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, and good morning, everyone, and thank you for joining us on our call this morning. Yesterday afternoon, we reported our fourth quarter and full year results for fiscal 2012. Before talking about the quarter specifically, I would like to take a moment to recap some of the highlights for the year. First, our growth initiatives. On a comparable 52-week basis, we increased our sales about 6%. As you will recall, fiscal 2011 was a 53-week year. For the year, same-store written sales for the 312 La-Z-Boy Furniture Galleries stores increased 9.4%. We developed and introduced a new concept store and opened 4 stores in that format. In total, across the La-Z-Boy Furniture Gallery network, we added 8 stores throughout the year and remodeled and relocated several others. We continued to move our company-owned retail segment towards profitability and improved our operating results by about 50%. We increased our market share, we maintained our focus on innovation and introduced compelling, stylish and on-trend products that were well received by our customers, and we announced a strategic agreement with Kuka Home, one of China's largest upholstery producers and retailers, to develop the La-Z-Boy brand in mainland China. On the operations side, our Mexico-based cut-and-sew facility is producing efficiently and we achieved our anticipated savings for the year. And with our lean journey permeating all facets of our operations and becoming a part of our corporate culture's DNA, our operations are running efficiently and continuing to reduce costs. And finally, on the financial side, we posted a 92% increase in our operating income. We eliminated our final consolidated VIE, we generated strong cash flows and we strengthened our balance sheet by increasing our cash and paying off our revolving line of credit.
All in all, a good year. Clearly, the strategic initiatives and changes implemented throughout the past 5-plus years have gained traction and are increasingly evident in our results. Moving forward, with our brand strength, quest for operational excellence and vast network of proprietary distribution, we remain focused on 3 key objectives: sales growth, making our Retail segment profitable and positive conversion on that volume growth.Now let me turn to a discussion of the fourth quarter. Our results for the period were impacted by a number of issues: The 13 versus 14-week comparison; a change in our effective tax rate; and $4.2 million in additional incentive compensation, which included a $1.6 million bonus to those employees who do not participate in the company's annual incentive program. We also had $2.6 million increase related to other incentive compensation, including both short-term and long-term stock compensation. As a reminder, last year's fourth quarter included a minimal level of compensation overall, and this year, because our results improved significantly, we felt it important to reward each employee throughout the organization as our performance is a credit to every one of them. Now on the wholesale side. Sales for the Upholstery segment increased 0.8% or about 8.5% on a comparable 13-week period. Mike will discuss the 53-week comparable year and the 14-week comparable quarter in a few minutes to help clarify any confusion that may exist with respect to the additional week in fiscal 2011. The operating margin for the period was 10.1%, demonstrating the efficiency of our operating structure across all 3 of our upholstery companies. As I mentioned a moment ago, our Mexican-based cut-and-sew facility is fully up to speed and is delivering the cost savings we anticipated. Read the rest of this transcript for free on seekingalpha.com