the first quarter ended 26 July 2025, total sales fell 1% to $492m from $495m against the same period last year.
Operating margin stood at 4.5%, down from 6.5%, while adjusted net income resulted at $19.3m, down 27% from $26.4m.
Delivered retail segment sales increased 2% to $207m, while wholesale sales rose 1% to $353m.
“Growth in our Retail and Wholesale business were more than offset by lower delivered sales in our Joybird business and in our international wholesale business due to a significant customer transition that began in the second quarter of fiscal 2025,” the company said.
Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said: “We were pleased to deliver sales and margin growth in our Wholesale segment for the quarter, primarily driven by our core North America La-Z-Boy wholesale business. In addition, our Retail segment grew delivered sales and written sales for the quarter.
“On top of this, during the quarter we announced the acquisition of a 15-store network in the Southeast region, further highlighting the multiple levers we have to grow our business. Investments in our Century Vision strategy to grow our Retail store footprint and expand brand reach, combined with soft industry demand, had a downward impact on our margin performance this quarter, and we are actively taking steps to adjust our near-term operations and prudently navigate the current environment.
“Our iconic brand, vertically integrated business model, and robust balance sheet are foundational to our continued strategic growth and position us to disproportionately benefit when industry tailwinds reemerge.
“Demonstrating our continued progress on strengthening our core, we are pleased to have recently been named by Newsweek as one of America’s Best Retailers in 2025, ranking #1 in the furniture category for the first time in our history.
“This recognition is a testament to our talented and dedicated team and our continued focus on further strengthening our product offerings, customer service, and in-store experience. In addition, we formally launched our new brand identity last week rooted in our heritage of comfort and craftsmanship. The new identity serves as a symbol of change, a signal of vitality, and a platform for growth for the brand, and we are excited about the opportunities ahead.
“While continuing to advance our Century Vision strategy and drive long-term shareholder value, we are balancing our optimism in the long-term industry fundamentals and our competitive positioning with a pragmatic approach to current uneven consumer demand.
“In addition to strengthening our core business, we are also evaluating all alternatives to address financial pressure from non-core parts of our enterprise.”
