Financial Analysis

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, 2025, and 2024 reflect a core component of our strategic priorities, which is to grow our company-owned retail business and leverage our 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, 2025, and 2024, we licensed to the counterparty the exclusive right to own and the 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 of these arrangements resulted …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Note 10: 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 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 Companys 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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue disaggregated by product category and by segment or unit: Year Ended April 25, 2026 (Amounts in thousands) Wholesale Retail Corporate and Other Total Upholstered Furniture $ 1,149,011 $ 775,345 $ 110,739 $ 2,035,095 Casegoods Furniture 67,010 51,159 6,668 124,837 Delivery 158,895 31,154 8,297 198,346 Other (1) 107,296 93,029 18,046 218,371 Total $ 1,482,212 $ 950,687 $ 143,750 $ 2,576,649 Eliminations (450,014) Consolidated Net Sales $ 2,126,635 Year Ended April 26, 2025 (Amounts in thousands) Wholesale Retail Corporate and Other Total Upholstered Furniture $ 1,171,445 $ 731,254 $ 121,972 $ 2,024,671 Casegoods Furniture 72,041 50,635 9,191 131,867 Delivery 166,244 33,502 8,403 208,149 Other (1) 70,089 82,979 20,909 173,977 Total $ 1,479,819 $ 898,370 $ 160,475 $ 2,538,664 Eliminations (429,457) Consolidated Net Sales $ 2,109,207 (1) Primarily includes tariff and other surcharges, revenue for advertising, royalties, parts, accessories, after-treatment products, surcharges, rebates and other sales incentives.

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Note 14: Stock-Based Compensation In fiscal 2025, our shareholders approved the La-Z-Boy Incorporated 2024 Omnibus Incentive Plan which provides for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units, unrestricted stock, performance awards, dividend equivalent rights, and short-term cash incentive awards. Under this plan, the aggregate number of common shares that may be issued through awards of any form is 3.1 million shares, reduced by the number of shares subject to awards granted under the La-Z-Boy Incorporated 2022 Omnibus Incentive Plan after April 27, 2024 and prior to the Annual Meeting of Shareholders of La-Z-Boy Incorporated held on August 27, 2024. The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants. Stock-based compensation expense is recorded in SG&A expense in the consolidated statement of income: Fiscal Year Ended (52 weeks) (52 weeks) (52 weeks) (Amounts in thousands) 4/25/2026 4/26/2025 4/27/2024 Equity-based awards expense Restricted stock $ 8,389 $ 8,897 $ 6,959 Performance-based shares 5,836 6,276 5,109 Stock options 286 924 1,257 Restricted stock units issued to Directors 1,177 1,303 1,101 Total equity-based awards expense 15,688 17,400 14,426 Liability-based awards expense (1) (54) 91 152 Total stock-based compensation expense $ 15,634 $ 17,491 $ 14,578 (1) Includes deferred stock units issued to Directors, restricted stock units, and performanc …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 20: 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Note 7: 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 We test 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 it may be impaired. Under US GAAP, we have the option to first assess qualitative factors in order to determine if it is more likely than not that the fair value of one of our reporting units is greater than its carrying value (""Step 0""). If the qualitative assessment leads to a determination that the reporting units fair value is less than its carrying value, or if we elect to bypass the qualitative assessment altogether, we are required to perform a quantitative impairment test (""Step 1"") by calculating the fair value of the reporting unit and comparing the fair value with its associated carrying value. Step 0 Assessment During our fiscal 2026 annual impairment test, we first assessed goodwill recoverability qualitatively using the Step 0 approach for each of our reporting units. For our qualitative assessment, we considered the most recent quantitative analysis, which was performed during the fourth quarter of fiscal 2025 for the Joybird reporting unit and during the fourth quarter of fiscal 2020 for the Retail reporting unit, including assumptions used, su …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 18: Income Taxes Income before income taxes consists of the following: Fiscal Year Ended (52 weeks) (52 weeks) (52 weeks) (Amounts in thousands) 4/25/2026 4/26/2025 4/27/2024 United States $ 136,363 $ 160,472 $ 145,854 Foreign 2,442 (13,338) 19,898 Total $ 138,805 $ 147,134 $ 165,752 Income tax expense (benefit) consists of the following components: Fiscal Year Ended (52 weeks) (52 weeks) (52 weeks) (Amounts in thousands) 4/25/2026 4/26/2025 4/27/2024 Federal Current $ 7,844 $ 28,002 $ 29,637 Deferred 16,712 2,197 (1,529) State Current 5,803 8,807 9,823 Deferred 1,798 578 (318) Foreign Current 3,930 4,280 4,534 Deferred (193) 2,318 (1,031) Total income tax expense $ 35,894 $ 46,182 $ 41,116 Our effective tax rate differs from the U.S. federal income tax rate for the following reasons: Fiscal Year Ended (52 weeks) 4/25/2026 (Amounts in thousands) Amount Percentage US Federal Statutory Tax Rate $ 29,086 21.0 % Domestic State and Local Income Taxes, net of Federal Benefit (1) 6,035 4.3 % Foreign Tax Effects United Kingdom Nondeductible operating losses 2,752 2.0 % Other (272) (0.2) % Other foreign jurisdictions 1,081 0.8 % Effects of Cross-Border Transactions (1,095) (0.8) % Tax Credits (726) (0.5) % Nontaxable or Nondeductible Items Nondeductible asset impairment 4,193 3.0 % Nondeductible executive compensation 1,611 1.2 % Other (307) (0.2) % Changes in Unrecognized Tax Benefits 167 0.1 % Other Adjustments US federal tax effects of United Kingdom plant closure (5,851) (4. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 13: Commitments and Contingencies We have been named as a defendant in various lawsuits arising in the ordinary course of business and as a potentially responsible party at certain environmental clean-up sites, the effect of which are not considered significant. Based on a review of all currently known facts and our experience with previous legal and environmental matters, we have recorded expense in respect of probable and reasonably estimable losses arising from legal matters, and we currently do not believe it is probable that we will have any additional loss for legal or environmental matters that would be material to our consolidated financial statements. In view of the inherent difficulty of predicting the outcome of litigation, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories, we generally cannot predict the eventual outcome, timing, or related loss, if any, of pending matters.

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"Note 6: Leases The Company leases real estate for retail stores, distribution centers, warehouses, manufacturing plants, showrooms and office space. We also have equipment leases for tractors/trailers, IT and office equipment, and vehicles. We determine if a contract contains a lease at inception based on our right to control the use of an identified asset and our right to obtain substantially all the economic benefits from the use of that identified asset. Most of our real estate leases include options to renew or terminate early. We assess these options to determine if we are reasonably certain of exercising these options based on all relevant economic and financial factors. Any options that meet these criteria are included in the lease term at lease commencement. Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our right of use (""ROU"") lease asset and lease liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. If an interest rate is implicit in a lease, we will use that rate as the discount rate for that lease. Some of our leases contain variable rent payments based on a Consumer Price Index or percentage of sales. Due to the variable nature of these costs, they are not included in the measurement of the ROU lease asset and lease liability. Supplemental balance sheet information pertaining to our leases is as follows: (Amounts in thousands) 4/25/20 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Accounting Pronouncement 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): Disaggr …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 11: Employee Benefits The table below summarizes the total costs associated with our employee benefit plans. Fiscal Year Ended (52 weeks) (52 weeks) (52 weeks) (Amounts in thousands) 4/25/2026 4/26/2025 4/27/2024 401(k) Retirement Plan $ 17,247 $ 16,482 $ 14,698 Performance Compensation Retirement Plan (1) 439 497 (133) Deferred Compensation Plan (2) (187) (276) (86) Non-Qualified Defined Benefit Retirement Plan (3) 673 678 737 (1) Performance Compensation Retirement Plan includes forfeitures. (2) Includes (gain)/loss on investments held to fund compensation/retirement plans and administrative fees. (3) Primarily related to interest cost. 401(k) Retirement Plan . Voluntary 401(k) retirement plans are offered to eligible employees within certain U.S. operating units. For most operating units, we make matching contributions based on specific formulas. Performance Compensation Retirement Plan. A performance compensation retirement plan (""PCRP"") is maintained for eligible highly compensated employees. Beginning in fiscal 2023, contributions into the plan are no longer being made. Prior year contributions were based on achievement of performance targets. Employees vest in these prior period contributions if they achieve certain age and years of service with the Company and can elect to receive benefit payments over a period ranging between five to twenty years after they leave the Company. While the Company no longer makes contributions, the outstanding liability balance r …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 16: Revenue Recognition The following table presents our revenue disaggregated by product category and by segment or unit: Year Ended April 25, 2026 (Amounts in thousands) Wholesale Retail Corporate and Other Total Upholstered Furniture $ 1,149,011 $ 775,345 $ 110,739 $ 2,035,095 Casegoods Furniture 67,010 51,159 6,668 124,837 Delivery 158,895 31,154 8,297 198,346 Other (1) 107,296 93,029 18,046 218,371 Total $ 1,482,212 $ 950,687 $ 143,750 $ 2,576,649 Eliminations (450,014) Consolidated Net Sales $ 2,126,635 Year Ended April 26, 2025 (Amounts in thousands) Wholesale Retail Corporate and Other Total Upholstered Furniture $ 1,171,445 $ 731,254 $ 121,972 $ 2,024,671 Casegoods Furniture 72,041 50,635 9,191 131,867 Delivery 166,244 33,502 8,403 208,149 Other (1) 70,089 82,979 20,909 173,977 Total $ 1,479,819 $ 898,370 $ 160,475 $ 2,538,664 Eliminations (429,457) Consolidated Net Sales $ 2,109,207 (1) Primarily includes tariff and other surcharges, revenue for advertising, royalties, parts, accessories, after-treatment products, surcharges, 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. Cas …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Note 17: 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 cons …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 1: Accounting Policies The following is a summary of significant accounting policies followed in the preparation of La-Z-Boy Incorporated and its subsidiaries' (individually and collectively, ""we,"" ""our,"" ""us,"" ""La-Z-Boy"" or the ""Company"") consolidated financial statements. Our fiscal year ends on the last Saturday of April. Our 2026, 2025 and 2024 fiscal years included 52 weeks. Principles of Consolidation The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries. The portion of less than wholly-owned subsidiaries is included as non-controlling interest. All intercompany transactions have been eliminated, including any related profit on intercompany sales. Use of Estimates The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect the reported amounts or disclosures of assets, liabilities (including contingent liabilities), sales, and expenses at the date of the financial statements. Actual results could differ from those estimates. Cash and Equivalents For purposes of the consolidated balance sheet and statement of cash flows, we consider all highly liquid debt instruments purchased with initial maturities of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fai …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 21: Subsequent Events Business Realignment On May 29, 2026, we completed the sale of the remaining assets held for sale within the Casegoods disposal group as described in Note 4, Assets Held for Sale, which includes the Kincaid and American Drew wholesale businesses. The terms of the final purchase agreement are consistent with amounts recognized in the financial statements as of April 25, 2026 and therefore we expect this transaction to have an immaterial impact on our consolidated financial statements during the first quarter of fiscal 2027. The sale of this business does not meet the requirements to be classified as discontinued operations as the disposition does not represent a strategic shift that will have a material effect on the Companys operations and financial results. Supply Chain Optimization During the first quarter of fiscal 2027, we announced the planned closure of our leased upholstery assembly plant in San Luis Rio Colorado, Mexico, with operations expected to cease by the end of the first quarter of fiscal 2027. Additionally, we announced the planned closure of our leased Joybird manufacturing plant in Tijuana, Mexico, with all manufacturing operations expected to transfer to our U.S. plants by the end of fiscal 2027. We have evaluated the implications of these actions on the consolidated financial statements as of April 25, 2026 and concluded that these events do not require recognition in fiscal 2026. The financial impact of these actions will primar …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

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 of these arrangements resulted in no …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"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 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 Companys 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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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, royalt …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 yea …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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, …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"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."

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"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 Ex …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"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 …

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"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 con …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing