Question · Q2 2026
Taylor Zeckan, speaking for Brad Thomas of KeyBanc Capital Markets, asked about underlying demand trends heading into fiscal Q3, considering mixed November results and a stronger comparable period last year. Zeckan also inquired about promotional intensity in the market and the company's capital allocation strategy for fiscal 2026, particularly regarding reinvestments versus shareholder returns, given the non-core business exits.
Answer
Melinda Whittington, Chair, President, and CEO, acknowledged the challenging consumer environment and choppy demand, noting the difficult comparison to last year's post-election November. Whittington described a very active promotional marketplace with deeper, traffic-driving price points at tentpole events like Labor Day, while also observing strong design sales for high-end products. Taylor Liebke, SVP and CFO, stated it's too early to detail fiscal 2026 capital allocation changes but reiterated the focus on reinvestment in the business (acquisitions, CapEx for distribution transformation, new stores) for the current year, alongside continued double-digit dividend increases.
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