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

Strategic transformation and growth

• Transitioning 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.

• Expansion of 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 performance.

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

• Strategic partnerships with multi-branded retailers and investments in brand revitalization, including recognition as a top five rebrand by Ad Age.

• Focus on omni-channel experience and leveraging in-home design services to drive higher average tickets and customer engagement.

Financial objectives and capital allocation

• Aiming to grow sales at twice the market rate and achieve double-digit operating margins long-term, with retail segment targeted for mid-teens margins.

• Margin improvement initiatives include consolidating distribution centers and exiting non-core businesses, expected to yield 75-100 basis points of enterprise improvement by fiscal year-end.

• Strong cash position with over $300 million on hand, no external debt, and a balanced capital allocation strategy: 50% reinvested in the business and 50% returned to shareholders via dividends and share repurchases.

• New store investments are not capital-intensive, typically requiring $1M-$1.5M upfront CapEx, with a three-year ramp to maturity and accretive returns by year three.

• Returns on capital for organic store growth and acquisitions are generally similar, both contributing to incremental consumer reach and profit.

Industry outlook and competitive positioning

• The furniture industry is highly fragmented and historically grows 3-4% annually, but recent years have been muted due to housing market challenges.

• Long-term industry growth is expected to rebound as housing turnover and affordability improve, with the company positioned to outpace peers when the market recovers.

• Competitive advantage lies in high-quality, customized, U.S.-based manufacturing and a vertically integrated, omni-channel retail model.

• Continued investment in people, technology, and supply chain agility to support future growth and maintain industry leadership.

• Recognized for employer excellence and brand strength by multiple third-party outlets.