- Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the La-Z-Boy Fiscal 2023 Second Quarter Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Kathy Liebmann, Director of Investor Relations and Corporate Communications. Ma’am, the floor is yours.

Kathy Liebmann

Thank you, Hollie. you quarter us results. thank fiscal discuss and second XXXX morning, for to joining our Good CFO. With La-Z-Boy’s Executive Lucian, President this and us morning Chief Officer; are and Melinda Whittington, Bob and Melinda Bob and will financials through. midway close open the the will to segment and speak performance call, open to then questions. We’ll the call week Slides available view of this year, through and beginning telephone presentation replay our for available webcast may this will be one you link, call for be will the one accompany and them which will afternoon. a

Before I’d that we forward-looking to some performance like statements La-Z-Boy’s include and about the call begin presentation, remind other matters. made you in statements future today’s

available non-GAAP call under future and to detailed earnings on I’ll of of at conference those Events differ reconciliations end Investor With we most the deck. Melinda? the other also that includes it our La-Z-Boy’s risk encourage significant XX-K. these on statements actual our in certain page key as information our factors We SEC the review release tab of Also, and materially. now Whittington, Chief which is are as annual Relations turn President an website, are our our our be included results Although, to Form you described appendix report The factors the could results to our risk well filings. that, believe affect in as over reasonable, call slide could measures News and Melinda Executive Officer.

Melinda Whittington

the the fiscal second we excellent and Thanks, ‘XX company. close afternoon, everyone. for of results good Kathy, market, following morning, Yesterday quarter reported total

chain These retail particularly and results a customers retail reduce us enabled with again QX, enabled service for to non-GAAP record record supply sales sales, improve all-time business. turned margin. in profits our consumers, for our strong our consolidated backlog were in period record company profits and to performance results for addition operating execution the delivered and quarterly stellar our to and by segment owned setting In and

our marketplace, improve lead A proposition our all custom times to commercial customers on the Our Delivering great value in for furniture is continue competitive footprint. our to to weeks. us us, good and are four good manufacturing for differentiator in this for supported by and edging brand American North consumers. promise, closer for our we six

headwinds While we're slow term the pleased and with industry, the trajectory will adjustments ongoing agility. we near continue environment across written delivered in know this quarter, increased our results and challenging our require to

pre-pandemic pace traffic quarter. these shift up a still factors business geopolitical spending experiencing versus e-commerce While versus as sentiment, of reflection again patterns the post-pandemic written macroeconomic discretionary of in slower levels, on last industry our year. in uncertainty as store and A our well and a is consumer impacted weighing and concerns

down our for have written XX% versus XX% trends. pre-pandemic, the Since second sales ROI written QX execution total the last business up retail partner, same-store with period, were With which fiscal reflecting the sales a since last up reversed. and as were been reversal, down with as results we quarter, starting year's are For these see key meaningful X% well marketing versus QX, successfully. QX in XXXX the we effects similar trends this versus move quarter, owned network company positioning period what focused up XX%, the also fiscal year's rest line up full are results but second trending down Joybird Galleries against and more strong trends experienced against quarter. same-store with positively written X% down was with pre-pandemic and to Furniture sales La-Z-Boy the in year-over-year against second changes of improvements written written company on results total same-store year's long-term draw the XX%. XXXX consumer through to industry, similar the In in difficult XX% early XX% but and furniture of The it XXXX too fiscal entire we to written last the this controlling is environment, can campaign comped conclusions.

agility strategies chain and go-to-market entire driving the our enterprise spend as across marketing capital we are operations timelines. We adjust supply project and optimize

Century environment, quality and we growth, As structure comfort. La-Z-Boy brand drive leveraging drive with and the its cost profitable our align proactively making growth share remain to in long-term investing the are prudent equity, reputation we history demand for committed to we investments To and through Vision.

using core provide product strategies we true La-Z-Boy selective store, in traffic stores, and high, introductions expand was and consumer consumer-centric were improving channel end-to-end products shop for channel market are across to executing are digital to the opportunities. Point new developing distribution to to with to drive we new consumers and Galleries promotions that customer pleased the At innovation, our customers the experience, with preferring remodeled on on in all footprint consumer key with an Furniture recent are our thrilled new the extraordinary We strategies feedback and Further, were and brand omni strengthen La-Z-Boy and brands report throughout energy long to High insights term. and stores Furniture expanding engaged investing positive Market, to drive technology with experience. to

another an own closed And on and in store an the Washington, September, within have relocate stores new Spokane, store we Galleries In dealer center in of another of acquisition these five two from Virginia. Galleries to alone, open we are signed and relocated La-Z-Boy seven remodeled independent across West QX distribution remodel network. business. one and working recently XX and opened we our in or Furniture our During retail ‘XX, agreement or new fiscal stores acquire to Furniture

store to demand. are our manufacturing facilities supply pre-pandemic with levels immediately accretive benefit lead and the times, backlog from retail integrated reduce margin. to these staffing company are we the wholesale acquisitions align back chain, always, allow across As we optimizing the as to Throughout current our

terms service within driving book, improved that efficiency our continue plans production to are changes in provide of on our the marketing business restructuring spend. us to to and campaigns the order channels ability consumer series and advertising returns Joybird, environment, the a invest this we execution. messaging made we've acquisition. with brand Additionally, better At flex of improve in we and to advertising to awareness drive In

stores, high Joybird also We markets to traffic in are results. opening where urban retail great in investing we continue experience

store combined stores of We showrooms the XX our optimized to-date. retail and web brand. the Seattle, with strong our true provide and calendar, in stores in with Los a first mobile bringing new with Philadelphia November Our a omnichannel the to Angeles we'll Joybird consumers Joybird open half engage experience to three opened Manhattan total platform

include Joybird locations, will align retail the business term additional with long our overall openings we of pace While environment. store plans the

online differentiator Importantly, vertical investing in the brand. retailer are makes for upholstered that product. positioned This as that uniquely we a provides key an our to integration us with own Joybird margin keep is opportunity

Joybird Vision La-Z-Boy some to optimize the will on we complexion long of change term While the time, near bullish we Incorporated. challenges the of have Over business, term. execution remain Century the

this margin enhancement and we brand business. rate from financial Over of years, and as we to traditional we three be will as strength. the and to contribute faster Joybird retail operating our grow. at next over a expect a four as grow This starting our to half company businesses wholesale shift tackle are ahead, what position we than consolidated is immediately direct-to-consumer owned And

pandemic a pre on then deliver to La-Z-Boy than larger remains their comfort homes levels, the them. value Incorporated it as trust of business consumers to for place continue and Our

We are confident we the build will environment even emerge for well, stronger. navigate the future and

quarter our over the turn Bob call me second Bob? review to let results to more detail. Now in

Bob Lucian

you, morning, Thank everyone. and Melinda, good

to for a year's GAAP Consolidated XX% income increase items $X.XX X.X% from to $XX tables to in second offsetting Non-GAAP X% income slides. increased section believe in increased operating increased year's As EPS operating a surcharge increased consolidated versus We mix, release of a reminder, and the positive quarter. million versus $X.X in channel quarter, press both were fiscal increased last detailed performance year's $XXX to product non-GAAP and on the current basis, the quarter an operating the we GAAP lower second quarter. exclude last non-GAAP XXXX operating XX.X% and results EPS margin last results of Non-GAAP Consolidated effects sales reflects presentation and ‘XX year in trends the and business. of second and fiscal which in and prior diluted unit to to the $X.XX our XX% million GAAP better appendix present non-GAAP record volume. the with quarter. million, second our margin quarter GAAP in conference the and basis. of pricing for XX% a to increased versus year call underlying second operating $X.X quarter a and actions diluted versus quarter. second the X% $XX On year prior non-GAAP increased quarter from in

diluted was profit business. retail as months, EPS $X.XX, delivered XX versus servicing second our XX% we Over chain towards disproportionate the a In the period. we shifted year ago growth supply quarter, capacity the non-GAAP increase

our of margin once of limited dealer of again quarter. company to consumers to retail of drive their take short-term us business. we own selling during we benefits and our many deliveries increase that customers delivery and leverage through ability backlog operating constraints These allowed pivot discussed, As service constraints the the had have quarter, retail improved strong as owned the our wholesale to new warehouse during product

million, move discussion, focus my lead returning delivered make specifically the an our segment to will Starting segment, on consumers XX% by Retail times. to comments to record I and $XXX with stated non-GAAP improve here As our increased otherwise. our unless service reporting progress from to all-time towards pre-pandemic we as sales

operating a sales dollars a higher were posted sales and XX.X% to margin to driven delivered expenses quarter, primarily XX.X% operating year fixed the same-store and These costs. non-GAAP results Retail versus by For average in delivery versus quarter. record the ago. high selling prior non-GAAP year increased best XX% profit relative increased

congratulate Our continues an incomparable we to retail consumer focus provide experience them and their on outstanding performance. team's

noted us and Melinda as element a is Galleries direct-to-consumer be will full owned expansion the our operating with we Furniture shift network sales driver Century key serve as process. Disproportionately a to more in provide allow and central mix retail more growing brand growing company As consolidated consumers to Vision. earlier, driving margin a the business experience end-to-end of La-Z-Boy our will

a year grew to due X% driven favorable levels. inefficiencies pricing more sales unit delivered coupled segment prior an for the The spend surcharge decreased growth sales by $XX second the were compared partner, and with wholesale plant $XXX spend million, on changes lower X% prior actions key a actions the For quarter, a period been improvement and offset channel and campaign quarter. and a primarily in material by second Wholesale a receipt to our million increased raw Joybird’s XX% quarter. marketing I'll record in to product last with pre-COVID were Pricing effects and delivered increase the which was period, trends to goods with offset comparable have corporate up is delaying primarily X.X% and year operating volume, reversed. result e-commerce of volume due the written was reflecting Joybird, dealers than in which execution margin now of was second other. finished constraints. the moments and slowing for versus costs, year's the increase reported of few since of against to surcharge and quarter marketing sales Non-GAAP warehouse versus partially segment The mix. lower by X.X% in a

the while to advertising volume improve better resonate mix spend. messages our with for As and for team making -- lower unfavorable current a and marketing, product tailoring Joybird media focus performance reflecting we lower with environment, in mix is quarter primarily return beginning the our a building platform on to a improvement. a a in result, To on see to consumer period, post-COVID awareness brand social changes posted are and and loss shift the

consumer We optimizing Joybird all cost marketing areas spend of are navigate in business this and post-COVID as we the market. also e-commerce

growth. the fiscal and marketing reflecting investments locations Joybird long-term continued to to retail headwinds impact and For full year, the prudent of loss external expect and we post a now drive

profitability. the making line and bottom with investments are several balance business for growth areas and business to model in all across the quarters improvements it will it We to of will return take expect performance

full reflected price, basis by and driven was offset carries to XXX business retail sequentially increased larger than period, costs. combination of surcharge the and versus non-GAAP by sales in by of material drive percentage consolidated consolidated quarter sales higher second expense growth driven increased margin primarily XXX was performance. retail, to ago margin written year our QX, pricing the XXX gross to raw versus versus better to plant mix in our a restoring percentage last a SG&A as partially points a year actions, pre-COVID higher primarily as business. SG&A The quarter. and our prior While SG&A the the level for the points of well wholesale and than percentage change points a gross improvement plant mix with and portion a as marketing enterprise due which higher year's primarily increased of investments driven as becoming of gross from favorable also by mix business Again, sales. of carrying our changes levels business as Consolidated non-GAAP margin the higher basis sales this wholesale consolidated basis a

versus in XX.X% a rate tax for basis on second was effective the Our ’XX quarter year's last quarter. fiscal GAAP XX.X% second

varies state rate tax effective statutory federal due XX% rate, taxes. primarily to from Our

expect XX.X% to range in for XXXX. effective continue to to rate of fiscal We the tax XX.X% our be

Turning from in a million decrease to $XX month the XXXX second in backlog. activities primarily customer quarter reduced versus period. the due operating million generated operating as our year-to-date in retail was negative cash, we in six cash cash deposits The generation we to fiscal slightly $XX

addition, components to goods increased me, of reflecting slightly the consumers, timing finished certain our customers. inventory the excuse flow case the of and goods In receipt of and

enhance Directors plans $XX cash. term to the primarily the million returns related inventory have down the We period year. we to short We investments capital in no and proactively debt on in with million held and to $XX have work first in $XX back $XXX end spent La-Z-Boy confidence Year-to-date, in of the cash million in half place ended stores long company's million we prospects, quarterly the manufacturing projects dividends. quarter Furniture retail new its shareholders XX%. the Board Galleries half, dividend Subsequent at and demonstrating and to upgrades as regular store growth as increased well to of facilities. term returned through our by distribution in In

environment, repurchases maintaining in we a and Given investment to the balance to macroeconomic than paused dilution offset uncertain other business capital share have enable prudent strong temporarily the sheet.

have We program. million authorized existing in left our repurchase shares X.X share

the and allocation roughly into via over cash repurchases. and remainder term flow share capital of back to strategy business long operating to M&A half the CapEx dividends the is invest return shareholders via Our and

as economic towards and manage the near-term, For that investment internal uncertain mix strengthen through we skew our will business environment capabilities. an

to for against just full will week fiscal several back items and extra week XX will 'XX. ‘XX quarter the year keep and call fiscal Please shutdowns quarter in third third in fell Melinda, weeks our the XX the highlight of turning mind versus fiscal the over production be to period. fourth quarter will Before let fiscal quarter in holiday year. me The The include important completed due XX that the XX ‘XX be comparisons a year. week last

with at levels to during and to levels begin expect pre-pandemic our sales backlog will consistent and delivering consistent with our down historical the we we such what seasonality. as quarter We work third write

have external driven who QX they to larger back term the growth, a accordingly. well to as half customers impact will and delivery have margin segment While steady compare we adjust QX. this due to in number and unfavorably our of Wholesale last expect of as manage throughout and product to still in delayed will customers our for expect wholesale inventories written results sales demand on constraints demand for We in sales warehouse fluctuating sales weigh their the our headwinds our continue we direct-to-consumer long consumer as receiving year, Against businesses year. maintain COVID we commitment

during delays QX. these to normalize expect We

part levels end the fiscal inventory begin anniversary start that system this in comps sales improve combination in through of return to and the pre-pandemic channel first written will 'XX, back written half of by written to comps distribution on calendar shift will pre-pandemic levels to began half early of expect the fiscal. The we QX. the as mix However, back the we working of 'XX, we of backlog our slowdown in to relative to

brand equity continue long to marketing period. traffic, to challenging will this during drive We and term invest demand in

we quarter a operating of $XXX non-GAAP in than As expected expect million of the a sales result, $XXX million pre-pandemic about versus be to the of levels 'XX, similar fiscal and X% to for fiscal range quarter. quarter range third higher about margin but third a The the ‘XX down is be to delivered X.X%. consolidated to quarter to in fourth

in changes to purchase of to accounting expect adjustments year $X.XX We be the range for $X.XX share. for non-GAAP charges per the --

timelines million. expenditures 'XX $XX Given the capital of $XX be million in extended the expect have fiscal now we demand range for project capital to environment, and to

We to turn And now, our call will for company the Century the to strengthen Vision Melinda. prudent will investments future, with continue consistent to make back I strategy. the

Melinda Whittington

Bob. of realistic will extremely future our the be while Incorporated, Thanks, near environment about the optimistic about and being La-Z-Boy I'm industry. it economic term challenging for that

long prudent this to have of We strength manage and financial us a the history cash conscious period. through earning being

comfort drive the marketing drive our term will keeping to on in opportunities Century in brands more even and other this We and on travel our which with in to And long growth and experiences, discretionary consumer focus for their homes. and build believe environment. underlying dollars investing provide our and consumers future. capabilities are that are bolster the term, spending investments We continue we in our growth. will to to they messages longer innovations prioritize honing Vision making insights selective proactive even disproportionate

custom, yet results and you I'll back and thank excellent now I navigate delivering our again call furniture for it the and confident to dedication and work Kathy. consumers customers turn being on hard in this morning, to for future. their for thank this our fast team we quarter. amazing I'd are next will to and whatever for and our continue We like our quality challenges come deliver

Kathy Liebmann

Thanks, Melinda.

We Hollie, to please period will the you into begin review question-and-answer to the ask the questions. will instructions now. queue get

Operator

now [Operator first Your Certainly. Ladies floor and at question for is James. Raymond for Instructions] Bobby gentlemen, Griffin today the questions. open coming from is

Bobby Griffin

morning, Good taking everybody. questions. for my Thanks

Melinda Whittington

morning. Good

Bob Lucian

Good morning, Bobby.

Bobby Griffin

calendar a and through wide wholesale about some guess this I maybe bit and question hearing excess commentary first help of of work have you situation trying High think a question more of industry of of that is type you of just But it inventory to might customers. channel, when sense kind what us to little a get position? to inventory of couple of anything I on when XXXX are the we of kind in any XXXX Industry the Level hearing your into range or kind quarters timeline more back the year their normal on you're get inventory from

Melinda Whittington

put Yeah, of of probably the up freed some containers It of long that products, balanced books it manufacturing more finally sources catch all that it on are It suffering varies, in Bobby. that by towards Asian right. us their are they customer, showed heavily orders and and the their for most in obviously that a time varies up by ago up. varies those mix

to we're that stock And movement. intentionally custom and our to type if to retail, to getting stock opposed it’s that of see about to move lot is, What saying we're pre-pandemic. three still but What we're custom. in down inventory we're lead is where that back our kind through talking the here, ones is I’m progress of close a orders, for are honest do as up come and general months, tell been seeing seeing we've months certainly bringing that we're to folks So times perpetually four for levels for you were a they and up within backed four sitting I on can that we dealer three we hear able bit. own tend

as have delivered So and be come have and to not in if does back it up the to term. own our to able want buy in custom, well. but We're near to getting in warehouses it levels support delivered consumer that something the

Bobby Griffin

a And guess, week bit little up, I steps per implied Okay. from and quarter down Bob, at I production look sales appreciate it third it. then, here That's when XQ. helpful. of the I coming

third week that think Is else try is of down? think $XX the did just production I deliver about function to drop for that still you sales you of talking production, the delivered I the that a mention aspect inventory quarter. Because to the weekly bit in still to just million a backlog $XX in million. have weekly good to something guys would renewals the there or cause

Bob Lucian

a backlog It's during of function will the that the third quarter fact that gone. be

were we at able quarter you week all backlog drive to a So the during just that to use mentioned. $XX sales those entire million QX, throughout

away average the up that the going during to down. and up week QX, going end that's per quarters During is will going why end

Bobby Griffin

where inside then out forward in and to to through the the new Okay. going kind take further, for step we a plants that given that worked That side, the And on demand a look makes sense. are we've of environment stuff flexibility going demand now of backlog? this

Melinda Whittington

as really several few in the actually off working go levels then right? our So shift. because time. because seeing backed us folks time. last and through mainly as backed is off We actually talked manual, we're working time. so ways up, appreciate people slowly over than people stuck like we that we it's So doing like years that. we we're And our as and now of overtime. that manufacturing work over as And flexing many had about fact a to -- We We're efficiencies back up off not had hard we've and the working backed of we're they people are places just amounts is quite flexing second had while a in with that in and product that easier hours inherently people reasonable down the have we've significant

happen how downsized. go. fairly we're just are we've particularly is environments, that to-date main have attrition naturally still that amount Those the and letting of and other drivers those natural we're as advantage The we meaningful manufacturing downsize on attrition ours, taking happens really of thing a sort to like of

Bobby Griffin

for back the the answering jump queue, again I thanks but in questions this appreciate my Okay. I'll morning. details.

Melinda Whittington

Bobby. Thanks,

Operator

Lebiedzinski at and is Anthony Your next coming question Sidoti Company. from

Anthony Lebiedzinski

Good morning, thank and questions. the for you taking

in coming returning to before So stores to think talked -- when you just and just curious buying more terms the sales Friday. you guys is you what traffic Can first, about Black I the furniture of for industry written your -- saw people just off of that around comment in holidays. as about the overall

So just curious input to to over Friday? as Black get saw your you what

Melinda Whittington

morning, some comparisons Anthony. saying, galleries, you like start Good improvement our in saw year-on-year pace we QX Yeah. I'd by seeing in QX. actually if at furniture look for versus what we were

and So a more that -- that's trend. months, over a little of that's three

continued thus doing. on of seen that general, of to November far consumer Cyber holiday, Friday call we're and pace far and the for a over saw the of We year-on-year, our As improvement. we've last in strengthening which trajectory pulse what generally where (ph) to furniture right? Joybird, actually as too early real consumers galleries our this a have But some in sort right, last is with Monday, we both businesses trend, performance are in pleased

Anthony Lebiedzinski

it. Got

hear. Okay. That's firm orders of should be canceled? that? terms those is good finished that then in to receipt of there mostly potential goods those delaying we of constraints, because orders maybe or the could And some view are How warehouse risk of dealers

Melinda Whittington

goods Mostly well product of in, about some of think a be that's that our where timing we're if of get the case things with out finished firm we're pace our importing orders, manufacturing manufacturing the clear, driver to as on and where customers we're in take. all, some communicating some those to door you and sits they'll just the that's as slowing the cases

Anthony Lebiedzinski

Got it.

given that you'll do to perhaps be terms And levers, think of current increased or demand using the environment? demand Okay. advertising in main then need you're is promotional you more tool the the

Bob Lucian

up able stores do we in The store, them doing for end with And great them job get the sales. likely upselling both. the a retail converting to them piece important design in is and drive we're We'll traffic. marketing to once

out somebody and crazy promotion the warehouses. -- moving product waiting looking, get we a we're go or to of very we're off start for there their haven't On some we're out seen doing floors their watching, large things side,

We haven't seen on keeping that. our We'll eye yet. that be

leave but to that also We don't we we amounts sure discounts, want continue maintain share. we to of to say want down crazy make

competition So the competitive move our the we -- in that what with happens period consumer through we holiday remain see as is the Day and ensure going. will into with President with and the we we economy, what

Anthony Lebiedzinski

think Got if it. should should profitability takes think and you we how us term, lastly, to and then long segment just that? near about term we how could as puts And about give different

Bob Lucian

of made We number a comments.

We comments. continue number make to a of

four because to more fixed higher business be have cost as years, we and part more kind Vision, really that and as biggest XX% The some -- network. shrinking, to getting back go we we years. Vision two going it XX% flip of And growth, to growing wholesale brand. It’s three business to as stores coupled close direct-to-consumer, formats it's that reinvigorate were is La-Z-Boy of going rate. we proportionately new expect goal of have. stores, more if remodeling the for that's other of direct-to-consumer Our a XX Century we're wholesale. is margins, to -- high kind call be next XX% will gross the accelerated at over part three be higher our flop as low that That get with over business that And higher formats prior where wholesale part to or direct-to-consumer -- profits of not of we that and that's the our just just high-XX%’s that's leverage. growing well that's to La-Z-Boy retail XX% And Joybird we a expect that Century an you the new

how time. into more that that So double-digit key consistent will our over drive be a margin on basis of we operating range part a

Anthony Lebiedzinski

and Got much luck. very Thank of it. you best

Melinda Whittington

Thanks, Anthony.

Operator

Thomas KeyBanc. from Your next Brad today question coming is at for

Brad Thomas

underlying about economics I Good business? a bit of And like Hi. hoping little your underlying taking a think any sort for enthusiasm a I one-time could much more how putting in morning. of about aside the was out you your little dynamics term? you about more could look my for business are kind unit little some to bit as marketing you bit what little question. more issues? affecting the talk of talk talk looking we for and a enthusiasm if Thanks if sales, wondering, maybe bit the longer Thanks. Joybird was are

Melinda Whittington

Yeah. Good Brad. morning,

things So Joybird, are happening. two

working just as technical, we'll very well matter Joybird quarter, you're out that traffic involves I through. that over see we more In industry, to it's execution, broadly the one-time more we're you bullish think as you've So that the to, algorithms modeling some growth I more just our there it's of as consumer some brand And had we're right there's right you forth. like broader starting the to move had and you more of, now artificial that intelligence what look still on think if automated take and really we can the pacing right? alluded e-com, this years, that think done to solutions, affected a perform so sort we marketing across a site. coming look furniture still mix and And our effect about and do. way we over to

a certainly my too in that in we're so little again, of like out. prepared to businesses. said, -- said early as think that going more So rest but bit expect do type brick-and-mortar that that's industry, I look been too movement of more And early, our I like is claim reversed. improvement back victory, to complete probably consumer is I the the going the But the comments, growth as to seeing we

optimize need execution. us execution, brand. it an sort says, type is, business costs takes So structure for also to and takes great prepare one, we that what of out of to that it a the for says And it

of rounded all with So of we feel with brand, resonates that the still very great kind out, about still well consumers. it

Our stores are well. doing

really have our As we're continue to pace across our to by on here quarter messaging consumer post-pandemic looks be enticing this we're honing as we'll brand that open up done summer. sure brands like I to And summer but rest may to we of stores on with just XX some invest bit, that a of even to noted, the identified, we're by resonating. we're going that XX XX fresh messaging the the doing to going manage over this path we've we the have and be last make

of long thrilled about we'll in the near the the our work about way still term, feel term, we but some not challenges So good through that.

Brad Thomas

months kind of curious helpful, six if here? to still weekends. a and getting a Melinda. promotions of And It's like ask checks. promotions store disciplined like more goes obviously state the only be I'd and do our items. one feels not promotions trying closer might blanket your out to on be stay sending promotions discounts really and to over do always that we're about But the industry. as over more That's by, the could you and it of kind that number use what I a the out much seeing XX holiday medium selling It of every follow-up just of brands has you're kind risk feels there some doing how month in wide, promotions next think we there more that

Bob Lucian

Brad. Yeah,

but we way to started, kind you Day, -- that promotions all of so that's see because period you over finally, Columbus the Presidents' of increase Presidents' Black and think Labor continue see the is And some Labor the the everybody a Day you As from to see going Day, Year's. through year of one biggest lot over is Day. then be for more in Friday, you New

et doing that cetera. activity -- keeping they're promotional delivering that we're get they margins people increased the sold again off, trying into priced on unexpected. problems, can off So marketplace. we're few hit eye an those that non-promotion Generally getting the folks and just are where types they're not cash from -- of that What to basis and items to so generate XX% XX% if is inventory promotions a in XX% a if inventory, trying do XX% their rid off, are things into that's very way, desperate off running seek cash or is flow speaking, they're on to like running of

will that what that our to and our are do eye Again, planning there sure we our as that what's we promotions year that's making putting understand we we So working continue stay happening ensure that, have to sales of are we with at the the out half for look competitive. are we on. out force we back

Melinda Whittington

from seeing sort that relief costs somewhat mitigating add freight. not we're just would while I beyond dramatic they're for ocean input overall, all-time highs, of containers

And tend there's Asian so more where kind import you of bit room and to deceleration. products see cost a those little a more

on going believe the deserves is price it's quality range, no they're keep much within right be a our and the how keep a got little of the the of looking to but our we're thumb consumers consumer But that very for. acting said, bit also certainly -- we pulse what what to premium, -- Bob doubt. As

Brad Thomas

you Thank so helpful. much. Really all

Melinda Whittington

Thanks, Brad.

Operator

further in like floor turn back no to be queue. the team to would over closing questions management I comments. to for appear the There any

Kathy Liebmann

your Incorporated. for great today Have you interest for and time La-Z-Boy everyone a you thank your day. Thank in

Operator

call. Thank This gentlemen. and you, conclude ladies conference does today's

lines wonderful participation. at your this may time Thank a you disconnect phone day. You your and have for

La-Z-Boy (LZB) 1 Dec 222023 Q2 Earnings call transcript