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La-Z-Boy Incorporated Management Discusses Q1 2013 Results - Earnings Call Transcript

Stocks in this article: LZB

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

Kurt L. Darrow

Thank you, Kathy. Good morning, everyone, and thanks for joining us for this morning on our call. Yesterday afternoon, we reported our first quarter results for fiscal 2013. We posted a 7.6% consolidated sales increase for the quarter, a 9.2% same-store written sales comp for the La-Z-Boy Furniture Galleries store system and a delivered sales comp of 17% in our own company-owned retail segment.

We also continue to improve the performance of our retail operation, narrowing its loss for the 14th consecutive quarter. And in addition to increasing sales in all 3 business segments during the quarter, we more than doubled our operating income, reflecting our ability to leverage our lean cost structure.

We are pleased with our results, particularly given the seasonality that impacts the industry during the summer months. And as we noted in June when we reported strong written orders for the fourth quarter, the pace of delivered sales in our upholstery and retail segments accelerated during the first quarter as the strong written orders from the past several months flowed through to our delivered sales this period.

As we move into the fall, which -- we believe we are well positioned to capitalize on what is typically a stronger selling season. Our marketing initiative is driving more qualified consumers to our stores and dealers. Our operating structure is lean, and we are in good service position with respect to fabric and leather inventory.

Importantly, we are using our financial stability and resources to invest in the business at all levels, including our increased marketing spend, our infrastructure, inventory levels, new stores, as well as remodeling stores, to continue to drive growth while keeping a keen focus on retail profitability and conversion on our additional volume.

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