La-Z-Boy Inc (NYSE: LZB)

La-Z-Boy Inc is a leading global producer of reclining chairs and one of the largest manufacturers and distributors of residential furniture in the United States. The company operates in the furniture industry, offering a range of upholstery and casegoods products designed to furnish living and family rooms, bedrooms, and dining rooms. La-Z-Boy Inc generates revenue through the manufacture, marketing, import, export, distribution, and retail of upholstery furniture products under the La-Z-Boy, England, Kincaid, and Joybird tradenames. Additionally, the company imports, distributes, and retails accessories and casegoods (wood) furniture products under the Kincaid, American Drew, Hammary, and Joybird tradenames. The primary customer base includes furniture retailers or distributors in the United States, Canada, and approximately 50 other countries, including the United Kingdom, Australia, China, and New Zealand. The company also sells directly to consumers through retail stores that it owns and operates, as well as through its websites, www.la-z-boy.com and www.joybird.com.

• Retail Segment: This segment primarily sells upholstered furniture, in addition to some casegoods and other home furnishing accessories, to end consumers through company-owned La-Z-Boy Furniture Galleries stores. The segment leverages the La-Z-Boy brand to offer a full-service shopping experience with a large variety of products, knowledgeable sales associates, and design service consultants.

• Wholesale Segment: This segment manufactures and imports upholstered and casegoods (wood) furniture and sells directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, branded space locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers. The segment caters to both proprietary and independent dealers, providing a curated selection of La-Z-Boy branded products within larger independent dealers.

La-Z-Boy Inc holds a prominent position within the furniture industry, being one of the largest manufacturer/distributors of residential furniture in the United States. The company competes primarily on the basis of product styling and quality, comfort, customer service, price, and location. La-Z-Boy emphasizes its brand and the comfort, quality, styling, customization, value of its products, and available design services. The company remains committed to innovation while striving to provide outstanding customer service, exceptional dealer support, and efficient on-time delivery. Maintaining, updating, and expanding its proprietary distribution system is a key strategic initiative for La-Z-Boy in striving to remain competitive. The company operates in the mid to upper-mid price point, and a shift in consumer taste and trends to lower-priced products could negatively affect its competitive position. Additionally, La-Z-Boy's wholesale business faces increased market pressures from foreign manufacturers entering the United States market and increased direct purchases from foreign suppliers by large United States retailers.

The company sells directly to end consumers through its company-owned La-Z-Boy Furniture Galleries stores, small-format Joybird stores, and its websites, www.la-z-boy.com and www.joybird.com. Sales in the Wholesale segment are primarily to third-party furniture retailers, which also includes independently-owned La-Z-Boy Furniture Galleries stores. While mainly located throughout the United States and Canada, La-Z-Boy also has customers located in various other countries, including the United Kingdom, Australia, China, and New Zealand. The success of La-Z-Boy's product distribution model relies heavily on having retail floor space that is dedicated to displaying and marketing its products. Maintaining, updating, and, when appropriate, expanding its proprietary distribution network is a key part of the company's overall sales and marketing strategy.