Earnings call transcript Q4 2023

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Operator

Greetings. Welcome to the La-Z-Boy Fiscal 2023 Fourth Quarter Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

the Officer to of turn Lucian, host, now Financial Chief La-Z-Boy will conference your over Bob I Incorporated. Mr. Lucian, you may begin.

Bob Lucian

Good discuss fourth Thank joining Holly. morning thank and you, you us to and our quarter XXXX fiscal full-year results. everyone for

to and I Mark recently Corporate as Development. get La-Z-Boy moment Director new who a like we to take Before of joined our started, introduce Becks, Investor Relations

investment background banking this in Many Mark. global can consumer know in diverse [hardline] will his and information [ph] call private on and yesterday's and given retail advising public contact Welcome, brands. research retail him, press Mark's release. found be

Mark Becks

you, Thank morning, a is pleasure It to Bob. with Good be you. everyone.

Officer. me Joining financials close is call and Whittington, will Melinda the on call morning and Executive to through. this the will the in Bob segment performance Bob open La-Z-Boy’s and Melinda speak midway Chief President and

will questions. We call to open then the

and webcast and be view for accompany may them this this will one telephone week replay our a for presentation available will of the beginning through be Slides call will available you one which afternoon. link, year,

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

annual our risk reasonable, review information key SEC on Although that to most our well could significant are Form in believe could results you our risk XX-K. as encourage those affect statements we report filings. to differ as these in detailed be described factors results We actual materially. The factors our other future

which also slide our end website certain Investor at appendix under on and included Relations our as the of deck. of Also, News are our an measures, and the available of call earnings includes non-GAAP reconciliations conference tab release page is the Events

Whittington, and La-Z-Boy's With call that, Executive to Melinda? will the Chief President Officer. now Melinda over turn I

Melinda Whittington

second consecutive you we for Mark, market, close I'm year and of results. volatility. record economic the walk a us during we results share have excited our that to fiscal everyone. record good morning, to reported joining continued Thanks, fourth delivered and industry for following XXXX. Thank through quarter Yesterday, of results

margin included: also fiscal strong operating for to margin, for retail our were and for lead operating operating Highlights and a a for times sales million; segment; the essentially consolidated growth delivery activities earnings flow cash over Vision company-owned pre-COVID record share record from progress continued operating year; generated fiscal levels, improved delivered delivered sales XX-week of and the our Century year per year; profits back strategy. profits, record against $XXX

point of $X.X all-time led macro basis against proud performance results of after earnings week. full-year Sales XX% year, Strong XXXX. improvement XXrd of XXX line share to a XX% challenging our last and drove a backdrop. X% XXXX. ahead in top were per non-GAAP versus operating Improvements profitability non-GAAP record fiscal than adjusting X.X%, an of we’re last year All-in, billion, more $X.XX, for up fiscal year's margin pre-pandemic

again. back in key Custom our speed collectively our marketplace. market, lead enabling Importantly, once brand chain consumers to our customers to times pre-pandemic our furniture delivery a team supply reduced has and fragmented differentiator promise experience levels, with to

are enterprise. built success and hard leadership company. continued of talented bench XXXX the developing perseverance testament our in year the the and across dedicated teams we have a The team across achieved is work to the and proud fiscal the I'm we of

be the been assets of continue greatest and and key to amazing our results. have among drivers employees these Our we're

gallery store four fourth segment X% acquisitions. over fourth improved higher design retail a sales, CAGR written result sales higher for quarter, the deeper a on those year's openings, an increase up last pricing, new X% XX% conversion, were quarter. Going versus versus and reflects Total as XXXX independent furniture of bit This our of trends. years a pre-pandemic

in written retail segment Positive offset the about spending patterns. in negative for versus April impacted Same-store flat comps crisis consumer quarter in were as our February by were and year. the comps March fourth prior banking sales temporarily

up restoring and company-owned brand retail La-Z-Boy strong in marketing and to lead commitment enabled Our over the written deliver half X.X% our levels four the represents execution pre-pandemic same-store strong last driven the support pandemic second in-store against improving strengthening year. base period. of year which segment negative same-store versus This the in of positive of significant growth the five to XX% months times half fiscal sales to of first comparison prior the fiscal sales a year, versus was a

as industry, which growing the retail favorably of furniture importantly, compare X.X% decline a to More share is same the our overall period. saw our results half second furnishings business and over

to gain the of continuously market in conditions. market Our objective existing share regardless fragmented this same remains

We approach our our in are of team, industry marketing, strength our the to value leveraging leading and drive the and of sheet balance consumers. our continuous improvements discipline for

differentiator. true unlocking Our advantages growth. is chain are supply and for vertical runway long-term These retail network growing a is competitive a our

Fourth entire quarter, up period, quarter prior period. that over the La-Z-Boy Network, CAGR the a independently-owned but fiscal Galleries X% pre-pandemic versus were sales including galleries same-store against the X% Furniture written for XX% year down XXXX fourth

similar Joybird. to Written many online the of compounded ago, to retailers, by those challenging year were Turning down impact reflecting for versus consumer sales XX% quarter furniture experienced fourth the crisis. a banking the trends across

the our from given focus performance spend to this environment, balanced of profitability. decisive marketing resulted overall demand softer our action on reduce Some reflecting

by month, anticipate comparable progressed. fiscal of fourth early summer written our slowdown we mid-year Joybird We experienced and XXXX when lap sequentially fall. as the industry-wide online quarter year improved sales inflecting last comps Notably,

long-term remain furniture the investing fiscal and prudently macroeconomic our challenging year industry profitable we a our disruption focused through strengthen to strategic face to and growth capabilities we Vision drive XXXX, in on market the retail and Century environment As pillars.

made last our of year, During Vision objectives. Century the progress number we a against significant

reach retail increasing by expand penetration. La-Z-Boy in opened in continuing La-Z-Boy brand, independent six to retail those to acquired own and segment our two stores Specifically Chicago, formats path Gallery consumers. of Furniture Columbus, value and outlet our opened to Gallery stores new the seeking eight five We stores potential to we Ohio Furniture Illinois our with being test our to

to We completed inform research appeal coming will campaign consumers, the consumer will more we significant for over years broadening modern to this aimed the of be look. product these new potential future products research at new furniture aimed and launched and at the market La-Z-Boy assess develop innovation which marketing test segmentation, results we've a to fall, a which a leveraged consumers looking and of initiated consumer

the levels strengthen also across pre-pandemic company We as normal capabilities seasonality. demand and reverted to foundational has furniture

through inventory. improved reduction resulting in our We a significant of have costs efficiency improved flow operations and in lower cash

significant to supply improve key future back chain business our investments made systems have into for We and capabilities modernize HR growth. and

operation in our for small and total seek count showrooms, brands. align on effectively La-Z-Boy The we grow including Finally, Capitol store leadership to organization Angeles; format consumers. opened as we of And across brand, urban continue recently Seattle. true Joybird, to Downtown, six Furniture Gallery entire portfolio to we the of This ROW Los which units business changes, new XX finally Joybird our our announced brings other omnichannel network, our more the experience a and Hill in with

to grow focus to as to fuel to Improvement be profitability. choices sustainable The the a margin, share, continues profitably which make the the manner. to will return consistent levels business grow will progresses, as gross marketing we brand of significant in year in continue prudent fiscal to opportunity support have

As sheet objectives. leverage and against we foundations begin balance the fiscal we our progress XXXX Vision year built make our XXXX we'll in continued strong to Century

end-to-end Galleries retail La-Z-Boy to on, Specifically, to from enterprise and continuing first, remodels its Furniture structure the cost experience. consumer deliver and stores, the acquired our company-owned an will increase grow fixed margin. leverage we're outstanding more stores wholesale as provide and update our retail business the benefit we This of integrated new stores, focused through size profit to

we stores in open We fiscal gallery expect in available. of will new two furniture nine fiscal first up to Colorado agreement continue when the the independent an complete quarter stores become XXXX. during acquisitions stores We and to year purchase recently to to announced they of year

La-Z-Boy to distribution strategy to in with right and are availability they expand of shop. consumers refining Second, channel our our the we where products order brand prefer the products to meet

La-Z-Boy and with in product well strategy, new markets select Studio this into greater as distribution With as increase achieve expand penetration we Comfort offerings. will space, branded an

Third, message we and consumer broader insights to with resonate to base honing our test channel quality consideration. increase and by brand comfort brand leveraging reach an our La-Z-Boy’s a of are enhanced product and and format via and brand to consumer continuing heritage offerings brand campaign marketing

margins capabilities. regain to finally, And gross to chain and manage brand. to we we're marketing and We improve grow our wholesale Joybird of results in demand and efficiency as and marketing increasing our improving supply to foundational improve strengthening remain agility support margins. the to line margins top sustain for consumer Fourth, the we're continue and volatility improving profitability investment gross committed operating

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

Bob Lucian

Melinda. you, Thank

As and presentation a in exclude are reflects the of GAAP results in operating trends release underlying the conference both our a We business. non-GAAP our performance the items, the appendix we and present believe non-GAAP detailed Non-GAAP and section tables basis. better results on press slides. reminder, which in call of our

XX-weeks that a comparison fiscal year normal note of XXXX whilst please the XX-weeks. business, included includes Finally, XXXX fiscal of

offset quarter, the to consolidated product favorable by sales XXXX year and pricing mix decreased the a basis, partially XX% fiscal reflecting delivered in On versus fourth effects actions. volume, lower surcharge quarter and $XXX of unit million channel prior

delivered fourth to in quarter returned extra reflecting lower sales $XX the the million, unit decreased levels. year’s week quarter, the volume as XX%, prior fourth backlog approximately pre-pandemic Excluding worth

operating operating X.X% versus GAAP operating and quarter year's point EPS $X.XX million, and fourth versus million Consolidated of margin GAAP a basis decreased year. fourth diluted in on $X.XX X.X% for Consolidated last reflecting quarter year XX-week GAAP quarter. sales. fiscal operating a non-GAAP XX% XX was lower income last was the margin decrease income the to $XX a prior $XX XXXX improvement non-GAAP was versus was

Non-GAAP in last a $X.XX current diluted EPS in XX-week versus quarter, year quarter. the year's $X.XX was

reporting the move fourth and adjusted sales comments otherwise. for for the same-store a $XXX quarter. our retail led Starting here discussion, million, sales segment, prior for adjusting the higher the segments year’s quarter delivered to with a prior my specifically A sales As and stated versus increase quarter, extra focus fourth were year’s from the retail's on increase by ago X% I will non-GAAP delivered year a XX% quarter. unless X% the week over record

operating record by our non-GAAP fourth versus higher non-GAAP dollars prior the operating primarily year volume. sales XX.X% for quarter high cost the driven fixed posted Retail leverage on and margin increased delivered quarter, to profit in XX%

our to is Furniture and As element a company-owned forward larger to look we Melinda long-term and retail becoming key the Vision to success. La-Z-Boy noted, an Galleries even Century growing contributor grow our continuing network of segment

sales XX% our delivered pre-pandemic million, decrease For the extra to lower week. after prior versus for year's decrease unit as returned year lower a surcharge $XXX primarily quarter wholesale backlog XX% actions. segment, offset declined for was and The due delivered pricing to last to adjusting partially by and the levels, volume the period,

for X.X% lower wholesale margin improved year's post-pandemic in freight material fourth on volumes. pricing is improvements segment costs, and reflecting continued lower deleveraging operating to cost XXX the unit mix lower basis increased and primarily volume, margin This from actions. due non-GAAP mostly surcharge operational was product QX, on Non-GAAP Sequentially, X.X% quarter. fixed efficiency points operating versus and even last by offset

year XX% marketing is The cautious profitability. spending Other driven unit volume decrease Joybird, Corporate adjusting a decline and balance million, investment lower in XX% work growth year's was we to and quarter, sales recorded reduced lower extra consumer and last of prior week. and reported which versus after by as more the delivered for from $XX

noted, fiscal Joybird sales slowdown. inflect As online we anticipate in the to we've mid-year once lapped written industry-wide XXXX

improvements For add throughout versus of new sales lower XXXX. and are during its momentum SG&A the margin, SG&A other three to three written expected reductions. significantly prior quarter, quarters spending Joybird included marketing the narrowed to to spend, stores the gross due opening loss fiscal the which in quarter,

lower year a income excluding non-GAAP prior the increase results were $XXX $X.X the of XXXX, improved unit at and versus quarter, on sales by full-year effects and partially extra were product versus mix million, XXXX’s was due delivered last XX% record GAAP $XXX volume. to operating income week to fiscal Moving fourth to and billion flat pricing X%, increased surcharge for Consolidated in roughly million, record the and up fiscal operating offset a year. a actions, sales

XXXX. fiscal X% margin in points and Consolidated XXXX GAAP a was fiscal operating non-GAAP GAAP $X.XX fiscal versus a XXX $X.XX diluted operating for record higher margin was record basis EPS than was XXXX. X.X%,

EPS diluted a record fiscal versus non-GPPA XXXX, $X.XX was a year increase. $X.XX Finally, in representing for XX% the

a for higher the the margin non-GAAP prior higher was and and together margin, freight carries surcharge year, basis fiscal higher due a percentage benefits points pricing with of year, this material to actions, gross of the XXX the for primarily costs. consolidated which company retail, from full-year gross segment higher all entire partially Pulling than mix by offset sales and favorable

XXX pre-pandemic increased Consolidated mix non-GAAP SG&A levels reflecting increase sales from as of carries sales primarily for basis higher in a a brand. segment by with the La-Z-Boy spend marketing the percentage for percentage and full-year fixed costs higher back to an points, retail, which of

versus XXXX tax the effective for on rate a in was XX.X% fiscal Our XXXX. GAAP basis XX.X% fiscal

a in to the the higher XX% profit statutory tax rate, rate state to mix, income taxes. primarily was in increase resulting The retail rate state due federal effective due slight higher effective tax. Our from tax varies

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

Turning to cash.

by driven generated decrease For cash we with XXX% a strong cash inventories, significant generated cash and performance $XX reducing fiscal finishing customer in deposits. offset was the progress quarter operating million operating activities, We ended generation increase debt. $XXX cash from receivables no year, and profit by in QX in XXXX in the with Strong million the and alone. of in versus in XXXX fiscal partially million $XXX an in year

technology at capital and $XX to and year, openings manufacturing spent related plant upgrades, and retail primarily We store in projects. facilities million the during distribution upgrades our

acquisitions furniture gallery from La-Z-Boy guaranteed of payments year as on spent independent stores, acquisitions. $XX as million also well We prior

fiscal fourth full paid we the dividends million year, via For $XX to shareholders quarter. the XXXX share including repurchases, dividends return million $X and in in

to Before turning let the several me highlight items Melinda, back important XXXX. for call fiscal

XXXX years due COVID-related in included sales. will our this As million XXXX approximately delivered XXXX. demand, XXXX furniture the pre-COVID results reminder, XX% not of normalized a in sales, repeat backlog sales, represent and which Fiscal included at of backlog XXXX sales La-Z-Boy the significant a fiscal backlog fiscal to delivered $XXX fiscal over increase of orders. level a related increase excluding

demand flat geopolitical the furniture planning X% expectation that to uncertainties with industry macroeconomic will are the be XXXX we fiscal dollar down XXXX. Due and in surrounding to versus in trends, fiscal terms

backlog industry to ahead Vision strategy, base. growth double-digit of perform to the Consistent company than total our the that exceeding expect industry We from better our rate growth with and sales grow Century over operating sales and continue the target adjusted we margins long term.

near-term cadence As weaker front XXXX, and year fiscal we the versus throughout one considers fiscal result a expect seasonality in outlook will back our half. economic stronger a of a half

in be XX% we margins higher the to in range to is quarter, of X.X%. we To operating XX% our be in campaign expect fiscal most out we first of to in QX. X.X% Additionally, of pre-pandemic sales sales to in recent lowest investment year, the million. start and which will increase XXXX, the to marketing new this generally in than fiscal $XXX fiscal see million QX support $XXX our the quarter range

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

expect $XX our expenditures be strategy. million in to of company range with We the for to consistent million XXXX future capital strengthen invest as Century for the we to the continue fiscal Vision to $XX

half to approximately other of is repurchases. allocation dividends In investments half invest into our may operating business execute investments ROIs have to we given in XXXX, numerous in as and capital. strategy the the split allocation of where fiscal share capital skewed to capital we our to This Xx Century the any and over and to are return cost Vision including business XX-XX vary towards make anticipate the near-term, flow long-term shareholders Xx strategic Our cash year. be to the

to addition, activity. macroeconomic resume at significant worsening expect with repurchases in dollar no pre-COVID In repurchase levels presuming trends, consistent share we

our As a X.X under fiscal available reminder, have year-end. we as share of authorization repurchase shares million our

to back call the turn will I now, And Melinda.

Melinda Whittington

Bob. core, chain. At a segment, Incorporated. agile great ever future our increasingly company-owned Thanks about excited we than brands, have strong more growing an supply and La-Z-Boy and the of I'm retail

and growing renewed the Century instilling ahead team over delivering and industry operating focus We a the place talented on focused product execute the a margins non-GAAP of to double-digit and innovation are in our and consumer strategy, new have long-term. Vision

sheet allow will macroeconomic will uncertain the and important environment volatile, us investments While future. remain the strong move our is through for to our this balance strengthen making while to period, business

best stakeholders. and our share, is the to We returns post-COVID every normalized of all intention for as from yet come believe growth long-term gaining growing we have profitable deliver and base,

the your back for and Mark. you thank time call this morning turn I'll to We

Mark Becks

Melinda. you, Thank

question-and-answer the getting queue the to begin review please for now. the will ask period We into questions. Holly, instructions

Operator

Certainly. [Operator today Company. question Lebiedzinski coming and first for at is Instructions] Anthony Sidoti Your from

Anthony Lebiedzinski

Good morning for and thank the questions. you taking

know, can So, quarterly pricing may, terms the versus you housekeeping of question first, speak a quarter? maybe I the breakdown, sales if the just you in Bob volume for to

Bob Lucian

In specific percentages?

Anthony Lebiedzinski

if numbers more or you have you, terms? maybe in Well, in just general front of don't those

Bob Lucian

front have of me I right don't numbers in right now. those

four, saying? if for saying, You're this you're is QX

Anthony Lebiedzinski

Yeah.

Just curious pricing down. were those you revenue pricing, far as know, unit far surcharge as for actions, know, obviously, as which as and help numbers you volumes, versus the

wondering if So, not, just I you you. follow-up later, you If don't that in was can had. of front we have if

Melinda Whittington

versus those If big less in-line so up of over recall last Anthony, pricing, about all actions no industry those you'll all surcharge, be the priced you to our three increases pass-through big in as taken Directionally, and more of know, not of we the with now, that were ago that a pricing, is, wholesale saw pricing why QX XX% look at it's some true you plus and you what that, all and be What I year behind there’d over business than years couple in see in would that. years or of retail the our was mix. as as last so a driver then a certainly would of it's more well. and year on

to and retail, were is that stores and our tends Mix well and strong when kind and competitive in to you delivering tends quarter in even businesses we some our the actions, some, Furniture Galleries to stronger to as you sure strong mix in retail re-merchandizing and business, because, bit you we specific, retail sold did, as marketplace. our last we talked be across our we we to you know were of the know, help all know, start average make product as know, wholesale of going know, were, through take us, you is a

know, you'd several have have bet of year you of you years products. So, QX drivers a versus in the on you'd you've pricing changes. but compared not A last last a, not, there's QX this those year, of know, there's in huge seen what down back, to pricing bet certain numbers

Anthony Lebiedzinski

thank that Yes, it. color Got you for Melinda.

even as levels, know, or basis, partners far know, earlier inventory of. a seemed lot wholesale mean, as retail like a inventory. [I there your levels that I on saying they you you last with lot you can think you was, So, know, retailers I [ph] sell have it think, year too know, inventory into this you a comment much bloated] is year, of on I uh that that?

know, get that, your some sense wanted to now is in as to, we what of, please? versus So, color earlier on this know, are just shape you year, now better you

Bob Lucian

were things year. they Anthony this early Yeah, than better are

on folks couple First product because other inventories take their so to was high. year difficult were for of extremely this quarters

are actually than it's some they're going back have normal of actually lower normal, gotten but from hear wouldn't to planning we inventories, things to I say what some customers our So, to customers, they've on better. back been with that. a the at normally future, the is, folks recession been inventory from reason potential the lowering are looking an what in carrying normally they've why standpoint. in environment, – And current

recession. to risk from a to as used carry and reduction, a improve continuing flow X. and they numbers into we risk example the down XX, back move into a up I'm an to if and if they're reduce get their So, reduce – XX, of looking they're that cash making that their will like flow cash at

are the now. a consumers bit they with right to as So, their is size inventories consumer demand trying volatile right little the

be seeing with XX they we're seeing still or at we of smaller So, needs XX, haven't their too dealers that and just type some are to number if gotten – XX. they're at much activity still and

follow-up those QX own in QX. things. did then, encouraging It's than to once So, well I or terms That's that's of How segment, of as we're trends? of nine far opening – to gross stores, still seeing not as it a to you think And you a it better you're these about the know, your was planning this is as that the that, any much know assume here a are combination basis sustainability and quarter. hear. I in then talked And on again we about should closings retail segment, that very up in do? of you or retail is

Melinda Whittington

Yeah.

see retail, the still we've furniture we executing our where quarter-after-quarter, to market volatile, buying. overall company-owned Furniture consumer continued, we're but the investing we know, where offense, are in the where know So, very in is playing in continue and volatile, is particularly industry, out obviously, Galleries specifically that our we're marketing, retail is the you you what what

that going. much very intention to keep is is that our so, And

end differentiator much delivery from that can everything very consumer the huge our But a retail consumer inform us, and believe company-owned as know of also product us in raw We we gives for about experience. material it there, our our to control approach. best which end-to-end because full

inorganic, do factor And so, point, believe that's executional a know organic, And your to excellence. you will disproportionate long-term. we that's growth be our the retail that's over

[three] being footprint, equal, footprint the and current, of and current style – it about we we've across part Vision, about that around XXX network. Century there's about when everything We're started is, are [ph] stores XXX for room call part our we we round kind numbers, we about So, in Century of of as the that Vision, at believe talked at have. else

close Gallery. to XX the net, a new you across know, year So, our is Furniture overall intention to stores

keep on given bit them we total you any close still, that know, Gallery Now, year, just yes, as our as Furniture as point underperforming network, that you to a open up increase but know, rather you we'll we do intend this to year, stores past company-owned. a well machine track under both were we stores, were number, net than to starting and your aggressively know,

Anthony Lebiedzinski

Well, sounds you thank good and and of much very luck. best

Melinda Whittington

Anthony. Thanks

Bob Lucian

Thank you, Anthony.

Operator

Your next question from for Zachary KeyBanc. today Donnelly coming with is

Zachary Donnelly

Hey Bob. Hey taking questions. Melinda. our for Thanks

comps to So, want and back end kind I following negative that in can in know on how bank mentioned just in I that took you positive provide April, turned the information performing any, of And the comps positive that kind right? the sort with sure April. make or are failures then, were first detail were March February, of I quarter? have time of you place during then that following to of

Melinda Whittington

Zach. Yes, I'll take that so

And our First were all, you are, yes, again. but playing a course, down, There right, was to we kind of we're we're you that little driving on of on know, have back these right. make offense trends sure retail mid-quarter, these trend results. bit slow then again strong business, of are of where

how far know, Memorial as, you year for results overall new here, into know, I think lower trends. of the traffic couple were Day, As weeks were mixed, given you we fiscal a industry, our

slower playing year. this and with retail seasonality. know, like expectations and getting solid, slower you our coming across our to think we're own you Memorial is It's In the of much that is consumers the know, back normal in-line always know, industry. of I period. definitely again, to a But and still some Day keep the seeing been pretty offense though, And industry, was our ahead we positive intention those comps you keep in, felt

Zachary Donnelly

within the you. product delivered I unit Thank upholstery If can you. channel kind know saw versus any mix with well channel you of of on on the be volume and that not that you from case La-Z-Boy Furniture product Galleries out on retailers mix I or help helpful? wholesale of or And and and segment, just favorable dealers of as mentioned product you lower helps major channel whether would then benefit goods, us wholesale? maybe Network then there versus really the mix, offset kind remind Got just network, that. appreciate you mix, outside

Melinda Whittington

me let vast mix, When the we really upholstery. for – Yeah, channel is talk of us clarify. majority our Sure. business

tends versus like high-end when an and it chair talk we around, are So, are type all talking channel you and those be point opening you you a and based sectional power talking, things. sofa more to about know, leather product price know, mix, you with of

more channels. that to sell custom, to less whistles value other, manufacturing So, we're bells through selling what you business higher say, product be, general more higher tend and know added cost we're little a upgrades, tends be know, manufacturing furniture that our wholesale and whereas the tend business, product, to our over dealer of ballpark you you product, through know, the half more what is of let's kind galleries in those of than to half

sell right? of you So, manufacturers, product, entities variety that product, know, a

point maybe less and We're those to tend customized, one product. series of a more price be brands, of opening type

that retail and get are our doing product a we to we own So, when see well Is the is Galleries mix product offer. tend well, you our that cleared up? is what of is, Furniture what when doing higher-end

Zachary Donnelly

more Yeah, last within that the any that seeing kind spoken] that [have sort price assortments and know, given of nature. at case keeping seeing targeted so backdrop? the promotional, are were promotions the Is economic that or promotions furniture weren't [ph], much. clears mentioned that and really volatile then you still know, Thank we you things up. huge you of or entry today of time more maybe to themselves more very space competitors La-Z-Boy you discounts point And become more you I

Bob Lucian

remain increase we slight announced a as additional products and taken promotional fourth in across different merchandise to quarter seen that how it to we've of products, some the related steps ensuring that that during our competitive We've the channels. portfolio market and we activity our and we customers the some to different

on a at concerning now. a having obviously, it our not us for negative bit right and on not what our little of eye margins factor that, but our We a sales I'll time. call impact seen it's major, major it's a we've So, but keep this

Zachary Donnelly

for the time. Got I it you. you. you. Thank Thank really That's me. appreciate

Bob Lucian

Thanks, Zach.

Operator

the reached have management turn end closing over question-and-answer the session team We for will of the the and call to I remarks. now

Mark Becks

us the should Melinda, will joining Thanks day. questions, Bob, you I for you a be follow-ups. and on any great have And available have conference answer call. to and any Thank

Operator

concludes this disconnect your your you for conference lines at you. you Thank today's This Thank and participation. may time.

La-Z-Boy (LZB) 21 Jun 232023 Q4 Earnings call transcript