La-Z-Boy reaffirms Joybird support as sales edge up

La-Z-Boy reported flat consolidated sales for its fiscal fourth quarter ended April 25, though operating margins improved and full-year revenue rose slightly.

The company posted $570 million in sales for the quarter, down marginally from the same period last year. Operating margin climbed to 7.2% from 5.2%, surpassing internal forecasts. Full-year sales totaled $2.13 billion, marking a 1% increase over the previous year.

CEO Melinda Whittington called the year’s finish strong, crediting execution across business units. “We continue to drive our own momentum and are playing offense, led by our retail business expansion,” she said.

The retail segment, which includes 230 company-owned stores, saw written sales jump 11% in the quarter. Growth stemmed from four new store openings and acquisitions. Same-store sales dipped 2%, an improvement from earlier periods, as higher conversion rates and average ticket sizes offset weaker foot traffic. Delivered sales in the segment increased 9%.

Wholesale sales fell 2% to $393 million, reflecting broader industry softness. CFO Taylor Luebke described demand as uneven but expected the downturn to be temporary. “We have plans to mitigate,” he said.

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Joybird, the mid-century modern direct-to-consumer brand La-Z-Boy acquired in 2018, recorded a 2% rise in written sales but a 10% drop in delivered sales, which reached $32 million. Whittington acknowledged volatility among Joybird’s core customers but stressed disciplined investments in the brand. “We’re positioning it for sustainable long-term success,” she told investors.

The Century Vision strategy, launched in 2022, targets sales and market share growth at double the industry rate. In fiscal 2026, La-Z-Boy opened more stores than ever before, adding 15 new locations and acquiring 15 others. It now owns 61% of its store network.

Whittington pointed to Joybird’s digital-native roots as an advantage in expansion. “Every time we open a store, and because that consumer is so digitally native, we know where to open those stores,” she said. “When we do, they’re almost immediately profitable for the overall Joybird portfolio.”

La-Z-Boy aims to open 10 new stores annually, targeting 450 locations from its current 380. Most growth will come from company-owned stores. The retailer is also watching tariffs and trade policy shifts but noted its U.S.-based production—90% of its upholstery manufacturing—protects it from some industry pressures. It closed its U.K. manufacturing operations in fiscal 2026.

The company remains the 288th largest ecommerce retailer in North America, according to Digital Commerce 360’s Top 2000 Database.

Luebke’s optimism about wholesale demand matches broader industry trends, though some analysts doubt the rebound will happen as quickly as executives predict. Furniture retailers have faced uneven demand since 2023, with high interest rates and shifting consumer habits squeezing discretionary purchases.

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Vertical integration has helped La-Z-Boy manage these challenges. Controlling manufacturing, retail, and distribution allows it to adjust pricing and promotions in real time, supporting margins.

Joybird’s difficulties highlight the challenges of scaling a digitally native brand in a post-pandemic economy. While store openings have succeeded, the decline in delivered sales suggests consumers may be cutting back on big-ticket items. Whittington’s focus on careful investments reflects caution even as the company grows its physical footprint.

The furniture market’s recovery remains patchy. Home office furniture demand has cooled after pandemic-driven growth, while outdoor and modular pieces have fared better. La-Z-Boy’s bet on upholstery—a category less tied to discretionary spending—could benefit if consumer confidence stabilizes.

For now, the company relies on retail expansion and operational efficiency to counter wholesale weakness.

Success may hinge on external factors beyond its control.