LaZBoy Incorporated delivered a solid Q2 2026, underscoring resilience in a discretionary durable goods category. Revenue reached $522.48 million, up 5.44% year over year and 6.15% quarter over quarter, driven by a sustained demand environment and favorable product mix. Gross profit was $231.14 million with a gross margin of 44.24%, up from prior periods, and operating income of $36.18 million yielding an operating margin of 6.92%. Net income totaled $28.86 million, producing a net margin of 5.52% and diluted earnings per share (EPS) of $0.70, up 12.9% YoY and 59.1% QoQ.
Key Performance Indicators
Revenue
Increasing
522.48M
QoQ: 6.15% | YoY: 5.44%
Gross Profit
Increasing
231.14M
44.24% margin
QoQ: 10.49% | YoY: 8.34%
Operating Income
Increasing
36.18M
QoQ: 64.55% | YoY: 11.77%
Net Income
Increasing
28.86M
QoQ: 58.53% | YoY: 10.32%
EPS
Increasing
0.70
QoQ: 59.09% | YoY: 12.90%
Revenue Trend
Margin Analysis
Financial Highlights
Liquidity and cash generation remain a strength. Operating cash flow was $50.03 million in the quarter, with capital expenditures of $20.47 million and free cash flow of $29.57 million, yielding a 5.66% free cash flow margin for the quarter. The balance sheet shows $338.51 million in cash and cash equivalents and total assets of $1.959 billion. Total debt stood at $502.92 million, with net debt of $164.41 million after cash on hand. The company maintained a healthy current ratio of ~1.94 and a quick ratio near 1.12, indicating solid short-term liquidity. Equity stood at $1.0396 billion, with a leverage profile of approximately 0.48x debt-to-equity and a robust interest-coverage profile given minimal interest expense (approximately $0.11 million).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
522.48M
5.44%
6.15%
Gross Profit
231.14M
8.34%
10.49%
Operating Income
36.18M
11.77%
64.55%
Net Income
28.86M
10.32%
58.53%
EPS
0.70
12.90%
59.09%
Key Financial Ratios
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