Taylor Zwick's questions to La-Z-Boy Inc (LZB) leadership • Q1 2026
Question
Taylor Zwick of KeyBanc Capital Markets inquired about the sequential improvement in sales trends during Q1, the outlook for August, the impact of new stores on retail margins, and feedback from wholesale customers regarding tariff uncertainties.
Answer
CEO Melinda Whittington confirmed that sequential traffic improvement from Q1 continued into early August but remained cautious, citing ongoing consumer pressure. CFO Taylor Luebke explained that new stores are a drag on profitability in year one but become accretive by year three, though the primary Q1 margin pressure came from traffic deleverage. Whittington added that the wholesale segment grew, benefiting from its North American supply chain which insulates it from tariff volatility and positions it as a reliable partner for customers.