La-Z-Boy (LZB) 22 Jun 222022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the La-Z-Boy Fiscal 2022 Fourth Quarter and Full Year 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. It is now my pleasure to turn the floor over to your host, Ms. Kathy Liebmann, Investor Relations. Kathy, over to you.

Jenny. you, Thank thank fiscal and joining to us Good fourth you quarter our XXXX results. and discuss morning for full year this Whittington, Melinda Officer; Chief morning and Officer. us Financial Executive Lucian, and La-Z-Boy's Chief Bob With President are and Melinda to will midway segment the financials speak the Bob will and close open through. and call, performance

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

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

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

supply volatile driven environment. furnishings. $X.X continuing while Sales strong chain exhibited disruption, our to and demand navigate dividends to margin Record pre-pandemic year record fiscal dedication. distribution the improvement. and sales and delivered billion home fourth record momentum we Vision, growth for quarter wholesale and for company-owned team our profits ahead the hard sales in Record entire the performance of the Highlights the morning, talented last thank level highest labor from million share year market. consumer profit delivered the great than global their close by our our our I'd XX% company. Kathy, QX, a 'XX. take of work, perseverance were the sales And through in our our of We delivered a of strong. year total through afternoon, Sequentially quarter non-GAAP for in centennial this sales market, included and all strength delivered finished strong repurchase, yesterday significant delivered and XX% fourth pandemic, delivered history, the brands, and the fiscal for profits good $XXX following consolidated our and the Century full and Thanks, for to results strategy company segment. for retail our to across tight the these in reported $X.XX returns year for everyone. more opportunity per Joybird, in, Late the challenges of operating 'XX, shareholders the share, like we in for segment, and for are of sales results All and year XXXX. fiscal earnings and vast launch

and amongst delivering are results employees challenging our in phenomenal Our times. assets, are greatest responsible for these

X% the retail reflect some broader in year-over-year versus sales quarter, in impacted more QX our sales of than as traffic. Furniture the network concerns. due the stores positive quarter. with March, Galleries we segment a were strong and inflationary decreased lower to this outstanding base for written The results, celebrate across due After we difference note to Written we written primarily saw pressures quarter, X% the of fourth fourth fiscal dramatically consumer year's for these the and many geopolitical in ongoing recovery volatility. closed impact April trends that significant last network same-store As sales for is in La-Z-Boy decreased fourth own Written growth, company-owned deterioration February 'XX our segment. and period Canadian same-store entire mainly retail retail

the a growth same-store for written fiscal the network and approximately For And the Galleries over Company-owned retail our as flat grew increased La-Z-Boy entire written company-owned XX% sales years. Furniture for full the X% rate well last compared fiscal year, of for as compound with were segment. annual the segment network for at XXXX, sales retail two same-store

the two at last years. a for XX% XX% Our full Joybird growth year's compound fiscal than business QX written this quarter. Joybird's over were fourth rate last annual the X% year, And up sales grew rose more and of

we term. begin the leverage to and and backlog will strong historically continue sheet 'XX, long capabilities our balance to business our As we high fiscal for strengthen grow the

first, times. on, continuing customers our focused enhance to shorter to with lead are We capability consumers and better our manufacturing service

begin the were four consumers customized in to over weeks quoted months. fact, XX previously Day offering to our weekend, we seven versus Memorial pleased In XX to product

from shopper investing allow Vision consumer drive with us enhance brand the significant younger to improve work young sales television we to significant of consumers, plans our Furniture new this consumer our engage Galleries marketing new conversion. expanded traffic 'XX, the achieved to first Vision shopability of grow we La-Z-Boy expand new La-Z-Boy more purchase. tripled opportunity capabilities acquiring and than a power with fiscal foundational in will grow ensure in launched Company proportionately organization, to to they our XXXX, continue Bell, research, this grow base. reliable the the and Century wish the Joybird spots omnichannel have a execution Joybird, sales with marketplace, year consumer offering on business, La-Z-Boy XX so network new enables featuring consumer, broad we've consumers by On execution, In share. And Century about and to as focusing enhanced brand stores. Second, the and our us since our company's wherever we've These with demographic. our investments profitability, Company Kristen of to insights and ambassador strengthen relatively profitably and who a brand range third, canvass that strategically the including in And initiated to resonates

We work the the ability successfully both segment. and to more the strong to to important to execute six agility will Galleries our in sides in of our foundational improving foundation, Building of agility have And recognizing brand fiscal including and of and producing the reaching further profit our the business that backlog, than Today, down And one we'll of we Joybird stores awareness Joybird's its of locales market open I'm the owned developed And focused XX-year and accelerate earn continue strongest popular testament 'XX, already growth. Furniture element La-Z-Boy in the signed slated stores will omnichannel five several in to wholesale 'XX, Company, small-format we're acquire Joybird's well-performing to marketing urban our manufacturing our is Spokane, first opportunistic share note the 'XX. stay we we going the on build retail acquisitions focusing supply pleased to experience. strength on fiscal six the enhancing already increasing agreements roots, across more end-to-end to Galleries have months furniture on complete dynamic, showrooms eight experience. strengthen and our Washington. while La-Z-Boy the and we margin-enhancing of over a that Denver enterprise to provide in are in times Furniture ever, have and our invest high-performing across acquisitions, fiscal we and new independently consumers retail five In are acquired true to Retail digital the La-Z-Boy We These forward. we are benefit finally, and ownership environment win which purchases shorten integrated model, the company-owned strengthen lead enhancing chain. stores, as capabilities history. we where La-Z-Boy significantly stores, of position a and remain consumer strategy on

experienced enhancements the we've and series in production chain expanding supply changes operations to including with American to structural our ramp our other they we production industries our backlog help West enterprise new as the increase footprint the to a drive made our service term improved and from North to 'XX, will to efficiently. longer servicing made capabilities fresh with lower leadership in During capacity with of multiple to short capacity, will across team bring Coast. fiscal term, a facilities and Mexico. increase cost manufacturing We've These perspectives contribute added across agility full operations in key to

margin Sales initial and do. In base supplier to but a environment. will there managing a be protect shifted disruptions. an our in the short, have plants are We parts, to successful volatile progress business and procurement structuring mix, operating strategies more moves these in what geographies future changed reflect better product in inventories made is to with continue outages with expanded also work within output multiple and QX to be against we're processes strategically to maximize

more furniture premier forward we company in we'll gain and a nimble As a grow of ranks ensure well-loved to going share. out that pandemic number the fragmented market, highly become two

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

everyone. and Melinda, morning, you, Thank good

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

falling Additionally, fiscal with quarter. week additional 'XX fourth XX in included the weeks, the

quarter. increase $XX GAAP was fourth year. an XX.X% record million the our and last every in quarter The the profit $X.XX six those income approximately margin versus non-GAAP week Saturday non-GAAP $XXX quarter. a unit which prior increase. $XX ends the On in pricing the quarter, fiscal Non-GAAP April, La-Z-Boy, increased year we operating million GAAP increased an sales by was operating non-GAAP increased even year's million, level XX% was production our the operating you surcharges, have $X.XX years, on in sales quarter, the current and million. versus diluted For higher of 'XX a year was Consolidated increased quarter, was EPS quarter and had week operating week the results. income fourth and versus last in quarter or operating prior consolidated to year's to of GAAP quarter EPS the of XX% record fourth year XX% in Consolidated extra X.X%. new to extra year fiscal of and a $XX margin five basis, fiscal a reflecting last without year record record versus a $X.XX extra a current $X.XX diluted for

year fiscal non-GAAP a even $X.X versus increase GAAP X.X% the GAAP record by manufacturing non-GAAP a 'XX, to year. $X.XX week. year the diluted diluted versus a $XX fiscal higher $X.XX up versus year without QX, which full strong billion, fiscal XX% 'XX. week 'XX. million, on $XXX fiscal the a Non-GAAP for Sales was to pricing demand, $XXX Moving the for extra in million operating was increase. approximately and profits EPS in capacity reflecting The for EPS million. extra margin was and sales the $X.XX operating surcharges Consolidated increased prior operating ongoing had year, increased GAAP XX% results a margin income to was record non-GAAP record XX% Consolidated $X.XX income 'XX record increases, versus operating increased in operating prior X.X%. and and was

pricing a and the comments a move here prior for growth operating versus the manufacturing Wholesale the unless by continuing of well two receive I capacity, our plant as delivered in agility mix April a product increasing margin the offset basis driven million, the non-GAAP specifically related quarter. will quarter otherwise. and $XXX wholesale was my last sales by the across Non-GAAP focus with on extra reporting, impact XX% freight Vietnam higher segment margin from costs segment, surcharges shutdown and increased year pricing the record unit from quarter. differences driven period reflecting X.X% for segment our non-GAAP and increased with the increased QX, XX%, This improvement to to partially COVID-related elevated The operating Casegoods surcharges. with week. XX.X% material first country's inefficiencies compared excluding Sequentially to drive from in was volume. by in the of points, changes as during our was Starting fourth year's to operating costs, began As discussion, channel made of XXX grew margin to stream months to supply steadier following stated many chains.

this consistently the operations of and year Casegoods product, consumers expect in we freight realized it We to as to half pricing. ship receive more fiscal normalize first

high For and increase a extra quarter, were excluding year's Same-store XX% our prior sales XX% the a increased delivered cost volume. the margin over operating Retail XX% non-GAAP higher quarter, dollars to fixed the prior were sales $XXX the XX.X% leverage in delivered XX% non-GAAP profit versus Retail sales the record segment million, higher posted week. record quarter. year-ago by higher fourth operating primarily on and quarter versus driven year

the Melinda noted, La-Z-Boy now and grow our key I'll we larger of a a even a rate adjusting a week versus Joybird to of Other. As forward sales and our moments extra sales. company-owned network for becoming success. is year on Furniture spend the Vision, quarter segment growth $XX an long-term retail great record Joybird, quarter growing few a million, which & Galleries with continuing contributor increase Corporate of the is delivered prior XX% and XX% look in Century element to reported to delivered

Joybird the profitable For last quarter, growth quarter. gross margin an year's versus improved with fourth delivered

During metrics, written sales retail including positive the average sales business price. order store value exhibited and conversion, average multiple web traffic, Joybird quarter, the sales,

both Moving of acquisition relatively customer brand. and drive of non-GAAP sales to unavailability new to in year disproportionate by freight begin in we for was related awareness margin of raw XXX they company non-GAAP were parts, costs, fiscal partially leverage the and continue flow the will sales component all The plant all XXX costs fiscal growth gross consolidated marketing, through pricing surcharge offset year to actions half forward, on to of invest this the the and realized Consolidated capacity, for second and as primarily to to prior of sales. year the due the resulted which percent inefficiencies. digitally SG&A which costs versus year. challenges These through points, brand together, this Putting channels primarily increasing higher higher in deliver and backlog cost across basis for the increasingly the material decreased labor our manufacturing businesses. fixed entire decrease decreased young basis were as a the reflecting points volume

fiscal our was tax of XX.X% GAAP effect effective tax $X.X fair XXXX, value basis for of rate tax adjustment of Our XX.X% liability the fiscal the net from on was a fiscal effective rate consideration 'XX impacting benefit contingent versus for the related a in 'XX to tax acquisition. million Joybird

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

cash. Turning to

in returns investments For the with the year fiscal in cash, $XXX with finishing $XX ended QX. year, and We no cash activities, we debt, $XX enhance $XX 'XX million held generation in strong generated operating in to on million cash cash. million from million

year, disruptions inventory supply the sales. help During million delivery invested increased production and higher chain we protect against in and $XX levels to support

related technology new and upholstery capacity In retail shares, the $XX to facilities X.X market, million manufacturing projects. repurchasing capital store We year, shares at more QX, Mexico, back distribution plant manufacturing upgrades than spending in program. primarily our share million existing and authorized we during spent in also in the of XXX,XXX our to stock buy $XX million repurchase open shares in leaving upgrades, continue

million $X to the dividends, For $XX we the and quarter. returned via share fourth shareholders $XX paid including repurchase fiscal million in dividends million through year, full in

be to mind comparisons Melinda, XX-week fiscal me Please against fiscal let fiscal 'XX and be will items period. Before 'XX. XX-week turning year the 'XX call back a the important keep several that highlight for in will

containing affected, reflecting XX shutdown first be always, our weeks, production 'XX's July. one-week quarter Additionally, by in will annual comparability as fiscal

we to results and we service disruptions demand steady disproportionately long-term commitment driving impact geopolitical the agility, anticipate to stores. demand. on reduce to Furniture our chain may macroeconomic Galleries factors large progress, to outperform the 'XX during through maintain and better through our to value which strengthening confidence vary continuing working margin sell supply our highest navigate sales volatility, for products, fiscal our industry, we focused Despite demand and and furniture as While events consumer remain this our backlog

prudently growth. will against drive Century the We short longer in through to while environment term, the our profitable Vision strategy current navigate executing and

behind height industry furnishings home consumers revert purchases back we as of time us, to seasonality less months. spending normal pandemic to the the the expect focus With patterns summer return during the to and

fluctuating and As a QX lower than experience our as result, they sales during and consumer we will experience demand ago our direct-to-consumer likely customers, year businesses related and written inventory adjustments. both for QX wholesale

to are marketing our to in we delivery leverage As existing marketplace. for power improve strong demand beginning in backlog our the investments also continue and their we drive service increase to times, brands to

addition, receiving our which driven wholesale delivered decline sales delayed we segment a have in by to number expect In temporarily warehouse per a due customers, product constraints. slight week larger of in

in the factors expect these these to to $XXX We the of $XXX expect delays in to up first first X% quarter versus all XX% quarter we up delivered be to fiscal of for clear Taking 'XX 'XX fiscal sales million. into million range second consideration, now a quarter.

we consolidated non-GAAP to operating expect margin X.X% in X.X%. range to Additionally, be of a

million for non-GAAP we of consistent $XX for be adjustments range to to our charges are year strategy. purchase as expected the range for of we Company invest $X.XX Vision per Capital strengthen future, to be the in in with for share. the expenditures to expect the fiscal million accounting the to Century $X.XX 'XX $XX Finally,

year. allocation investments weighted to business to Century the in to other cost are And 'XX, strategic cash to our where This Vision strategy and term, the make of In shareholders invest to approximately split share as dividends Our and back half ROIs be the return anticipate including the more Xx term Melinda. given our flow vary capital numerous through repurchases. XX-XX I half is of in over investments we allocation and to operating fiscal to will the the long business any may heavily near capital turn now, call capital. execute have we Xx into

sell brands, company-owned team Century I'm La-Z-Boy execute excited the have strong Bob. We talented our and future great about segment place in to distribution, a very manufacture growing of Thanks and retail Incorporated. Vision. broad a and

facet future, environment driving and long on of the choppy Although we the foreseeable the focus can what through organization. term, is macroeconomic for and is the will remain every volatile our controlling agility

and strong this is sheet balance future. important move Our allow making in our investments period through while to uncertain will us

intention and We from best and come every profitable our back to and your have as growing I'll We you yet of growth for to the call new all long-term Kathy. thank base believe time turn to the we morning, is returns deliver this stakeholders.

Thank you, getting now. queue questions. Melinda. the the to We'll ask question-and-answer review begin please Jenny, into period the instructions for

Markets. now the questions. gentlemen, is from open and Ladies Brad to Capital of KeyBanc coming Instructions] [Operator Brad floor over question first is for Thomas Your you.

that, to of record the Sorry it quarter Good about and obviously, year I a was congratulations just first Company. a Kathy. and give strong morning, And for Bob all, muted. my wanted on

morning, Good Thank Brad. you.

questions a recent getting in of industry. the about trends lot We're

of give so to Melinda, had couple I a volatile I all, that on have so commented have detail far? you I hoping And been that. more more first any of June was late. how of Could questions trends trending and May you about us maybe been address believe But

or we backlog been end we decent to proposition to industry this now. years to to and as of a over down help on thing across have of we've of both to conversion the and that year lead on to tell couple I the the manage side at importantly, get cost we ability given see. any on last be on that what is our times service Yes. forward, the shorter that focused challenged month and first continues this look that since to on there's And things. traffic to working going impact drive the produce consumer amount we production the right continue week will traffic you be I mean volatility do

things traffic. the as three, a seeing no doubt, far four think, the that, entire overall, certainly last As the slowdown sentiment, there's driving over in a challenged. And consumer industry is is couple I of consumer, months

talked about certainly can we we from everything As more inflation there. into and and go some

don't of of know impact piece relative other these think I each The of is seasonality. the that the return we

we difference years getting that big is really for last couple spring a kind and several years, haven't So This spring the consumer all. were a quarter-to-quarter first are traveling had consumers the regular of in again, of summer. in People sentiment.

spring than the so And our always were if the of year. of pre-pandemic, kind significantly half you back and go back summer slower

have to the XX% seasonality furniture definitely some we again, it. keep And then the costs And mind pre-pandemic. is due to industry. all in of across that we were return of across to high, driving higher the pricing so of still We're XX% that quite those is are right, And industry. input than all

what four we're we we're to I own production up doing We said, consistent like Day. first furniture on about it, is quoting levels were our back for times pandemic. versus managing what Memorial that more better, have proposition shorter custom sure really XX XX the increasing marketing is lead We're spend we one to So making that, months. now to so seven and doing capacity over weeks with were

no store an then have also off two focused reason to because bring frustrated consumer then, into really there and lead was drive we in You'll recall, years, by urgency last really in-store them over them backed we're purchase execution. times. And the and significantly the to on

with doing that work the excellent stores. traffic while strong our remains conversion lighter, our is in So we're

that's So about. what talked we

traffic industry with across on think more the other. than now of I temporary the the that some consumer, right reality is challenged

our of on we're to what we're can of so, working is, the for control. have we consumer. a we course, the direct business, selling other Then And portion piece

than of BXB selling capacity. in business, a more our we're half For

sort the still adjusting little our of of healthy right now, their so, inventory And but on pull-through we're stock bit seeing customers side. a custom a

So that remains our well. focus as side on that

Or environment is performing that and constrained because Is the it that versus more be trends down La-Z-Boy? -- on up the we're are seeing in Melinda, Joybird in? that, follow a or is how it brand by better? might it's slowed terms DXC it to at of perhaps more customer what has And performing you more

Yes.

sort if high you trends maybe written was at teens our pre-pandemic continued industry if talk right, older, had mid-single at mature we what you -- for look and -- when fiscal for roughly, fourth slowing has across La-Z-Boy so written business we're positive ongoing. in low- or right, seeing think in written directionally. differential -- entire the We're the year, to trends we're some Joybird still furniture slower and of I about the quarter than significantly times, of to seeing look still the the on trend, but back used digits, it's average. the more stronger That

helpful. function delay hearing out turn receipt into you are this That's regard to of sales delay can having this starts of these have to the that very long wanted then what you before presume does from product, slowed orders to canceled And customers? that it down. they that their retail customers have a How is work? and I with larger How

And here, the been ahead ordered deliver term, and In to about ordering. the is But the their anywhere product to of near could, have down warehouse things to been suddenly, when last on a retailers filling warehouses, tell really X.X term, ability right? And more will some get in these trying the near and years you right, they've time got that deliver constraints think again, stock, in orders to spent slowing that's near that end -- where term. may as more matter it's up it's the their they from consumer. be in then, are through sold started they particular, really

been been flow -- getting more near the there. term near-term really, in right through and the just the product so effects And about have has

of another. have us could that consumers. a for might lot general as And much lot not a could be You one dealers from and different of from thing be that or of

gone this that. just to really the of consumer see that the as sort slowdown near-term get from managing to that thus been I about shifting shift very kind logistical seen much dramatic, the of majority we've the could consumer of everybody far and with anything we've more has a they So of for suddenly trying side

Anthony question is question. coming Your from next please ask Anthony, of Lebiedzinski your Sidoti.

So better any throughout get Was production the your delivered first, the of progressed? terms as wanted quarter? changes Or notable progress as consistent capacity, how sense in quarter own just there your the a revenue quarter gains. I did terms was in it to to of

fairly was slow a the It consistent as -- increase progressed. quarter

-- in latest Torreón slowly went and we last the coming quarter our capacity Our online, Mexico, was down allowing through. increase plant to us as was over that

quarter So well. the finished we

some making right maybe simple opportunity to some product for Mexico we've make our well in took like long we're quarter We the We training. fourth were the reposition about lines they product demand. to cells, making started sure time re-pointing for sure a -- talked as we're more as cells make to

as there progress the well. about good feel we so And

Yes. Got it.

your processes your plants. you the some So Melinda, changed you said remarks, in during of

what is referred So Or is there there to? as you well? that else something

Yes. sir. Yes

Got Okay. it.

kind inventories feel And would of on like lot traffic your about a Okay. your you given a and macro just have obviously, companies, and inventory, health you your so characterize the do of How just going then in terms with of the what's inventory increased. other health of of How inventory? concerns?

the We to come things of lockdowns that holding and over to are that on ended China We're fabric impact the and and in year that our the from some some parts with like wanted level of with. don't the going year that end the from what's delays the to China now given occurring we of right ensure inventory still production facilities.

I'm production side, And adjusting needed of finished being sure build that to. we're a up to generally as we'll of we're receipt moved timings. able made bunch being the able inventory whole we're don't speaking, a inventory customers The the higher we slightly ensure modify product goods continue is finished make product out, as and and side. on see maintain a to there as material that's inventory about their So, talking to we raw level from to inventory, make what

it. Got

that obviously, increases, so price have does fiscal as think you quarter, first end? within of you year a take? you include you provided gone increases the how may pricing quite that price yes, bit. we terms Or any up should taken in that you may has then since the additional pricing guidance additional And actions that Okay. -- for about the Are noted,

we pricing we actions Well, out take. future come never on

Part on We in accordingly that way continue others. to will through to took look it the will price maintaining materials QX. continue our raw coming and February, But The its and speaking, last and through going make what's QX working always work that's faster in to pricing generally we're and backlog. pricing is of working into margins. the through, of we its at way pricing sure is its way that with than

it. Got

Okay. lastly me. And for then

So you fiscal XX you 'XX. in stores will stated open that

think your this store is growth? we Or annual rate? plans a So how run new should about long-term for

even we we've stores. in like XXX. some see But quite of of given And in the about been cadence You'll because about opportunity now, talked Joybird construction our some delays. the XXX we're honestly, see hit year, variability at for don't about you'd -- happening you general, is it just in any has today, what it's so right stores, around that

that our Century So do period. -- and over time Vision we've said we'll

but there So, run number, any is rate not the given a be certainly some on ballpark bad XX year. volatility will

question. Your next Griffin Raymond Bobby Bobby, ask of is from James. your coming question

for Robby This on is Griffin. [indiscernible]

you end It backlog. year? bit the was to well at the First, year-over-year historic wanted even Can expectations your that about wholesale year. the continues a levels up for this fiscal to down backlog touch working trend I of talk above and little on just

down. Yes, I want it go to

there think to the you sold saying consumer it's written One, if to things what's I through backlog, product. have their I'll are well, that's all about end the backlog a are two start dissatisfied nice by there on the are in consumer the waiting way That -- that guess and so for is orders books. that to me, your backlog, orders backlog. our -- So in

been customized to in that's So four to have in historically, we our deliver been to to four weeks. six consumer And able seven months. products out end the

order custom real to Memorial since to consumer quote the XX a been end We focus Day weeks. that Memorial are with to as very pleased a XX able on we've Day, that

backlog real make that's thing. go will progress. So that's a good but down, That the

need with keep similarly, what then placed having us When orders other inventory. to on their backlog The in BXB that are, the put us production the to they're customers they months on out somewhat these most to for books six And we're is to six months believe going thing with orders. production, again, orders they have for in of the on part, ensure space. have stock they're that's backlog

and we're on if more As we only on need three out, months of efficient, more month we orders books. one get months month. three we out, and we're bring the only this capacity need one If

significantly, bring sort is minimal four- to kind more down that base, but that year very pre-pandemic backlog goal the of levels, this our six-week larger So manufacturing backlog mean would to ideally had historically, the of to which on we've throughputs. a

orders are orders years, as many coming how Now there's there's and multiple servicing. in are over are obviously recent -- many there talked we've variables how

that some I through we we'll as move volatility that so, on well And the expect as year. see

just a do build getting capacity? on we from much flexibility how much too your And follow-up out? capacity really That's helpful. current that, you protect have do How then Okay. with

along and overtime will a virtually way combination our to via reducing down, it that or as see manage that's we of single way one all demand we The that planning right we run is manage of every plants now. manage been if we being we've at go see the

there's this just plant, again, to shifts. that in right-size we plant plants try a work production attrition We the us to not the that at rehiring, production perspective And our just such allows that difficult have manual if natural a the also it's from the to drop time. choose in opportunity on to some because goes over reduce business,

So, working of so we're balance going are backlog. the orders down trying talked to try what seeing those again, out it we what employ well about, our production consistent with to balance we strategies from types as Melinda out incoming as -- to has that to

us you And of investments? Is lastly you a of those Perfect. content? existing increase additional Okay. mentioned advertising Can it investments just to developing function then Are content? guys beginning new through me, in walk you marketing. of for some

of bit A both.

it not to voice already. of spend our across as And choosing level we've some will. was the total a you as were that percent as record a sales, levels consumer called a long money where in of again while voice to mix. over then, frustration and share two world of pure a down, if was been backlog years, was, out of last we coming standpoint significantly exacerbate, still in in have the Again, the from share we So for at we kept a because

at as mentioned just of what back work volume, or back voice mix the we different. stage, being taking this we of marketing sheer pre-pandemic. our As my really reinvigorating as Vision the dramatically data in Century had share of forward, at that heading resonates like look comments, to consumer on the I The not, go kind and based focus and levels levels prepared the is kind content towards of and we consumer. with that we're But

You always La-Z-Boy very certainly, that marketing even about -- will the have aging in array product La-Z-Boy for La-Z-Boy talked the about And we them. just really a think recognize helping meaningful is that that the of go we about the consumer being way, the They consumer because don't people for. attributes mix, certainly way a down And think the work brand. part they a overall continue to they have the on in right how to brand when is consumer to is the always types we're we're -- a positive La-Z-Boy see of back reaching brand we're broad a of and shift content, that consumers. ensure over reaching in brand time the in

that of recognition. ensure brand, that database the course, there lot a within the disproportionately clear that's well. will work invest we've so quite that then, still young we we're continue a to story being to And of been brand grow to it's And telling Joybird that brand

Thank to hand over now queue. back no the I will further you to questions There in appear very be much. Kathy.

Thank you very much. Jenny. Thanks, everyone, for joining our morning. call this

any have Bye-bye. a me. questions, out to great reach you additional If day. Have please

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

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