La-Z-Boy Incorporated (NYSE:LZB) Q1 2018 Earnings Conference Call - Preliminary Transcript

Aug 23, 2017 • 08:30 am ET

Previous

La-Z-Boy Incorporated (NYSE:LZB) Q1 2018 Earnings Conference Call - Preliminary Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Sure, Kathy. (Operator Instructions) Thank you. Our first question is from the line of Budd Bugatch with Raymond James. Please proceed with your questions.

Analyst
Budd Bugatch

Good morning, Kurt. Good morning, Kathy. Good morning, Mike. Thank you for taking my questions. Just to make sure I understand in Note 14, and Mike your conversation on the investment gain, that's related to the new strategy. Is that correct? Just to be sure that I..

Executive
Kurt Darrow

Yes.

Analyst
Budd Bugatch

Okay. So it's part of the multi-faceted strategy that you talked about in the MD&A as well.

Executive
Kurt Darrow

Correct.

Analyst
Budd Bugatch

When do you think you're going to give us some update on that strategy and maybe put some more meat on the bones of what's happening and what we can expect?

Executive
Kurt Darrow

I think that depends, Budd on how fast things accelerate. We've been working on a lot of these things for the past year and are just getting to a point where there's some business opportunities that we feel good about and substantial enough to talk about it today. And also we are in discussions with Amazon, about Amazon marketplace, but don't have a final proposal that we're ready to go forward with yet.

So it could be a little bit a while before we put some numbers out there. We don't want to put out a number that we can substantiate or support, so as the business progresses and we have something substantial to talk about, we will certainly update our investors on those numbers.

Analyst
Budd Bugatch

Okay. And just talking about retail, the Company-owned retail, we've been now -- I think if my math is right five quarters, consecutive quarters, but we haven't been able to post comparable delivered sales -- positive delivered sales. What's going on there? When do you think we will start to see that turn? What kind of initiatives that we've got kind of -- get that positive end?

Executive
Kurt Darrow

Well, I think to start-off, Budd, I think for the last six months, if you take out the difference between the 13-week fourth quarter of this year and the 14-week quarter a year-ago, our average delivered sales has been down less than 1% for the last six months. And while we are not thrilled with that, I think in environment that we're in and in comparison to a lot of our peers, that is not a terrible performance.

We've done a lot on our design programs. We're doing a lot more on spending more time with each customer that comes in to the stores. We are doing a lot to enhance the website to get more traffic into the stores. So there is a lot going on. Our decline a year-ago at this time was in the mid-single digits and so we've brought it down from there, it's almost even sales, and we are working hard for the balance of year to get on the plus side of the ledger.

Analyst
Budd Bugatch

Is there anything of that -- do you think there is any advertising issue there? You spent a