La-Z-Boy (LZB) 47th Annual Raymond James Institutional Investor Conference summary

Strategic transformation and growth

• Transitioning from a manufacturing and wholesale legacy to a consumer-first, direct-to-consumer model, now representing about 50% of over $2 billion in sales, up from 25% a decade ago.

• Expansion of company-owned retail stores, now owning over 60% of a 370+ store network, with a new target of up to 450 stores based on improved analytics and store performance.

• Focus on vertical integration and omni-channel experience, leveraging consumer research and brand revitalization to enhance relevance and reach.

• Strategic partnerships with multi-branded retailers and investments in brand messaging, including recognition as a top five rebrand by Ad Age.

• Largest acquisition in company history recently completed, adding 15 stores in the Southeast.

Financial objectives and capital allocation

• Aiming to grow sales at twice the market rate and achieve double-digit operating margins long-term, with retail segment targeted for mid-teens margins.

• Multi-year distribution transformation consolidating 15 centers to 3 hubs, expected to improve wholesale margins by up to 75 basis points.

• Exiting non-core businesses and closing the U.K. manufacturing facility, with these initiatives expected to add 75-100 basis points to enterprise margins by fiscal year-end.

• Strong cash position with over $300 million and no external debt, deploying capital equally between business reinvestment and shareholder returns.

• Dividend increased by over 10% for five consecutive years, with ongoing share repurchases.

Store economics and expansion strategy

• New stores require $1M-$1.5M in upfront CapEx, with a typical three-year ramp to maturity; year one is break-even, year three is accretive.

• Average store sales have grown from $4M to nearly $5M, with improved real estate analytics and lease flexibility supporting expansion.

• In-Home Design services drive 3x-4x larger average tickets, but only 10% of customers currently use the service, indicating significant growth potential.

• Both organic store growth and acquisitions deliver similar strong returns on capital, with technology enabling simultaneous pursuit of both strategies.