La-Z-Boy (LZB) 20 Nov 242025 Q2 Earnings call transcript

Greetings. Welcome to the La-Z-Boy Fiscal 2025 Second Quarter Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mark Becks, Director of Investor Relations and Corporate Development of La-Z-Boy Incorporated.

You may begin.

Thank you, Holly. thanks quarter. us and fiscal discuss everyone, second XXXX morning, for to joining our Good today Melinda and through. us and to Officer; Luebke, With segment are and close Bob Chief President VP-Finance the Bob Lucian, Executive the and performance call, La-Z-Boy's will will and SVP Treasurer. Melinda CFO; and Taylor Whittington, and open La-Z-Boy speak Incorporated's midway financials

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

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

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

environment we pleased Yesterday, ended sluggish our Retail home and strong everyone. led with industry. second despite by challenging good market, furnishings furniture quarter. and Mark, following for the macro were continued morning, October a close segment results and our the We results Thanks, reported of

$X.XX, quarter the our segment Furniture of execution Day and of $X.XX, Century quarterly sales included iconic independent the company. Highlights of Galleries, quarter diluted headwinds, results. GAAP dividend new versus brand And second our X% La-Z-Boy including Labor prior led increase Furniture the progress growth of independent sales Our in year. against is the new second despite the dealer another La-Z-Boy for a Galleries opening to X%, network completing Furniture our and signing increased across of results, close million, sales our store acquire quarter, XX% independent Galleries for of an consecutive strategy, record and quarter. openings an $XXX expected and non-GAAP by our X-store to these third which during Midwest, Retail outstanding the and total EPS company-owned continued acquisitions up within these Vision X-store delivered X in La-Z-Boy consolidated agreement Florida grew and delivered acquisition driven by in

furniture beyond and and higher of industry and of our We're with with from guidance quarter are remains Furniture drive Home-related results backdrop. Consumers strategic wow half we our our uncertain year back our as Our of strategic high-quality sales mortgage spending both lack to outperform investments. The impact strong to on outcomes the an margin. impacted experience. can our build on and investments, consumer the rates in custom second outstanding comfortable, to consumer by and continues foundation benefit the towards And superior what for we non-GAAP demonstrates controlling against gravitating our this continue in optimistic our on shopping macroeconomic operating associates availability. exceeded we even affordability delivery. furniture industry positive build speed that the This be will and the housing progress execution fiscal a Galleries, and challenged. to

its with heritage these during performance consumers the brands consumer choosing La-Z-Boy are proof tough further strong trust our Incorporated apart. quality, they of and with comfort XXX-year stands that nearly times. delighting is However, And

historic of recovery to be recovery of timing certain, deferred. continues industry that more levels is momentum to While

However, share of fragmented home demand am and the that furniture I more consumer confident disproportionate capture positioned a than furnishings industry. in favorably we ever are to

the Furniture Labor the accelerated. to as Galleries execution conversion design to the versus same-store quarter, entire We with fiscal sales Century quarter, offense that once our sales traffic we across the in-store written sales Retail down Written furnishings just X% the improvement second Census furniture versus La-Z-Boy for the winning. Shifting year. also sales period period holidays, prior relative X% exclude year. Written last written was in were and sequentially company-owned key relative our during to second demonstrated which strength trends, an of strategy, same the versus furnishings and are our the superior as increasing stores second in forward-looking play same-store increased stores sales, X% X% stores, and continue And heightened U.S. during declined our by again, ticket subcategory of quarter, consumer company-owned home year-on-year average versus QX. Consistent our for benefit Vision measure. network newly to data, grew year's XXX acquired down segment, total the of prior around recent interest opened industry for same-store strongest trends driven Day Bureau our and sales X% within our sales quarter. segment rates, According last sundry led to year and the Retail with

September, our provide business focus. The the recent performance the reported as note, measure, and company's to on relevant items externally-sourced for our commentary furnishings portion most between which X% we includes provided August gap perspective like to furniture data, on furniture-only are not disparity which and furniture basis on September furniture of data, which Therefore, subcategories, both data, in with have perspective X the as us, focus results the for to to in the provided this consistent over sundry primary furniture months Bureau have measure. the the lag. widened quarters. in both and what X-month trailed is was that results X quarters, we additional past related previous the industry. August The furnishings measure have I'd and across of Bureau XXX Census as To Census the X And home, well widening well in down some furnishings our additional is as Given on home primary furniture, a of points. furnishings, all-in within

improved increased the Joybird to prior written year versus sales. year. quarter on Turning conversion the as Joybird ago a versus X%

our to the for the quarter strategic our XXX Century longer La-Z-Boy during the to term, for Vision future. setting operating is up I next This Incorporated line our and the by to is over celebrate long we term. first our century double consistent as double-digit Looking at plan pace Recall, XXXX. in market recap the want deliver margins enterprise years a strengthen our the progress to measured top grow framework,

to the brands grow business. are States, United to well-positioned continue largest furniture iconic of the our La-Z-Boy branded we in one As strategically

total supported North solutions which depth, both key We next us Galleries several network Furniture have manufacturing of La-Z-Boy personalized stores fully consistently XXX expanded the remain is track we allows to grow expanded approximately wide La-Z-Boy's of we the quality, reach pillar footprint, to X highest on-trend on fabric leather our to XXX offer brand stores, with by to options. A market Furniture our years. quarter reach variety and in ended Galleries and breadth a past bring our the the with over as American years, and network, which the products brand total

the expanding are network. we that Additionally, of company-owned portion

total of year, Our the now from XX Retail La-Z-Boy Furniture to prior XXX increased represents and segment has XX% stores, Galleries network. up

accretive Kansas; Topeka, entire X-store as X are an in and scheduled the independent quarter our We in quarter. Growing to stores margins. We're channel range Saskatoon, North company access provide dealer stores excited we to dealers brand the to strategy. an and more also is showing continue during acquisitions are up these share the X consumers allowing able new to acquire opened have Gallery our in Canada. Furthermore, network as through brand. control grow Fayetteville, is to insights. Florida growing refined broader from the integrated La-Z-Boy benefit Midwest, the our and in company-owned And to in Wholesale quarter, business profitability, store agreement of stores are we and sophisticated more to Carolina; Retail our in and develop recently immediately signed end-to-end the consumer we consumer important an we from close experience La-Z-Boy to Furniture major third with the additional acquired The a of La-Z-Boy the showrooms voice

Furniture beloved products to speed-to-market. Gardner-White floor looking furniture. Consumers with pleasure a Rooms Row, design on-trend like our regional and reinvigorated manufacturing, years at supporters in audience opened space. we us renovated the modern products introduced to insights our over for High partnerships merchandise styles. stakeholders and our and newly functionality La-Z-Boy North to company for reach key help a homes. are more strong Furniture are bring foundation Point We and of reclining demonstrated motion this and Go our with To national In partners It strategic customers more recliner into like the our retailers Our broader iconic of Slumberland, and our Market. was October, wholesale the industry's welcome and supply showroom and design our able particularly manufacture integration enable in that upholstery our with we more that motion consumer categories, streamlined core the American new And to us

"Long growth campaign, strategy Live La-Z-Boy A into brand Lazy" to over been brand launched Live X of the and August that year our campaign, share we delighted a consideration have is pillar by Vision purchase Another unaided period, little connected in the age National in appeal. years, our the we of core have XXXX average successful that to awareness, reach our increasing among and our which expand Lazy those also Long Day. on lowered have Century reflecting who consumer same broadening Lazy seen attempts La-Z-Boy. I'm over to the

Lazy activated During media National ESPN, Meta York Times our Pinterest. this Amazon, takeovers across with August year, we our second and Games, quarter New on second XX Day

media sales And the on satellite against solid to consumers. Joybird Sue delivered a resulted This optimizing to broadening and of Century achieve with to had Vision, promoting Long more thought Varma, where as existing in as trends Laziness. another influential of written growth of the the at mix. quarter and with to campaign, profitability. year are benefits drive we and tour the goal health quarter and efficient we a for also new continue both we performance profitable connecting impact brand continue positive our are and marketing of We we period. a pillar leader, operating the prior product Lazy well breakeven Live with comparable core Dr. focused a is get Joybird more as profits improving targeted as the balance with deliver had sales advertising

building the business in additional and believe have will to continue including a We capabilities, begun approach prospects growing there exploring a final supply of and chain foundational growth Joybird amount our of significant continue Vision. the to supply to Clearly, Century expansion. Strengthening implement likely disciplined global have more been, store a long-term disruption agile chains. to will our is pillar of be, and

strong We with manufacture the business will footprint. -- our comfortable, North design speed-to-market to of furniture well-positioned across customized our American our are and we foundation on

As macro we a environment continue year. remainder for the third challenging expect the enter quarter, fiscal we to our of

is Century filter trends impact disconnect remain Vision interest to will and through housing when and investing to rate ability outperform activity. benefit. we cuts while interest we In positively believe the eventually a about in While our mortgage market the Fed are continue rate long-term our there to recent poised disproportionately to correlate we economy ongoing business rates, by our between Fed rates, the so rebound, which that the optimistic reductions through meantime,

Bob's entire our as the as I be has earnings he Bob, Now, to want before of will and over CFO. call many last to him for know, recognize it you And turn thank I impact this fiscal La-Z-Boy leader at has his the and exceptional Incorporated. all him the of end me the an retirement strong our partner team. year. We a He at to best wish in made been for

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

Melinda, morning, everyone. good you, Thank and

X.X% in tables believe We As present the a a basis. press in business. performance reflects was of and volume the delivered year, million both to second call exclude decrease and we better a margin results million year margin points last conference due GAAP $XX a non-GAAP disruption the international on and second results X.X%, higher $X.XX GAAP a diluted basis, Wholesale appendix last by X% business EPS temporary non-GAAP demand import reflecting XX and versus was and X% detailed year's to driven was versus last diluted fiscal of versus operating also decline the GAAP quarter prior challenges Retail underlying $X.XX segment second presentation business. in Joybird million, our which increased customer our and the are goods trends in GAAP non-GAAP slides. On basis operating quarter operating quarter. consolidated operating was in items section margin was sales quarter. prior operating business. Consolidated reminder, the a $X.XX our Consolidated of Non-GAAP within significant case $X.XX $XXX non-GAAP our the release versus versus our year year. Non-GAAP for and EPS primarily was XXXX our margin in $XX

As I focus discussion, on Starting reporting, my specifically non-GAAP move with segment will Retail segment. unless otherwise. to comments here the our the stated from

second $XXX primarily million, delivered stores. due sales quarter, quarter, X% the were prior For growth the from acquired a year to over increase

XX.X% selling strong, our supporting year costs, in our year-over-year. Retail was by offset gross driven sales long-term was design all new growing versus through and mix. Importantly, This operating acquired in product improvements favorable non-GAAP Retail of stores, same-store margin by from quarter. expense an in a shift partially conversion and XX% sales ticket and business rates, and slightly strategy fixed prior increase margin remained the average improving lower resulting

business, delivered import want North by offset in for in cost a on business. I at flat the on operating by brand in Wholesale driven an demand non-GAAP lower our the international business last our and segment our million was This international La-Z-Boy as $XXX fixed margin margin business. Non-GAAP were Wholesale segment was For Retail year's quarter macroeconomic core sales spend our segment, Wholesale our improvement America sales the higher our partially challenges lower sales operating sales in quarter. X.X% international and casegoods Wholesale for Wholesale X.X% delivered for business. deleverage moment mostly to second versus in to offset

with I'm quarter, to furniture the last customer that we a report negatively excited September, a partnership impacting DFS, If disruption business. we leading recall, announced U.K. out in you temporary called this major retailer.

aligned and are Ireland, and has begin comfortable U.K. begun fourth the reach we and in-store partnership accelerate closely brands the where will to The quarter Our delivering DFS range DFS high-quality, this La-Z-Boy furniture of to is expect exclusive This fiscal. to an mission showrooms, online. in a of in the furniture. introduce of reclining product in sales

Joybird resulted prior performance from Joybird in $XX quarter For million, leverage Joybird, on up on higher gross reported in driven sales operating sales delivered breakeven higher XX% product margin Corporate margin operating saw improvement by versus margins, the stronger and for were Other, trends the year sales. mix year-over-year retail in cost This stores. favorable and fixed quarter.

Moving our for compared last disruption a Retail our in reduced quarter our XX Wholesale. has driven in versus points quarter. primarily business. Non-GAAP a structure up a our for basis international temporary quarter. shift due rate Gross margin Wholesale the same increased period mostly was positive gross primarily SG&A cost with by -- gross the towards segment shift to margin expansion lower than segment, consolidated casegoods Retail the fixed to sales performance and the which by mix increased margin gross percentage to by all the as segment, segments, of non-GAAP to which points reportable gross Wholesale higher the our due to a offset and in significant second leverage margins across slightly non-GAAP our carries year, consolidated higher SG&A mix margin fixed prior relative cost basis on XX year Consolidated segment, customer

largely compared prior the the basis second Our XX.X% effective to unchanged quarter rate on XX.X% year. tax at for was a GAAP for

expenditures $XX cash flow primarily from Furniture a debt. We was new and generated XX% the We activities in the operations operating cash comparable million La-Z-Boy year's remodels. including invested million, period. capital and from sheet, cash. no strong million quarter, Galleries, $XX up quarter cash funded from balance $XXX to $XX in ended externally last year-to-date, quarter, in Turning and related the in with million We to stores during

also during We the acquisitions period. $XX on million spent

share For to shareholders we $X the paid via $XX approximately million dividends. dividends in repurchases, returned million quarter, including and

quarter, subsequent the the leaves shareholders, last million quarterly same available has in of shares reflecting Additionally, quarter we which million X.X XXX,XXX existing returned the Year-to-date, by confidence finally, period been shares repurchase XX%. under our This repurchased to company's growth $XX authorization. the Directors double share year. And the to end, dividend share long-term in prospects, the increased our per $X.XX. regular Board to takes dividend approximately

our an use repurchases return a view as to dividend positive of share and We to attractive continue and shareholders. cash our

to back XX% repurchases over Our operating the to reinvest share term. of and in the approximately approximately capital return into allocation XX% long flow shareholders target and business cash dividends is

the items XXXX half of Melinda, to let for turning fiscal our the and third back important before several call me Now highlight quarter. back

by to fiscal housing continue industry growth Century long rates be operating performance sales consumer challenged backdrop, Looking normalized with by we the to mortgage forward, turnover. industry benefit similar market in higher and our more strategy, fiscal XXXX, the XXXX. Consistent demand, double continue our we driven that target the with the of term outperform expect Vision industry we continue double-digit to rates. to the low growth to margins over throughout expect to lower growth and Against rate

plants. generally quarter Third due second than periods lower at of sales downtime holiday quarter's multiple North to delivered the are America our

year. million, in operating we of quarter $XXX be range X% range the representing last to of $XXX expect in second X%. into recall non-GAAP million adverse some shifted third last the we account, quarter. expect events quarter we that fourth from Additionally, into the weather this quarter experienced in sales third winter which the to January to sales margin year, Taking delivered growth Further, versus

same-store continuing, environment, our from we Retail driven year, near-term margin sales pillar negative As the La-Z-Boy trends the acquisitions expect growing Galleries challenging demand by primarily compression which margin the from versus we prior Retail, continue our more Vision offset segment. than investment will of expected Furniture accretion in independent Century in

negatively by our margins be in start-up our new the will U.K. to the casegoods year. Additionally, impacted for continue of Wholesale of balance the the partnership with businesses and DFS

XX new continue the to La-Z-Boy XX year. stores We expect to to open Galleries for Furniture fiscal

our tax charges year range adjustments for to purchase range full the in expect to the XX.X%. fiscal be of share. anticipate We per in to the be for accounting to rate for XX.X% non-GAAP $X.XX year We $X.XX of the

building $XX be company of the the strengthen and land investments to This in to expect consistent of million network. expect Retail Vision as $XX And stores 'XX with macroeconomic trends, significant strategy. the to levels. range no in for includes with invest growth We at dollar million rate fiscal maintain expenditures to we the continue share repurchases to our we consistent capital continue in for pre-COVID worsening future, to amounts Century finally, our presuming

for very to transition. With It -- Melinda. and that, what month, will Vision January the last of realizing of will and he company this and announced be it fiscal a CFO known a and Finally, am Century positive I to Melinda. company our call a of effective company, year. has It I'll I'm has progress He privilege continue Taylor confident turn X was I've understanding has Taylor our for towards the the that financial with the and next. this the made be success. thorough store am in our lead very ceding retire is excited back on to I worked excited over with an deliver been will honor for Luebke, role to seamless I decade. proud and at end Vision of absolute and Century

our and industry. spite Taylor. and Bob, continue towards to the make Vision Century we goals backdrop, congratulations welcome the challenging to progress and outperforming Thanks, to industry you, achieving again In of

the entire company-owned remains segment, driving both rebounds. I'd expansion quarter our another our industry improving and La-Z-Boy on throughout Retail our focus yet business, our as and and at tactical like Our of growth of brand, agility team margin levels. for across execution efficiency outstanding to expansion now our and supply both congratulate chain strategic the our of driving

thanks and call a that, healthy back Finally, and to holiday joining wish turn season, the to like us I'd Mark. for you today. With all happy I'll

you, Thank Melinda.

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

James. [Operator Instructions] Your Bobby with from Griffin is first question Raymond for today

is I of get off I X a call, guess, I'm you got before last you X. since this and going little or Bob, fire I just make out your go. to bit sure about more

Thank you, Bobby.

your seriousness, next you in over meeting been in of you No, all working And I High over years. retirement. but fun congrats great here of working couple Point. Taylor, the you with years. It's see to to forward with last Look hope down at on couple the you Florida.

Likewise, Bobby.

maybe of side I So, just talk the transition going understand little we internationally. on I can about guess, bit some there's Wholesale first, a business? the

So, kind driver that on step the segment, year-over-year margins? short-term that when of I what and year-over-year much international transition was of we look deem of margins how would in difference that as at the in disruption of the down down EBIT step

that casegoods say I'd international as in moving roughly seeing SCS the to [ in -- DFS that from It about half between was impact with well we've saw the as roughly U.K. the half. impacts ] we been

out was usually way, Said for North spend positive America lot Yes. La-Z-Boy if of core that quarter. business talking margins a actually of on don't we you those time about, unique businesses our the sort another strip branded

they increase. been always positive, were but they've was positive, And and an there

correct. Yes, Yes.

Quarter-over-quarter.

core now? Is very manufacturer changes. margins, is plants? the in total doing of Okay. show believe, that on is we've XX some of we of La-Z-Boy the to the this manufacturing up we helpful. and growth improvement been starting that efficiencies That's know branded are basis a reflection the some once footprint points of done targeting, are I basis I to XX And that points work with

is. it Yes,

-- what fiscal are -- by, early goal 'XX? towards of to the, points points basis on by tracking guess, XX we that XX And basis we're Okay. tracking year I

Yes.

Perfect. Okay.

great your a Just about of of about -- year dealers, calendar dealers well. which view got Point of thinking just the kind the see the of were, to initial a maybe mood some see. from switching Can showroom orders, introductions Melinda, we High kind little. 'XX? you the little new was kind gears the talk What showroom, the new bit to products the Point of saw how we are of new as some High

were We that heard you say, a showroom, about our lot customers. pretty our that those and a importantly, buzz in Yes. dealers lot carry of from general as brands. excited we of the And

I think across I've across as the at think the and it's we're even is affordability turn industry, still we right? on -- not the the there availability of market, been since out improves, cautious, recovery consumer, industry, know yet. events and eventually a still I everyone while of industry multiple it be seeing lot will housing that

doing we So really management of customer like of consumer our and showroom, our there's history level this businesses, that really our our the planning were into then us, ongoing and North consumer, continues people and are we're additional making drove a safety of in financials pleased. Again, market things we're our the received in La-Z-Boy really and But messaging of our and back prudent all America also footprint -- that and positive having we experience particularly the just sure the of selling lot across these are experience tumultuous feedback. There's then products of a play that to. we that the a interest XXX-year listening somewhat and understanding prudently. the incredibly around to offering

and has commentary you've period. bit started more has leading of that of Anything of interesting from little out? -- a the seen calling it. -- towards in end period, had election, worth that's Retail it? on from or normal But election lot with customers holiday understand you and going it's the quarter. if post-election up a kind leveled during had Clearly, to just either just very the curious the the obviously, I noise orders a noise anything obviously, We or post short out returned something all the

obviously, quarter mean, super solid and I we're pleased said, this early we're as Yes. start. next you with another into

and us, go is that where the into things, into going that going the positioned details on for the get of we on many still be devil of in the the will -- able level air. where bumpy we where holidays, having at Certainly, to and about knowledge be a we're back think some super-excited I be consumer are holidays. side As in provides to the least we're just while. election noise just that's for to less system behind of

don't just but I to victory think declare yet. are is So, those think anybody going all I positives,

think and will we we selling seasons. can things what continue the piece control bigger I good going some about of here, we that to feel into of

Okay. call last And then, Melinda, one. maybe Notable breakeven. back out, to Joybird one

guys now have it bit. for a good You owned

been breakeven, Or it on, of of of it for with Is curious think growth phase? trending we've talking it? plan opportunity you kind game Just towards type before? the moving more investment back what for are brand, we about the accelerated is on that that to kind still the plan

Yes.

right positive pretty companies obviously, at a we out to to is do. good to and sales shuttering, when a time what Joybird, actually that it breakeven just be trends like work it have about are least But now, For feel in of achieving still balancing we that. lot

we're operating that now pleased with kind is the across We're how of we as strengthen what of of all the with phases even consumer and to that reaction Joybird, including brand the even we're end messaging what So, and discipline business. stand execution for does pleased the that our back business Joybird year. as why now we pursuing the are slow, but know sure stores we do accretive actively is, expansion start stores that's and pursuing have, look for we are thing a for to into those model, next to to across we consumer. One stores

back are and Joybird. still bumpy, growth Consumer we and So, easy. But that steady. will a be will in is into prudent. any mode again, It now doesn't more -- business it into slow be little make bit

on Okay. quarter. I the the details and appreciate congrats

same-store, down out looks X I lot of here, round we'll that you're a we peers. good versus think as written season see earnings very

So, congrats Bob, forward on performance. touch. on congrats again, look And that retirement and staying in to

question & Company. Lebiedzinski with next Your from Anthony is Sidoti

La-Z-Boy the with forward Bob, and your retirement upcoming and for of best Taylor, likewise, team. to And look you, rest working wishes the

Thanks, Anthony.

I So, guess, of first terms here. in question first, guess -- I my

Looking provided, your at if guidance the that as far high-end reported for down guidance, where is be for that as guidance QX. revenue that it margin were you from at of your you of margin looking at would that the QX, you -- -- high-end the still implies the the

mostly what's Or that what going is on driving is business? just in -- that? the else really So, casegoods

mentioned sales speed. term. getting them be with We I the as prepared well those to transition stores et quarter business, that rotation, casegoods It's DFS end the of We're remarks, long got the continued we've cetera. with it's margin that, into that all the probably until and to not into up and as get compression what won't rate in the at the there nearly we'll merchandising fourth because their get the hit continued

the that's that seeing a versus margin we're standpoint last from in year. QX compression biggest So

that I period bit that a little are always The also and other during thing, mentioned lower we just generally QX where many holidays our because plants have margins so are down. our

don't what so in to able that there. QX would there's non-disrupted if those, in have system we one historically So is slightly inefficiency just XXXX, see the probably we on you running if margin -- as of much, than I'll the QX you'd we're years, call not had ever we look -- plants just more in because always lower

-- your that? in business. given piece Okay. industry And the can increase important to continue think, you average piece, And is headwinds, ticket? do very obviously, you on while more average guys ticket a color increases talked critical the the design you guys for Can have and of provide also you then as a and far as

an that had well, million Yes. store. goal. a incredibly a goal X I aspirational was we years to And -- go always back to getting of ago, $X

X we're are really that those to of sure down making really our people that right furniture a and something you one in selling how also our store, wraps got right? is at into on -- X million into needs really get the the consumers, way can comes home, sure much It's compelling to how timely product, of to got doing looking making It's and the store the the sales absolute the a each sure to for around $X it it's in execution And store. your consumer experience. But then can't measure positive make the deliver associates of a Now meet messaging you've custom it we're things. places. around many the you design, making to in equipped weeks every right get basis. And you've and it's

using our do it we tough sales achieve I right time one is next make that is get across a and traffic have and industry still room that point in individual to as an sure So does that your one. And taken believe absolutely invest associates to making we're experience. sure each that we goals, to -- the they outstanding seeing set consumer done come find there they're really environment the go we is on, in the of because what slower an now. What even, opportunity just have

about add, and And think inspiration. I'd it's -- just discipline

on helping associate money us et the training, on make Melinda inspiration, the way continue process, increase that -- flip spend focus and allow on internally side, continue design design that cetera, grow. side, with those to their are that X said to side, us those ensure But things continuing what are their spending on we're things. and that have discipline better is and to remodels to On -- experience the much to will to the the there's other -- just consumer that deliver are stores that the will with there's sales we the operating

you. Got

from up it was then, inventory, And as year. Okay. your as last far X%

a think higher shape? drove you that would in expected. bit is What And good have we your do So than increase? inventory what

planned The inventory a increase. was increase

We or materials we that make as sure we're that to us, time customers able when order raw as time and to have from ensuring that the have get lot on need consumers of product spending them we been it that possible. turnaround get a quickly to

invested we've in that. So

as from bump QX ready the Year materials for New Our possible typically and in China on bit getting expectation we're into And in fast suppliers. little with level busy that see to We those coming and with with is this as of regional to season. our taken Chinese always we've QX, consumers will And them up Vietnam into the to shutdowns bit winning levels stock to this the a that sure on Tet we've for centers just the Year timing. product, season. we make then or in delivering due that a that New in-stock want a higher done little distribution going

for question next Your Thomas today is with KeyBanc. from Brad

on of I to you do tariff kind think industry. maybe you may model, seeing if at jump to if impact opportunities. the guess exposure it nice might of how next year? Could through topic. how in both new quarter, just environment have, all, P&L, help we the congrats on us First great about the and that how flows all, of results tariffs a for business much in Taylor, the still you Bob tough start

Yes, one. out. how now Obviously, I'll a will of lot that all take on uncertainty that play right

pretty the passed customer so business. industry, expectations and consumer generally For position that vast before. America have with U.S.-based, in are majority do some you cut-and-sew base and an when forth, there. Certainly, of us managed the our pretty the versus of operations costs the have of in puts spot part then of North into, here our products the majority an some we us that assembly That tariffs there manufactured, U.S., do given surcharges. vast the pretty a we're a Mexico. that to are through important And is and We We've U.S. our get through in good been our through out and end-consumer as our that's in Canada, tariff much that competition, good final versus in competition, and of those

the I we're we've with that. And some is that. so, agile I think well. experience positioned got But think relatively to key stay on overall, And

have partners. now? competitors backdrop volume really That's think, because think, Can about are, done levels the helpful. many working of thinking really struggling over you And manufacturing opportunity of job, more where with Melinda, wholesale year you're bit all that in talk your next your good I I how a about of little a a just right you out there

in last that year-on-year definitely It's I on dealer, particular, that us. those strong And like Yes. saw multi-brands our opportunity sell in quarter, general an you business. think retailers particularly came year-on-year for

X, are maybe regardless us, that And are sound financial business last couple by year folks that the base to North a this keep last with surety noisy talk word we strong cases, are things those flight a America vignettes, additional over building are or that are already their there's retailers forth. But with for again, so they on been doing so to many then haven't that One, of and are lot. spread We looking, of at seeing strategic really some that a So, play into definitely continue point, we to also, and high-quality. in top-of-mind play. maybe them expand that's the that where partnerships. Go, specific safety. And And a going looking talked not Galleries, to to our to in we shop. But the wants given consumer the us ideally, being and we're about advertise of kind reach that conversations product, for our that to some where compatible. And we footprint, and can folks with at La-Z-Boy they we've important going your that additional we we of that provide compatible of some saw very partners. those. base a on-trend, consumer added about Rooms market while Furniture of Row, lot distribution help we're Truly We've new reach Furniture our To right? build

a not it's sell. hard So

to try helpful. we'll last in Bob, you for question. here off and not you maybe, That's hook, rope let one And the

we you a think through earnings. you level to in be and all pretty as fiscal balance bit some and of sheet sales the cash the to balance, about forward? a about seem Can how the year appropriate about going have little cash have to balance you halfway talk your growing nice momentum think Just all seeing trough just

probably $XXX expect expect sheet. the to Longer we -- should from somewhere that a cash sheet the in with migrate business, shift time, customer on probably more those way. in million, on millions average. pre-COVID, business to balance Longer balance were we've that low-XXXs term, the have the million think of we we dollars on deposits $XXX Over more retail range we I of that range of the the term, our

also heavily capital and are Gallery then, in opportunities we're looking projects other investing We the stores. We've got for we're acquisitions. that always for Furniture new doing,

continue to So, we path combination how on spending cash the on repurchase year-over-year. down to level time, we generate business pretty glide a and some that of that healthy I over expect share flows spending will be operating while

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

our and a day. offices to Thanks, in Bob, Melinda, and questions. any Taylor have to follow-up Holly. be will great respond I Thanks,

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