La-Z-Boy closes 2 core case goods lines, UK-based upholstery
Editors note: An earlier version of this article incorrectly stated that the closure of the two case goods lines was confirmed. It has been updated to clarify that La-Z-Boy is exploring alternatives for its non-core Kincaid and American Drew case goods businesses and Kincaid upholstery. It also now reflects that the U.K. facility closure is a proposal under consultation and further clarifies that the potential sales and margin impacts arise from the company’s overall set of strategic initiatives.
MONROE, Mich. — La-Z-Boy has announced that it is exploring options for exiting two non-core case goods lines, and it has begun a consultation process regarding the proposed closure of a U.K. manufacturing facility, steps the company says align with its long-term strategy and ongoing portfolio optimization efforts.
The company stressed that during this process, operations and production will continue as normal and no final decision has been made. The planned strategic moves will impact its Kincaid and American Drew case goods and Kincaid upholstery lines.
In its second quarter 2026 earnings report, CEO Melinda D. Whittington explained the move in terms of the company’s long-term outlook and optimization.
See also:
“We are proactively taking steps to optimize our portfolio,” Whittington said. “We have announced plans to exit our non-core wholesale case goods and upholstery businesses in the back half of the fiscal year, announced the proposed closure of our U.K. manufacturing facility, and strategically realigned our commercial leadership and corporate staffing to enhance operating efficiency.”
As the company evaluates alternatives for the selected business segments, Whittington explained that La-Z-Boy will continue to leverage a strong domestic manufacturing footprint as it navigates tariff headwinds.
“On top of this, leveraging our North American manufacturing base with ~90% of finished goods produced in the U.S., we are successfully navigating the current trade and tariff volatility. Our iconic brand, well-positioned manufacturing base, strong balance sheet and talented team provide the foundation for continued growth and margin expansion.”
The combined set of strategic initiatives—including the 15-store retail acquisition completed earlier in the third quarter —are projected to reduce sales by approximately $30 million, net, and increase margins by 75 to 100 basis points once fully implemented.
