La-Z-Boy Incorporated (NYSE:LZB) Q1 2021 Earnings Conference Call - Final Transcript

Aug 19, 2020 • 08:30 am ET


La-Z-Boy Incorporated (NYSE:LZB) Q1 2021 Earnings Conference Call - Final Transcript


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Good day and welcome to the La-Z-Boy Fiscal 2021 First Quarter Conference Call. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host for today, Ms. Kathy Liebmann. Ma'am, the floor is yours.

Kathy Liebmann

Thank you, Jess and good morning, everyone. Thank you for joining us to discuss our fiscal 2021 first quarter results. With us this morning are Kurt Darrow, La-Z-Boy's Chairman, President and CEO; and Melinda Whittington, CFO. Kurt will begin and close the call, and Melinda will speak to the financials midway through. We'll then open the call to questions. Slides will accompany this presentation and you may view them through our webcast link, which will be available for one year and a telephone replay of the call will be available for one week beginning this afternoon.

Before we begin the presentation, I'd like to remind you that some statements made in today's call include forward-looking statements about La-Z-Boy's future performance. Although we believe these statements to be reasonable, our actual results could differ materially. The most significant risk factors that could affect our future results are described in our Annual Report on Form 10-K. We encourage you to review those risk factors as well as other key information detailed in our SEC filings. Also our earnings release is available under the News and Events tab on the Investor Relations page of our website, and it includes reconciliations of certain non-GAAP measures, which are also included as an appendix at the end of our conference call deck.

With that, I'll turn over the call to Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer. Kurt?

Kurt L. Darrow

Thank you, Kathy and good morning, everyone. Following yesterday's close of market, we reported our fiscal 2021 first quarter results. While still in the midst of the COVID-19 pandemic, we are pleased with how our business is progressing with strong written order trends. To put the quarter in context, let me remind you of the pandemic related retail and plant closures and the subsequent ramp up timeline for La-Z-Boy. As a result of the pandemic, furniture retailers including our La-Z-Boy Furniture Gallery stores were closed for the tail end of March, all of April and most of May with some still closed in June depending on local guidelines.

Relatedly, the majority of our plants closed for four weeks and restarted in late April at reduced capacity. With our Joybird's Tijuana facility restarting about a month later due to COVID-19 challenges in Mexico. When we restarted our plants, we initially worked off the pre-pandemic backlog. We then had to wait for order flow as our retailers open throughout May and June and in concert with that, we increased production accordingly. But because of the lag from order entry, the written sale to building and delivering the product and recognizing the delivered sale, we essentially lost the majority of the month of May in terms of delivered sales as we expected when we commented last quarter.

We have continued