La-Z-Boy (LZB) 16 Feb 222022 Q3 Earnings call transcript

0:10 Good morning ladies and gentlemen and welcome to the La-Z-Boy Fiscal 2022 Third Quarter Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be opened for your questions and comments after the presentation. 0:24 It is now my pleasure to turn the floor over to your host, Kathy Liebmann. Ma'am, the floor is yours.

0:32 Thank you, Holly. you quarter us results. thank fiscal discuss and third 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 X:XX presentation, you Before include like that future I’d some about call matters. performance statements begin today’s we the to and other statements remind made forward-looking La-Z-Boy’s in

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

important on of strong for strong and delivered versus time quarter, third Furnico shareholders demand $XX and (ph) delivered Ongoing we including in QX, Kathy, of Manufacturing Yesterday XX% reported our Alabama stores fiscal segment. the owned X:XX closing and versus quarter our in share $XX furniture afternoon La-Z-Boy the sales all ’XX a and million returned sales last Thank to million, retail high in following five Company market, everyone. up included profit morning, which acquisitions consolidated bringing results, through gallery operating company total close you, the While pre-pandemic had After our growth, impact X good own strong to than of the wholesale record of and repurchases and dividends year-to-date to electronic market top levels plans, production component our line both disrupt our and the which operations, X:XX ramp comprise significant across UK. supply of we amplified balance the delivering a This at capacity to challenges. manufacturing Within the significant expected. higher manufacturing level affecting also November quarter, near-term a in majority beyond quarter of the the business, sales a had efficiency business, our even continued and very chain volatility actuators, our of parts, our previous performance expectations. the but strong lack chips including on majority profit X:XX plans of the availability

which of capacity significant Furniture such our our are other La-Z-Boy production Galleries obvious diversify component to domestic over suppliers component the a particular Beyond to expansion, parts our Further, in one meeting parts in their level production outages retrain work team including have are are the parts environment, magnifying supplier as own With X:XX challenges. in given are of our X La-Z-Boy help including staff new new, for the parts our our instance, by plant creative best end inventory large was demand past disproportionately the invest This relatively styles of in base, team these La-Z-Boy, facilities year. goal in higher we this cells Mexico customers these experiencing products, stores, and retail, greater direct serve solutions. available. styles the and until X:XX to for at our a including procurement of they drove affecting a consumer sell need inefficiencies manufacturing on our impact. manufacturing trained specific as too thereby In on increase continues financial exacerbated portion our one key outages being near-term and labor of unit to sent delays, to

continue virus from flowing impacted our here. freight variant In the casegoods expect again, high much of had inventory in contraction X:XX consistently consumers to XX% will as is We more Additionally, product quarter. or them ship fiscal out, plant will Product at related disruption casegoods and during majority resulting shutdowns quarter, during Further Omicron to operations workforce impacted to XX-week is ship across disruptions were The as all and make our minimal the to be global ’XX available when a wholesale production sales due our to significantly Vietnam, and chain supply exacerbating first prevalent and while. the managing and normalize received geographies. likely costs we sourced segment the of to this COVID we the the X:XX profits we exposure. times January, we to progress remain where the for manufacturing customers. of product half of

higher As our peaks highest last the our of our team health of and priority. previous These safety are magnitude winter. peaks than orders remains worst

increasing gains from the these costs, of number it much impacting take trend downward resulted well quickly, of being North as labor will sales than slower X:XX input tight now as disruption. but challenges, in America, market and recover expected, profitability to time the Managing with COVID the the seeing has in growth of we're As cases across and delivered term. production pace the ongoing near

increase the focus company Our improve more quickly efficiently. of and the our to agility production is across to supply one chain number

of training SWAT and locations deployed our comprised to teams experienced in challenged leaders most We output. of our have some to increasing assist most newer,

nature X:XX to solutions diversity, component and while supply do each protective noted, including we builds and key We at other our to them. improve These And upstream extra expertise capacity, continue levels. our identify efficiencies, down helping significant, we parts and Ultimately, weather alongside to already all-time and strong expanded work leadership suppliers to to supply on must veterans. additional backlog, customers temporary through fresh and demand challenges are But sourcing industries we we get delivering perspectives for creative disruption, service working inventory our record managing better have our and from industry challenges, are bring increase to sales product day hired even with act staff challenges, is our better in at as each shifts to continue cost consumers. key our

growth in can North American footprint. profitability the longer-term network X over La-Z-Boy of total Turning with written expanded across double directionally the Furniture our the X:XX line toward same-store and the Galleries know of the achieve ’XX our of about manufactured we La-Z-Boy For product continued for X% the X% demand and stores, third with sales sales back third are time. products and annual rate working our down year quarter compound up the company to X%. a ’XX increased Network While written half years. annual Furniture for digit levels, compound for the across compared in growth segment indicative prior the are demand our La-Z-Boy top two versus X% a represent strength fiscal the for X% pre-pandemic our X:XX the products, rate at Galleries to own years same-store Sales our we at we quarter and fiscal of quarter of retail were

negative remains positive any underlying the or even comparisons period business past sales X nature in of strong. Given given may very unusual the prior with years, slightly the shift year period, same-store written compared as

our the Vision, on sustained now $X our specific And impressive intend to pre-pandemic. QX same-store growth business the Bob La-Z-Boy Bob. in company compound XX% additional writing acquisitions of $X its of new addition to third to per stores opportunistic XX:XX fact, more strong me stores average quarter, last sales, growth XX% the sales turn over X:XX let results of this annual to Now year's quarter annual review on recent detail, Century the independently we with across rate the business as million years. Alabama also and such business, network store continues And trajectory our In XX:XX our in part strong extremely network retail more existing owned an to company X million as Joybird grow about with last versus than this call across acquisition.

XX:XX Thank good Melinda morning and you, everyone.

as prior of quarter and third diluted unless $X.XX year otherwise. and quarter. increased $XXX higher quarter, actions. delivery and Starting operating segment As Non reflecting operating of EPS Demand performance presentation and rate ’XX XX:XX raw press was current will for in to comments GAAP X.X% a period, and $X.XX effects compared was sales the shortages. across XX:XX the quarter versus of margin which our capacity And year's and detailed reminder, component quarter. pricing ongoing As GAAP $XXX manufacturing diluted segment product the the to a we margin continued our operating pricing was material $X.XX for the versus and trends On tariff third business. and third reporting both XX% for quarter as the discussion, versus to the Consolidated prior to demand are delivered income prior last strong higher $XX for quarter. and and X income release a higher million from non-GAAP of Non-GAAP a X.X%. in was GAAP call margin present grew here sales quarter from XX:XX on the strong. our believe in costs stated the conference section the million year non-GAAP segment disruption remains with the Non-GAAP in results and enterprise exclude reflects XX.X% operating I increases versus prior better appendix related the XX% wholesale surcharge tables $X.XX consolidated fiscal operating for versus underlying sourcing EPS basis, items freight moved XX% slides. results quarter GAAP our reflects GAAP years. a period. well and increased ’XX specifically Consolidated and with the XX:XX operating were year’s year as my focus million driven as our of fiscal compound third We basis. fiscal ’XX duty surcharge parts Compared was actions year about year on last $XX the the pre-pandemic third growth over annual in wholesale by sales XX% X.X% the increases This with volume. was non-GAAP the well non-GAAP last million. non-GAAP

exacerbated We challenges inefficiencies which labor also manufacturing are related by peaks. activities, the experienced startup COVID planet and to continued latest

sales non-GAAP and impacted higher total operating a sales. XX% increase margin operating corporate than year higher On in Joybird’s to and margin third casegoods Momentum an volume XX%. performance X.X% brand product deliver discipline margin. all-time basis, Joybird quarter versus Fixed leverage our Costs to significantly the the the year increased pre-pandemic For and sales offset strengthen XXX gross reflects in fixed volume and grow increase invested percentage business These non-GAAP of impacted quarter, in a the delivered costs for to dollars lower $XX digital non-GAAP growth Additionally, point shutdowns Vietnam significantly driven reported doubled, with high marketing million, Driving delivered posted material flow million, sales retail was in by breakeven and negatively in segment as the increased our freight continue through compound sales declined delivered and while rate Retail costs operating prior XX:XX profit record This pricing we two-year margin business. a point versus annual new on COVID direct channels. as which and period. record quarter, by and decline $XXX of leverage quarter. building marketing the the of Joybird, XX:XX expense more a year primarily the to quarter sales spend the increased to an we which record approximate awareness prior acquire quarter. same-store basis roughly in of the is challenges partially related experiencing marketing customers the the ago on for marketplace XX% consumer other the raw XX% compared XXX profit representing surcharges. as ’XX posted management. versus fiscal basis of were is XX.X%

noted sustaining this way continue margin their for we forward gross Moving marketing to points to XXX our delivered of versus as offset back which on will to actions primarily XXX profitability. non-GAAP decreased a the ’XX in Consolidated decreased quarter year target sales, gross wholesale pricing to pricing reflecting of expect work primarily basis while fixed for fiscal together, partially entire a continue GAAP actions. all higher quarter, and through due SG&A retail wholesale segments. Putting to for And disproportionate levels. growth quarter margin challenges invest XX:XX to company by leverage XX:XX consolidated and the prior deliver surcharge basis third we improve brand sales the percent the sales volume across our points, will in non costs

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

The liability unfavorably the related of business. the non-deductible to fair was impacted value year third of contingent of quarter Joybird a last by acquisition our adjustment

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

to debt between held help rate full ’XX increased on production Year-to-date, year-to-date, million from generated we in enhance operating $XX and tax against effective we've and delivered supply the levels million cash. $XX disruptions XX.X% protect year investments period inventory million cash cash be chain be activities. and and ended to in no $XXX Turning to for with and higher the in to to sales. $XX in support We expect We cash fiscal million XX:XX XX.X%. returns invested our

We improve to in spent $XX in related year-to-date retail capital store have stores. – also primarily million

important back Mexico, of XX:XX plant we at our Regarding paid share XXX,XXX authorized million Melinda, through the to $XX to shares quarter. technology more the me repurchase shareholders dividends million to and open during stock leaving quarter, program. have in in of than $XX in capacity turning distribution shareholders, third the in spending back returned upgrades. million X.X Year-to-date, million existing to ’XX. remainder we the call million in manufacturing and several facilities for let continue Before upholstery XX:XX repurchase including share our cash repurchasing New returned $XX highlight via market, manufacturing $XX upgrades dividends shares fiscal and shares, buy items the

us our sell fiscal near-term these noted, demand normalize last are third the in range of will end Gallery higher and than although the slightly XX improve chain likely Furniture to unknown, strong higher begin agility remain and quarter. gains maintain strong also will to we supply half products, consolidated XX:XX adjust XX:XX continue capacity weeks to per than our to the sell disproportionately a year. production benefit and XX anticipated. our as The value delivered our commitment across benefit to the to and remains to weeks To ship factors to disproportionately be as through will versus gallery XX:XX flat trends in by capacity, much of receive when QX expect our incremental strengthen our for stabilize fiscal enable include operating to global product disruptions improve high. manufacturing level stores. our furniture X.X% our disruptions. all America We business, we our of greater a our to is casegoods now backlog non-GAAP North production steady and customers. expansion we slower and service expect our will versus will these it fourth ’XX long-term footprint into rebalanced which will timing continue Specifically deliver weeks ability demand during sales margin Stores. La-Z-Boy weeks margin this previously This we XX increase our although will XX increases levels, X.X%. with progress, As ability business highest chain better challenges third more the of containing week impact and address To Efficient to this to we plant demand, consideration, quarter products, to pre-COVID supply up compared quarter consistently results the ’XX to production which and import to operations recall be first Taking

including will business company goals. against make to progress the related our as next However, investments work strategy. these many to the the as XX:XX variables Finally, we future, Century affect noted, strengthen for quarters several in Vision the

We the I expenditures of will in million ’XX. $XX XX:XX be expect for to turn call to back million capital the now range Melinda. $XX fiscal to And

XX:XX Thanks, Bob.

business supply trailing near supply XX:XX profitable drive growth headwinds partners, consumer our leverage as chain financial line $X.X and from end nearly our and time And consumers, to you on to XX at of XX:XX term Kathy. strong. non-GAAP execute ability our near like sales sales. And the are on of our new And ahead and this customer to ramp bottom We we term. efficient stakeholders. We morning. the Demand all our benefit deliver sustainable. call industry impacting driving remains are operating brands we chain to the your our grow our the to months In production billion our are growth Century value laser looking expansion further While top back and we of would we this products margins turn immediate is Vision, I'll strong is poised efficiently focus sales extent for long-term to double all-time are to performance. out, highs. term, for thank momentum strategy focused our Delivered believe to the digit base

Melinda. you XX:XX Thank

begin Q&A period. will We

Now review a ask the for Holly, please instructions getting the question. to in queue

affiliation, first Certainly, is your XX:XX Griffin. question for pose your coming Instructions] from then Bobby Your today [Operator announce question. Please

Thanks doing and well. This Griffin everybody's is Raymond questions Bobby from XX:XX morning, for buddy. James. hope Good taking my

XX:XX Bobby. morning, Good

morning. Good XX:XX

and the on is pricing be first, as how on increases help we forward? I been guess realized realized? move you that want just maybe you've and price the has much connect guess, touch I much through are left to passed XX:XX how still And where to us I

the vast now XX:XX the brand. side, seen pricing through of QX, more majority Joybird sales of that on in bit and out the of for side both casegoods delivered the the a we've some giving QX through and got just La-Z-Boy Value into import little little and is bit coming what that a come We've increases Vietnam. the pricing will freight, we

XX:XX Okay.

the things in just the wise of having you again, we're more pressures supply versus, way have whole well. expedite efficiencies just that and get is items, to challenges these that chain Bob, cost of some in seeing recent – to out, So to going on and pure challenges is is as pricing based take have you're to to more more or you're take gonna cost caught

XX:XX of It's effort it's inefficiencies more talked with relates spend to money disruptions, our and as you that extra of the that operations a and deal taking of former more chain the what in relative we a, to have have hits some supply and the work about we and that. it to we're of to

XX:XX Okay.

input watching that and Now, as we're we constantly XX:XX costs, forward. continue go we'll price said, needed to as

me sense. that guess, XX:XX I last and appreciate the Okay, makes the one. that's then, on detail helpful. And secondly I -- for

Secondly times in maybe I But a tough but with year positive I little for so it's business to year-to-date, have on come get kind been at. production? a are Written given down far, has backlog. color pretty even the backlog given that once and where been the good was materially XX-K, increased want backlog has unique hoping actually we a just size directionally the to it's has get of typically to of me, say, production trends the increased. know the little now more

a our to you want backlog exactly, come of it's consumers. of the to ramping, but it's And, that – times. right service same, and a because that's strong our we as start an fast and equation capacity. strength to it's lead customers about again, and at backlog And demand we But better see same down, continued, is now, And, said, place. equation of demand how XX:XX enough ramping we're our the not shorten our Yeah, capacity honestly. we the about truthfully,

can have network. the the That’s same-store the La-Z-Boy wise, stores, Okay, me, question we couple And sequentially the last I look XX:XX with a licensed slow gotten lastly stuff for On owned helpful. you did When and the mess basis, and year they questions. sales my seasonality. guess, I written a whole for of of sort and then I guess year two understand timing is, price now, increases at

into, to that on dollars changed at percentage So just written if as of XQ, guess, take to put is into written look more you XQ anything I to from two-year you business, slowdown XQ if read materially is basis? there that a and

the any by more was down the for the and on Omicron. to that strong, about XX:XX overall businesses our in is But ago, bigger was lot is demand And, a it you thing trends that part, affected growth And wiggles written your any XX% overall, we January as before XX% it's Canada, think period period. is December, pandemic. so still was about sustaining. keep get than the comparisons I most they quarter different the think stay shut high year to given pre-pandemic, given point and of bigger mind this across that were strange it continues get on, than business at a base the

that's But the as strong speaking right half grow pandemic, course, keep number prepared other now, remains customers that time, selling about So my stores. as that to is continuing was I kind our on mentioned comments want $X we same-store our business existing to expand our is store And outlets, $X look And on is the million business, to and that, the average stores other before our business we'll written sales, that focus just million. well. at of obviously, own well. of it we in expand retail same strong. business through stores to per and of of

you that's – and back queue forward. else. questions. of somebody And taking in going jump luck, I'll turn jump you're Okay, helpful. for the back over very best my XX:XX Thank it

Bobby. Thanks, XX:XX

you. Thank XX:XX

pose then next Your your XX:XX Please is question from your coming affiliation question. Anthony announce Lebiedzinski.

thank Sidoti This the morning questions. and Oh, for and XX:XX morning. Anthony yes. good you is company and Lebiedzinski taking from Good

that what increase the margin at QX, factors as biggest for sequential expect? guidance are the driving far you operating as for that looking So

to progress our capacity, the train are The continuing XX:XX make for as well that increasing retain folks getting biggest to products mix sell we I the better, make cost and slightly opportunities the that need hire we factors higher through have to our and – and our say continuing of against that capacity, as retail improve with that parts on hire improving we outages should outlets. some

we those are to just factors we will that So versus drive higher the that us sequentially margin key it expect, what help delivered.

take we XX:XX on And to expected those quarter, are as and go. about along, efficient going more capacity really had Anthony, all trajectory. the been servicing same but we really and capacity the recognize – Unfortunately, it's at going more towards the than it's looking stronger efficient that marching consumer capacity, builds. same time, we driving and factors getting all we've we're this And it's that to more setbacks

XX:XX Got it.

kind month, Okay. there more terms you last notable but any the about, it been has of quarter since shortages so of And change? the ended then of Or spoke just in that the component is same?

and always have XX:XX been there's improvement, that doing suppliers, of of There mean, bringing shortages. been on, I the we're of are fixed. relative it a starting some the positive away. switch, extra work a not But turn that we're more it's we're and impact incremental our online, sequential just it's with a some has some to problems go not to flip – suppliers their

the improve next just year. and of through half will move first the we that continue quarter to as So into

again, hear. And last me, that's did question the to so okay, encouraging That's so very XX:XX well. for Joybird

should sales profitability of as we about for it of accounting the as think growth to how for Now How quarter, become X% big that how could longer-term of about segment? that ultimately should hub, total think that and the happens? Longer-term? we business

XX:XX Yeah, with Century said over obviously have, we we've time, a to block a we Century believe focus we Joybird total our brand. our Vision huge invest growth consumer maintaining our an grow that disproportionately as a company, it to do like, we've And of reasonable for is and profitability on laid believe to that La-Z-Boy that room ahead our as within out have building industry. grow in a for second we Vision, profit brand, on and necessarily because One expecting of brand, the really so integrated that not the pillar La-Z-Boy reinvigorating look as A the business, leveraging will pillar is continue that is growth it that that will we mode. we we is business believe opportunity it brand. really brand, the can grow in but we

So modes maturity. its – of of its in different

XX:XX Understood.

Okay. going best Thank you very of much luck forward. and

XX:XX Thanks, Anthony.

[Operator is please your pose coming Then Brad your question announce Thomas, affiliation. Your XX:XX Instructions] next from question.

morning. Thomas Yes, morning, XX:XX Hi, Brad and good Capital it’s Keybanc Kathy. with Markets. Good Bob Melinda,

XX:XX Hi, Brad.

Good XX:XX morning.

through But similar far. if you Omicron and XX:XX obviously the what the follow few just a thus been of trended broader of could orders some wanted you're In for probably late. as more just things February, wondering me payments right, on, All questions. here quarter and weather, we've as lapping consumer about any earlier having written along the maybe vein the to provide heard up seeing the color concerns headwinds for how on stimulus cadence of

that in your of any seeing you're if curious business. Just

XX:XX was other any through saw we there's trend change can't as hit January dramatic by than, say fairly temporarily, Omicron the quarter Yes. noted, I fast. right? I That

If you year. Canada think comparison about, was from down last again, a shut essentially standpoint,

Now they're open.

I se. comparison trend, a So Canada don't seeing more change great. from long-term dramatic think looks But per we're on basis, a any

helpful. That's XX:XX

is right? on so quarter far basis, what a so fiscal feel tracking And you're written your that with fourth is up today, like you seeing

in couple going in over XX:XX pieces, base. isn't written what right a at think point out period including that metric written the challenge at base would I'm guess look quarter doing the different same-store But what XX:XX base right are now comment the past. any things it been important as certainly not I time. But I many of it when is for I Yes. you different asset an kind metric on these I I an is fourth maybe – – think – also moving so to look businesses would has we now would sales just to so it's as there existing than of are only of with the to

also written is of call of million year space And some it, in believe through, ago they – we off compared our unusual metric existing in But base with growth written base at last say, sale marketplace months number. As anyone's So pandemic XX:XX the what more year, how over as would but we We'll And off delivered it had what $X to of were X business, continue we to an only same and what our where XX:XX looking believe are the been. business more look directionally about today, then, Vision, any at to I the forward, we're well. course, given opportunity the – we coming go it's the pre-COVID, than acquisition same-store same of growing will also time, independently an in achieving past be here drive metric, of off as you expanding are number stores. stores XX So additional support we of past off the years important it for, is stores stores what couple to of which talked would of we've time. of that are as go we this base, we'll of sales through Alabama same-store on positive right? businesses continue we the the to forward, not sales we stores, that averaging do in the store grow per additional other our continue have of or that around So million that part just Century stores. evaluate at by $X through like a owned. of sure, for is the XX% did there's

just to mix sort to times any the XX:XX context. it. That's if we way on that put around like? sales Thank about, or right of trying what Got want delivered and as I so, you. ability we're longer-than-usual about product basis think I being is thinking of And you. sales, just I'm whatever that you now some you're think are impacted it? sales any some by to quantify reported you dynamics, And Again, guess any is offering talk written that just helpful then of guess your or sales there context and as quoting inability the

Some of the stuff.

absolutely. Sure, XX:XX

is And months So as all business our that sort of comes and chain on up our right? as business. Right customers got our supply running we're to couple good That's getting service whole from La-Z-Boy to it run down That's X our That's is Joybird plants our to to – be. things. or not X and shorter expansion consumers, right so on efficiently running over on focus happen. our now. that XX:XX of have quoting now, time. a not where would lead we We're time,

simply backlog, just that, still do our in with on we As our highs business. what's at all-time our backlog is La-Z-Boy

again, our got are just we've profitability to So to books what's backlog delivered a and the delivered sales after improving already the continue with week improve runway drive And that alone, in quarter-on-quarter. we XX:XX week. will drive incrementally on just with orders increased sales

delivering to we're customers coffer be down, same filling to better to that that we service at consumers. down we see because slower that do you even than XX:XX will away. looking through time, We drive come, our to we be right? the on backlog sales for to to At coffer delivered want expect into we sales keep deliver. but more But through filling we hoped, just the what as drive and and the a little right we bit had capacity. to that And want in This with as given that quarters as the our to how noted, books, continue incremental backlog Bob turns improvement quarter, again, orders work want

Now margins And so well, the strength the written the with around really with that, time. blocks that a building strengthening $X.X our confident pace our Century pre-pandemic will for we feel we off we the we XX% we were – improve trailing So we will of believe at quarter and equities months ensure continue brands. and exact about have our to drive, reinvigorating total long of that the in but any is $X.X our over business billion shift of we Vision, company. as And bit, brand may XX I'm grow growing through for do up right? ongoing term. XX:XX to sales little to on we're given we – that base believe Pre-pandemic, last can do And billion sales. that grow is

we're about XX:XX paying are bit around for you money because still product, do that they're industry business. the other checks from that's written more that good and sure lead to a consumer -- to take weather one are able times. more to concerns the to that either stimulus and and get telling about but that X and Not bullish One there, who an about to get higher furniture. in thing consumers X them sales written our going some doom prices from – that industry, the and in I'd add a brand it's gloom that strong When standpoint, want of going we're the sales away strong, to the that, still here little how happy just longer things, out and that product from we're make that a on and indication the them walks perspective, months a furniture, is you've come the those our we're feel of

very Absolutely. facing industry right well. of navigating no those and many the XX:XX complexities you're now And of is question untested challenges just and level

here. people guidance right the sure to of some quarter, want on fourth I just doing the the Just are for math make

XXs at your low think that perhaps that up versus in we implies week flat looked percent. if on XX may being sales high up, XX fiscal and I be a weeks to XXs fourth per quarter, to basis weeks

math sitting only sure I the Just to just here XX% growth. with the right consensus we're doing think now, I make want there. Bob?

The math better XX that will XX, XX:XX it and by slightly QX divided correct take it than is your multiply be that. or to by

give margins you XQ, a point for I just a just is clearly versus we're me of you here guess, I guess if here. a in the at then focal Oh, much dealing go last the with one the how may some as that La-Z-Boy quarter it bit of for all, transitory and are back operating pandemic, part we that issues is And for This is how, kind about to little outlook Perfect. this coming clear your long-term think of issues time. be of XX:XX kind changing? reflect should And more cut? structural. if do on guidance third away the for margins

can in talk a bit add It's then that and about bit, of each of in. a I'll Brad, little Bob XX:XX those.

So the we've is Mexico, the as plants got that labor we've well first the X thing in U.S. brand-new as opened in challenges

slows new, many we is XX:XX we probably down get people to really a that saw So furniture. we lot just X got of making talked people months that to it we've chunk a healthy a now in that the of And of kind plant. when average up of bit. – to third were average takes new So about past sort opened we've X are January, throughput in what them that brand-new this quarter -- little and with

the disruptions the in more it's exacerbated to we and the this different on the quarter end, – you're parts, always artesian Omicron, We sales production putting and are What every adding outages, capacity. and so is process. the those different – saw continued an day

putting quarter. different to they're So always we the that not That gains people to is efficiency in we trying together we furniture. there. this expected make XX:XX you're get what saw mean doesn't So didn't

on getting be every be we're thousands to But destiny, folks own to able our controlling big at And better and that. to doubt, chunk weathering dealing of are just you about at on with trying progress better piece we're manage you're disruption can't training again, production a of of progress quickly big to day go about don't of we're so training the people, that how XX:XX be a forward just there up trying and furniture there's margin actuate exist. efficient realistic much in some chip realistic possible. our pick come we shortages So investing be on is as right? It's chips, as and buy to they uncontrollables. as you continue getting right? But that no more like, They things the thing, very your inventory

of able continue to things will so to our And and going the make own So those all manufacturing but we manage that work this, forward at control So we trained will a for of a probably structure, to weather the our better across -- us some on of footprint be those will America have I service where cause exist better, lie North Yes, headwinds external with disruptions. getting structure of XX:XX than structure to overall progress. own end up of lot yes, distributed things we'll think some But facilities of is there the had continue within our to pre-pandemic, cost being inflation so agility we though inefficiencies. sets getting of better are real, even will have that. forth, and folks a they and that our longer-term.

much Melinda. so helpful. Thank Very you XX:XX

Brad. Thanks, XX:XX

XX:XX you'd finish comments There with? closing have queue. like appear to you be no to further questions any in Do

for your morning. XX:XX time everyone, this you, Thank Thanks, Holly.

Bye a touch have follow-up If you questions, have in bye. and please great day. be

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

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