La-Z-Boy Incorporated (NYSE:LZB) Q4 2017 Earnings Conference Call - Final Transcript

Jun 21, 2017 • 08:30 am ET


La-Z-Boy Incorporated (NYSE:LZB) Q4 2017 Earnings Conference Call - Final Transcript


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Greetings and welcome to the La-Z-Boy Fiscal 2017 Fourth Quarter and Full Year Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to Kathy Liebmann, Director of Investor Relations and Corporate Communications. Please go ahead, Ms. Liebmann.

Kathy Liebmann

Thank you, Rob. Good morning and thank you for joining us to discuss our fiscal 2017 fourth quarter and year-end results. With us today are Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer; and Mike Riccio, our Chief Financial Officer.

Kurt will begin today's call and then Mike will speak about the financials before turning the call back to Kurt for his concluding remarks. We will then open the call to questions.

A telephone replay of the call will be available for one week beginning this afternoon. Slides will accompany this presentation and are available for viewing through our webcast link.

These regular quarterly investor conference calls are one of La-Z-Boy's primary vehicles to communicate with investors about the company's current operations and future prospects.

(Forward-Looking Cautionary Statements).

And with that, let me turn over the call to Kurt Darrow, La-Z-Boy's Chairman, President, and Chief Executive Officer. Kurt?

Kurt Darrow

Thank you, Kathy and good morning everyone. Yesterday afternoon we reported our results for fiscal 2017 and the fourth quarter. We are pleased with the way we ended fiscal 2017.

Our fourth quarter delivered a strong finish to the year, reflecting the culmination of many strategic initiatives, gaining momentum, coupled with the efficiencies of our manufacturing platform.

Throughout the year, we continue to make strategic investments in the business to drive long-term growth. We increased the La-Z-Boy Furniture Galleries network as part of the 4-4-5 store build-out plan and acquired 14 La-Z-Boy Furniture Galleries stores from independent dealers, adding to the growth of our company-owned retail business.

We also purchased the La-Z-Boy wholesale business in the United Kingdom and Ireland, broke ground on a new innovation Center in Dayton, Tennessee, enhanced and invested in our digital platforms and introduced exciting new product.

And in March, we celebrated La-Z-Boy's 90th year in the business, an impressive milestone in our company's history. While we are proud to share many of the same attributes and values with those our founders established in 1927, over the span of almost a century, a lot has changed, providing our team with the best of both worlds as we honor our past and embrace the future.

With product innovation and a world-class global supply chain at our core, this powerful combination will carry us into the future and propel us into new areas to tap growth.

Before reviewing the quarter, I will run through a few highlights for full fiscal 2017 year. As a note, last year -- fiscal 2017 included 52 weeks versus fiscal 2016, which included 53 weeks, with the additional week occurring in the fourth quarter and resulting