La-Z-Boy Incorporated has announced its acquisition of a 15-store La-Z-Boy Furniture Galleries® store network in the southeast region of the United States from Atlanta Furniture Galleries, LLC. The acquisition is expected to bring in approximately $80 million in annual sales and is set to close in late October 2025. The addition of these stores will increase the company's total company-owned store count to 220, representing 60% of the entire La-Z-Boy Furniture Galleries® store network.
This acquisition is deemed significant as it adds designated market areas that will enable further new store growth in the highly desirable southeast region. Additionally, it marks the largest independently owned La-Z-Boy Furniture Galleries® acquisition in La-Z-Boy Incorporated's history, paving the way for additional growth in core markets such as Atlanta, Orlando, Jacksonville, and Knoxville.
The transaction is expected to be funded with cash on hand, and the company anticipates that the acquisition will contribute approximately $40 million of additional sales annually to the consolidated basis. Further financial details relating to the transaction will be provided in the company's fiscal year 2026 second-quarter results in November 2025.
In a separate update, the company has revised its fiscal first quarter sales and adjusted operating margin outlook to be around the low end of the previously-issued ranges, citing the increasingly challenging consumer and macro environment.
Today the company's shares have moved -1.33% to a price of $38.70. Check out the company's full 8-K submission here.