What La-Z-Boy Inc. told the SEC could break it.

La-Z-Boy's upholstered-furniture cost base depends on petrochemical foam, fabric and leather: it buys polyurethane foam from only three suppliers and most polyester batting domestically, and purchases 'cover' (about two-thirds in a raw state — fabric rolls or leather hides) from a limited number of major suppliers in multiple countries including China, the U.S., Vietnam and Brazil. This combines commodity-price exposure (petrochemical foam, leather, fabric) with supplier concentration — a disruption or price spike at one of the three foam suppliers or a major cover supplier would raise costs or interrupt production. A combined commodity-input and limited-supplier dependence.

“We purchase cover from a variety of sources, but we rely on a limited number of major suppliers.”

La-Z-Boy manufactures in the U.S., Mexico and the U.K., participates in a Thailand JV, and imports components, raw materials and finished goods from China, Vietnam and others — exposing it to trade policy. The U.S. has enacted tariffs on many items sourced from China (furniture, accessories, parts and raw materials it uses in domestic operations), and the vast majority of its imported casegoods are sourced directly from Vietnam; ~90% of North American upholstered units are U.S.-made with the remainder from Mexico under USMCA. It warns it may be unable to fully mitigate tariffs, pass on price increases, or secure alternative sources, and expects higher fiscal-2026 product costs from trade-policy/tariff uncertainty. A specific, multi-country tariff/trade-policy exposure on a furniture supply chain.

“The United States has enacted certain tariffs on many items sourced from China, including certain furniture, accessories, furniture parts, and raw materials that are imported into the United States and that we use in our domestic operations.”