v3.26.1
Revenue Recognition
 3 Months Ended
Jul. 25, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 10: 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 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration.

The following table presents our revenue disaggregated by product category and by segment or unit:

Quarter Ended July 25, 2026Quarter Ended July 26, 2025
(Unaudited, amounts in thousands)WholesaleRetailCorporate
and Other		TotalWholesaleRetailCorporate
and Other		Total
Upholstered Furniture$265,883 $183,782 $22,087 $471,752 $272,356 $170,867 $23,361 $466,584 
Casegoods/Accessories13,505 18,607 2,152 34,264 21,688 16,091 1,949 39,728 
Delivery38,080 8,019 1,723 47,822 37,347 7,503 1,896 46,746 
Other (1)
5,478 18,147 4,063 27,688 21,566 12,689 4,029 38,284 
Total$322,946 $228,555 $30,025 $581,526 $352,957 $207,150 $31,235 $591,342 
Eliminations(105,837)(99,113)
Consolidated Net Sales$475,689 $492,229 
(1)Primarily includes after-treatment product, royalties, parts, 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. Fiscal 2026 includes the upholstery portion of our Casegoods business that was divested on January 30, 2026.
Casegoods/Accessories - Includes revenue for occasional tables typically found in a living room, dining and bedroom furniture, and other accessories such as lamps, rugs, and other decor found throughout the home. This revenue includes sales to La-Z-Boy Stores (including company-owned stores), independent retailers, and the end consumer. Includes the Casegoods wholesale business that was divested on May 29, 2026.

Contract Assets and Liabilities. We receive customer deposits from end consumers before we recognize revenue and in some cases we have the unconditional right to collect the remaining portion of the order price before we fulfill our performance obligation, resulting in a contract asset and a corresponding deferred revenue liability. In our consolidated balance sheet, customer deposits and deferred revenue (collectively, the "contract liabilities") are reported in accrued expenses and other current liabilities while contract assets are reported as other current assets.
The following table presents our contract assets and liabilities:

(Unaudited, amounts in thousands)7/25/20264/25/2026
Contract assets $43,351 $34,907 
Customer deposits$91,989 $77,907 
Deferred revenue43,351 34,907 
Total contract liabilities (1)
$135,340 $112,814 
(1)During the quarter ended July 25, 2026, we recognized revenue of $100.6 million related to our contract liability balance at April 25, 2026.