La-Z-Boy (LZB) 47th Annual Raymond James Institutional Investor Conference summary

Strategic transformation and growth initiatives

• Pivoting from a manufacturing and wholesale legacy to a consumer-first, direct-to-consumer model, now representing about 50% of over $2 billion in sales, up from 25% a decade ago.

• Expanding company-owned retail stores, now owning over 60% of a 370+ store network, with a new target of up to 450 stores based on improved analytics and store performance.

• Recent acquisition of a 15-store network in the Southeast, the largest in company history, supports growth and vertical integration.

• Strategic partnerships with major retailers and a focus on omni-channel experience enhance brand reach and relevance.

• Brand revitalization efforts recognized by Ad Age as a top five rebrand, emphasizing quality, comfort, and customization.

Financial objectives and capital allocation

• Aiming to grow sales at twice the market rate and achieve double-digit operating margins long-term.

• Retail segment targeted for mid-teens margins through same-store sales growth, new store openings, and acquisitions.

• Wholesale segment margin improvement driven by exiting non-core businesses and consolidating distribution centers, expected to add up to 75 basis points.

• Strong cash position with over $300 million and no external debt; capital allocation split evenly between business reinvestment and shareholder returns.

• Shareholder returns include a dividend increased by over 10% for five consecutive years and ongoing share repurchases.

Store economics and expansion strategy

• New stores require $1–1.5 million in upfront CapEx, with a typical three-year ramp to maturity and accretive margins by year three.

• Enhanced analytics and real estate strategies have improved store performance, with average sales per store now near $5 million.

• In-Home Design services drive higher average tickets (3–4x), but are currently under-leveraged, representing a significant growth opportunity.

• Both organic store growth and acquisitions deliver similar strong returns on capital, expanding consumer reach and brand share.