On this page of StockholderLetter.com we present the latest annual shareholder letter from LA-Z-BOY INC — ticker symbol LZB. Reading current and past LZB letters to shareholders can bring important insights into the investment thesis.

 •  7/17/2024 Letter Continued (Full PDF)
 •  7/19/2023 LZB Stockholder Letter
 •  More "Home Furnishings & Furniture" Category Stockholder Letters
 •  LZB Benford's Law Stock Score = 71

LZB Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT

Annual Meeting
of Shareholders*
Tuesday, August 27, 2024     9:30 AM Eastern
Westin Detroit Metropolitan Airport
Wright Room     2501 Worldgateway Place     Detroit, MI
*Please see 2024 Proxy Statement for details
Ava Sectional | La-Z-Boy

Dear Stakeholders,
Our company was founded 97 years ago with a clear purpose of
bringing quality and comfort to people   s homes. Today, this consumerfirst approach and unrelenting commitment to producing high-quality,
comfortable furniture remains fundamental to how we work and continues
to propel our company forward. As we look to the future, we are building
on this strong legacy and our iconic La-Z-Boy brand, while taking
important actions that will make us even stronger for the next 100 years.
Fiscal 2024 was a dynamic year highlighted by solid execution and
strategic investments to further strengthen our enterprise while
navigating this uncertain economic environment. Industry dynamics
Melinda D. Whittington
La-Z-Boy Incorporated
President & CEO
remained volatile; however, we remain confident in our ability to
outperform the market, gain share, and grow margins over the long
term. We are delivering on our commitments, while making a difference
for our stakeholders. In this report, you will see why I am proud of the journey we are on, and why I am
confident in our future.
Fiscal 2024 Summary
Fiscal 2024 was a year defined by challenging trends for the furniture industry, as higher for longer interest
rates and weak housing turnover, near 30-year lows, negatively impacted store traffic. Despite these
headwinds, we made steady progress for the business.
Our continued focus on growth, profitability, and execution enabled us to outperform our industry. We
delivered sales of $2.05 billion and Non-GAAP operating margin of 7.8%. Amid this dynamic backdrop,
total La-Z-Boy Furniture Galleries   network same-store sales were down just 2%, while sales across the
industry were down 6%. In addition, we achieved strong cash flow, making it possible to reinvest in our
business and return $85 million to shareholders through share repurchases and dividends, including raising
our dividend by 10%.
While we expect the challenging industry dynamics to remain for the foreseeable future, we are managing
our business effectively and confident that in doing so, we are poised to benefit when underlying industry
tailwinds return.
Executing on Our Century Vision Strategy
We are also making considerable progress when it comes to executing our Century Vision strategy, which will
transform our company and position us for the next century. Through this strategy, we are playing offense,
with a robust set of initiatives designed to drive disproportionate growth of La-Z-Boy Incorporated over the
long term and enable us to consistently gain share in the fragmented furniture and home furnishings market.
Maddox Recliner | La-Z-Boy
Meyer Sofa | La-Z-Boy

Sales,
Operating Margin,
and EPS
$2,357
(53 Weeks)
$1,704
expand La-Z-Boy brand reach. I am pleased to report that we
are doing just that, with momentum in our business building.
Our Retail segment continues to grow with the opening of
$2,349
new stores, the acquisition of independently owned stores,
$2,047
$1,745
A core pillar of the Century Vision growth strategy is to
and by improving in-store fundamentals through strong
execution. We opened six new company-owned stores and
acquired eleven independent Furniture Galleries   during
$1,734
the year. Our direct-to-consumer business     supported by
our foundational manufacturing capability     now represents
over 50% of enterprise revenues for the first time in history.



2.14
7.8%
FY 2019

2.16
8.2%
2020*
Additionally, our company-owned store base of 187 locations
3.86
3.11
stands at 53% of total La-Z-Boy Furniture Galleries   and is

2.98
2.62
9.0%
2021
nearly double the number from a decade ago.
Our broader Wholesale business also continues to expand
into new channels and growth with existing partners. Our
9.5%
8.1%
2022
7.8%
2023
2024
refined channel strategy has allowed us to grow both our
footprint and our share of voice, with strategic partnerships
such as Rooms to Go. We believe there are considerable
opportunities ahead to expand our brand reach to a
Sales ($ in Millions)
broader consumer base and bring products like the beloved
Non-GAAP Operating Margin**
La-Z-Boy recliner into more homes.
Non-GAAP EPS**
*Fiscal 2020 reflects two months of dramatic impact from COVID-19
**See Reconciliation of GAAP to Non-GAAP Financial Measures at the
end of the narrative section
Since launching the Long Live the Lazy brand campaign
this past year, we have been successful in increasing
brand awareness, consideration, and purchase intent,
capturing the attention of a broader consumer base. And,
with a strong history of innovation, we are continuing to
accelerate our consumer-driven product development
process. We are responding to consumer needs, including
recently launching on-trend furniture styles and fabrics,
performance fabrics, and increased functionality like
additional storage and technology capabilities.
Looking across our broader portfolio, we made significant
progress toward sustainable, profitable growth for Joybird,
our digitally native brand. During the year we opened our
12th Joybird store and continue to focus on elevating the
brand to deliver a balance of sales growth and profitability.
And across the enterprise, we are increasing the agility of
our supply chain and making considerable productivity
improvements by optimizing our global network. We will
continue to evolve our supply chain to build increased resiliency.
La-Z-Boy Incorporated is well positioned to achieve our
Century Vision goals, including sales growth double the
industry and double-digit operating margins over the long
term. The combination of continued progress internally,
along with furniture industry demand improving back to a
more normalized growth trajectory, are key levers that will
further enable our success.
Bailey Sofa | England Furniture

Creating Value for All Stakeholders
Aligned with our core values, we empower courage for a
sustainable culture, embrace curiosity for sustainable design,
and operate with compassion for a sustainable planet.
During the past year, we implemented improved waste and
recycling programs across the enterprise and entered into
new agreements to source renewable energy for our sites.
We also elevated our focus on driving responsible wood
sourcing practices across the supply chain. And internally,
we continue our progress in strengthening our culture,
including expanding our powerful Employee Resource
Groups. We strive to provide an environment where
everyone can bring their best selves to work, because we
know our people are our greatest assets.
We   re also making a positive impact in the communities where
we live and work. Through our    Summer of Caring,       Season
Ainsley Sofa | Joybird
of Caring,    and    La-Z-Boy Cares Dollars for Doers    initiatives,
our employees have generously offered their time, skills, and
resources to keep our long-standing tradition of community
involvement alive. Our philanthropic initiatives include the
La-Z-Boy Foundation, local community involvement, disaster
relief, and Ronald McDonald House Charities.
It is this dedication and commitment to living our core values
that continues to earn us national recognition. Last year,
Capital Allocation:
Business Investments
And Returns To Shareholders*
($ in Millions)
La-Z-Boy Incorporated was recognized with Newsweek   s
   America   s Best Customer Service    award and ranked among
$245
Furniture Today   s    Best Places to Work in Furniture.   
In Closing
$49
Fiscal 2024 was another transformational year for La-Z-Boy
Incorporated. We enhanced our capabilities and improved
$184
our operations. Our solid financial results were a strong
$171
endorsement of the strategy that we have in place. We also
demonstrated that we can deliver strong results, even when
$44
$77
our environment is challenging. We are a stronger company
90%
today, but we know our work is not done. Looking ahead,
$77
the objective is clear. We must continue to focus on growth,
$126
$121
$7
improve agility, and leverage our strong financial position to
make prudent investments to drive capabilities and further
80%
$22
$107
$8
$54
$28
$38
I am excited for what lies ahead for this great company
and iconic brand. Thank you to our customers, consumers,
$25
$33
30%
$23
Incorporated is palpable and the best is still to come.
$43
$44
$30
$53
$23
2019
2020*
2021
2022
2023
20%
10%
$5
FY
50%
40%
$17
$91
trust you place in us every day. The momentum at La-Z-Boy
President and CEO
$69
$48
employees, shareholders, and Board of Directors for the
70%
60%
$46
enhance La-Z-Boy brand reach.
Melinda D. Whit tington
100%
2024
Share Repurchases
Dividends
Capital Expenditures
Cash Used for Acquisitions
% Business Investment
*Long-term strategy to invest ~50% of Operating Cash Flow
into the business and return ~50% to shareholders



 7/17/2024 Letter Continued (Full PDF)