La-Z-Boy Inc (LZB) 2024 Q2 法說會逐字稿

Greetings and welcome to the La-Z-Boy Fiscal 2024 second quarter conference call. (Operator Instructions) . I will now turn the conference over to your host, Mr. Mark Becks, Director of Investor Relations, and Corporate Development. You may begin.

歡迎參加 La-Z-Boy 2024 財年第二季電話會議。 （操作員說明）。現在我將會議交給東道主投資者關係和企業發展總監馬克貝克斯先生。你可以開始了。

Thank you, Jenny. Good morning, everyone, and thanks for joining us to discuss our fiscal 2024 second quarter. With us today are Melinda Whittington, La-Z-Boy's President and Chief Executive Officer, and Bob Lucien, La-Z-Boy's SVP and CFO. Melinda will open and close the call and Bob will speak to segment performance and the financials midway through.

謝謝你，珍妮。大家早安，感謝您加入我們討論 2024 財年第二季。今天與我們在一起的有 La-Z-Boy 總裁兼執行長 Melinda Whittington 和 La-Z-Boy 高級副總裁兼財務長 Bob Lucien。梅琳達將開始和結束電話會議，鮑勃將在中途談論部門業績和財務狀況。

We will then open the call to questions. Slides will accompany this presentation and you may view them through our webcast link, which will be available for one year, and a telephone replay of the call will be available for one week beginning this afternoon. Before we begin the presentation, I would like to remind you that some statements made in today's call include forward-looking statements about La-Z-Boy's future performance and other matters.

然後我們將開始提問。本簡報將附有幻燈片，您可以透過我們的網路廣播連結觀看它們，該連結的有效期為一年，從今天下午開始，電話重播將在一周內提供。在我們開始簡報之前，我想提醒您，今天的電話會議中所做的一些陳述包括有關 La-Z-Boy 未來業績和其他事項的前瞻性陳述。

Although we believe these statements to be reasonable, our actual results could differ materially. The most significant risk factors that could affect our future results are described in our annual report on Form 10-K. We encourage you to review these risk factors, as well as other key information detailed in our SEC filings.

儘管我們認為這些陳述是合理的，但我們的實際結果可能存在重大差異。我們的 10-K 表格年度報告中描述了可能影響我們未來業績的最重要的風險因素。我們鼓勵您查看這些風險因素以及我們向 SEC 提交的文件中詳細說明的其他關鍵資訊。

Also, our earnings release is available under the News and Events tab on the Investor Relations page of our website, and it includes reconciliations of certain non-GAAP measures, which are also included as an appendix at the end of our conference call slide deck.

此外，我們的收益發布可在我們網站投資者關係頁面的新聞和事件選項卡下查看，其中包括某些非公認會計原則措施的調節，這些措施也作為附錄包含在我們的電話會議幻燈片的末尾。

With that, I will now turn the call over to Melinda Whittington, La-Z-Boy's President and Chief Executive Officer. Melinda?

現在，我將把電話轉給 La-Z-Boy 總裁兼執行長 Melinda Whittington。梅琳達？

Thanks, Mark, and good morning, everyone. Yesterday, following the close of market, we reported results for our October-ended second quarter. We delivered sales in line with the high end of our guidance and non-GAAP operating margins exceeded guidance ranges issued last quarter, despite an increasingly challenging macro environment and continued soft home furnishings industry.

謝謝，馬克，大家早安。昨天收盤後，我們公佈了截至 10 月的第二季業績。儘管宏觀環境日益嚴峻，軟家居行業持續發展，但我們的銷售額符合我們指導的上限，非公認會計原則營業利潤率超出了上季度發布的指導範圍。

These results were achieved via strong execution in both our retail stores and across our manufacturing supply chain, which has led to continued market share gains. Highlights for the quarter included consolidated delivered sales of $511 million, up 14% versus our most recent pre-pandemic second quarter, but down 16% versus the prior year, as expected, which benefited from delivering the above-normal pandemic backlog.

這些成果是透過我們零售店和整個製造供應鏈的強大執行力實現的，這導致了市場份額的持續成長。本季的亮點包括綜合交付銷售額5.11 億美元，與最近的疫情爆發前第二季度相比增長14%，但與前一年相比下降16%，正如預期的那樣，這得益於交付高於正常水準的疫情積壓訂單。

Total La-Z-Boy Furniture Gallery's network written same-store sales growth of 1% positive and flat-written same-store sales for our company-owned retail stores. Non-GAAP gross margin improvement in both our retail and wholesale segments and total consolidated non-GAAP gross margin improvement of 340 basis points year-on-year. Non-GAAP operating margin of 7.9% above our guidance range, but down from a year ago, given deleveraged on the delivered sales decline. Non-GAAP EPS of $0.74 cents, a 30% decline from the same period last year, but 42% greater than pre-pandemic fiscal '20 and above our expectations.

La-Z-Boy Furniture Gallery 的網路同店銷售總額成長了 1%，我們公司擁有的零售店的同店銷售持平。我們的零售和批發部門的非 GAAP 毛利率均有所改善，且非 GAAP 綜合毛利率總額較去年同期提高了 340 個基點。非公認會計準則營業利潤率為 7.9%，高於我們的指導範圍，但由於已交付銷售額下降而進行了去槓桿化，因此較上年同期有所下降。非 GAAP 每股收益為 0.74 美分，比去年同期下降 30%，但比疫情前的 20 財年高出 42%，高於我們的預期。

The launch of our new brand campaign long lived the La-Z that has had early success with our expanded target consumer and is contributing to strong conversion levels and finally, continued progress against our Century Vision growth strategy, including the expansion of our retail business with the opening of two new stores and the acquisition of one independent La-Z-Boy Furniture Gallery store.

我們新品牌活動的推出使La-Z 長期存在，它在我們擴大的目標消費者中取得了早期成功，並有助於實現強勁的轉化水平，最後，我們的世紀願景增長戰略不斷取得進展，包括擴大我們的零售業務開設兩家新店並收購一家獨立的 La-Z-Boy Furniture Gallery 店。

Our company-owned retail store base now represents just over 50% of the entire La-Z-Boy Furniture Galleries network. The overall home furnishings industry is in a continued slowdown with year-over-year declines in category spending. Consumers continue to deemphasize discretionary spending on durables as they adjust to higher interest rates and housing turnover continues to decline on a year-over-year basis.

我們公司自有的零售店基地現在佔整個 La-Z-Boy Furniture Galleries 網路的 50% 以上。整個家居產業持續放緩，品類支出較去年同期下降。隨著利率上升，消費者繼續不再重視耐用品的可自由支配支出，而房屋成交量繼續同比下降。

Despite these challenging consumer traffic trends. Our La-Z-Boy Furniture Galleries network grew written same-store sales 1% and company-owned stores held same store sales flat versus year ago. With our ongoing efforts to build a more agile supply chain, along with disproportionately growing our retail business where we have greater control over the end and brand experience, we are positioning our business to continue driving profitable growth over the long term.

儘管消費者流量趨勢具有挑戰性。我們的 La-Z-Boy 家具畫廊網路的同店書面銷售額成長了 1%，公司自有商店的同店銷售額與去年同期持平。透過我們不斷努力建立更靈活的供應鏈，以及我們對終端和品牌體驗有更大控制力的零售業務的大幅增長，我們正在將我們的業務定位為繼續推動長期盈利增長。

La-Z-Boy has been a trusted brand throughout our nearly 100-year history, and we are occur encouraged with our progress, particularly given the challenges across the broader furniture industry. We continue to take a long-term approach to investing in our business and remain confident in our ability to drive performance that outpaces the industry. Additionally, should sales and traffic headwinds persist longer than anticipated. We have the proven ability to manage our cost structure.

在我們近 100 年的歷史中，La-Z-Boy 一直是一個值得信賴的品牌，我們對我們的進步感到鼓舞，特別是考慮到更廣泛的家具行業面臨的挑戰。我們繼續採取長期方法投資我們的業務，並對我們推動業績超越行業的能力充滿信心。此外，銷售和流量逆風是否持續時間比預期更長。我們有能力管理我們的成本結構。

And finally, our vertically integrated model and the disproportionate growth of our direct to consumer business, which now contributes nearly half of our total company sales, comes with a structurally higher margin, and will support continued investment into the business as well as improvements in profitability. Highlighting our ongoing top line trends, total written sales for our company-owned retail segment were up 3% versus last year's second quarter.

最後，我們的垂直整​​合模式和直接面向消費者業務的不成比例增長（目前占公司總銷售額的近一半）具有結構性更高的利潤率，並將支持對業務的持續投資以及盈利能力的提高。我們公司自營零售部門的總書面銷售額比去年第二季成長了 3%，這突顯了我們持續的收入趨勢。

This growth in written sales was attributed mainly to acquisitions of independent Furniture Gallery dealers in the quarter. Written same-store sales for our company-owned retail segment in the second quarter held essentially flat versus the prior year. Even in the challenging consumer environment along with the La-Z brand campaign has produced strong early results in driving more productive traffic to stores and in-store execution remains solid, with strong conversion and higher design sales. And we have sharpened some of our opening price points as raw materials and freight expenses normalize.

書面銷售額的成長主要歸因於本季收購獨立家具畫廊經銷商。第二季我們公司自營零售部門的同店銷售額與去年同期大致持平。即使在充滿挑戰的消費者環境中，La-Z 品牌活動也取得了強勁的早期成果，為商店帶來了更多的生產性客流量，並且店內執行仍然穩定，具有強勁的轉換率和更高的設計銷售額。隨著原料和運費的正常化，我們提高了一些開盤價。

Our written same-store sales were buoyed in August with strong Labor Day performance that weakened during the balance of the quarter as traffic trends slowed, particularly in October, consistent with our industry. That said, we have had a solid start to the holiday season in November. Against the backdrop of a 9% industry contraction during the second quarter. Our 3% increase in total written sales indicate continued market share gains, as noted across our entire La-Z-Boy Furniture Galleries network of 353 stores written same-store sales grew 1% for the quarter, even against this challenging backdrop.

我們的同店書面銷售在 8 月因勞動節表現強勁而得到提振，但在本季度的剩餘時間內由於客流量趨勢放緩（特別是在 10 月）而減弱，這與我們的行業一致。也就是說，我們在 11 月的假期季節中有了一個良好的開端。在第二季產業收縮9%的背景下。我們的總書面銷售額成長了3%，顯示市場佔有率持續成長，正如我們在整個La-Z-Boy Furniture Galleries 網路（由353 家商店組成的）中所指出的，即使在這種充滿挑戰的背景下，本季的同店銷售額仍成長了1%。

Turning to Joybird, written sales turned positive in the second quarter, up 5% versus a year ago, as we lapped a year ago Labor Day when Joybird trends fell significantly, consistent with most e-commerce furniture businesses, and exacerbated by short-term marketing execution issues. Our renewed marketing execution is now efficient and resonating with consumers to build brand awareness.

轉向Joybird，第二季度書面銷售額轉為正值，與去年同期相比增長5%，因為我們正值一年前的勞動節，當時Joybird 的趨勢大幅下滑，與大多數電子商務家具企業一致，並且短期內加劇了這一趨勢。行銷執行問題。我們新的行銷執行現在非常高效，能夠與消費者產生共鳴，從而建立品牌知名度。

And, while Joybird posted a small loss for the quarter as expected, the focus on managing both sales and profitability has led to a notable improvement in operating performance, and we remain optimistic about the prospects for the brand returning to both top and bottom-line growth over the medium term. I also want to take some time to discuss the long-term focus we have for our business and give an update on the progress we made against our Century Vision objectives during the quarter.

而且，雖然 Joybird 本季如預期出現小幅虧損，但對銷售和盈利能力的關注導致營運業績顯著改善，我們對該品牌恢復營收和利潤的前景仍然持樂觀態度中期增長。我也想花一些時間討論我們業務的長期重點，並介紹本季我們在實現世紀願景目標方面取得的最新進展。

Recall, Century Vision is our strategic framework for setting up La-Z-Boy, Incorporated for our next 100-years as we celebrate our first century in 2027. This is measured by our intention to grow top line at a pace double the market and deliver consistent double-digit operating margins over the long term.

回想一下，世紀願景是我們在2027 年慶祝成立第一個百年之際建立La-Z-Boy, Incorporated 的未來100 年的戰略框架。這是透過我們以兩倍於市場的速度增長收入的意圖來衡量的。長期維持兩位數的營運利潤率。

First, we continue to grow and update our La-Z-Boy Furniture Galleries network, and our company-owned retail portion of that network through new stores, acquired stores, and remodels to provide an outstanding end-to-end consumer experience. Company-owned stores now total 177, and for the first time in our history, represent just over half of our entire network, reflecting the impressive journey our retail business has been on over the last decade.

首先，我們透過新店、收購店和改造，繼續發展和更新我們的 La-Z-Boy 家具畫廊網絡以及該網絡中公司自有的零售部分，以提供出色的端到端消費者體驗。公司自營商店目前總數為 177 家，占我們整個網路的一半以上，這在我們歷史上還是第一次，反映出我們的零售業務在過去十年中取得的令人印象深刻的發展歷程。

We continue to see potential for up to 400 stores across the entire network in the intermediate term, a potential incremental 13% to our total network. During the quarter, we opened two new stores, and we completed the acquisition of one independent La-Z-Boy Furniture Gallery store in Lafayette, Louisiana. And in October, we signed an agreement to acquire an additional six-store network from an independent La-Z-Boy Furniture Galleries dealer in the Midwest, scheduled to close in our third quarter.

我們繼續認為，中期來看，整個網路有多達 400 家商店的潛力，這可能會使我們的整個網路增加 13%。本季度，我們開設了兩家新店，並完成了對路易斯安那州拉斐特一家獨立 La-Z-Boy Furniture Gallery 商店的收購。 10 月，我們簽署了一項協議，從中西部一家獨立的 La-Z-Boy Furniture Galleries 經銷商處收購額外的六家商店網絡，計劃於第三季度關閉。

As a reminder, these store acquisitions are immediately accreted to our profitability, and allow the company to benefit from the integrated wholesale retail margin. As we grow our company-owned retail, our vertically integrated supply chain will become a more meaningful differentiator versus competitors in the industry, as we are uniquely able to understand the consumer and then deliver custom furniture with strong speed to market.

提醒一下，這些商店收購會立即增加我們的獲利能力，並使公司從綜合批發零售利潤中受益。隨著我們自營零售業的發展，我們的垂直整​​合供應鏈將成為與行業競爭對手相比更有意義的差異化因素，因為我們擁有獨特的能力來了解消費者，然後以極快的速度將訂製家具推向市場。

We are actively leveraging the discipline of our team and the strength of our balance sheet to drive continuous improvements in offering greater value for our customers. These competitive advantages position us to continue to grow our business over the long term.

我們積極利用團隊的紀律和資產負債表的實力來推動持續改進，為客戶提供更大的價值。這些競爭優勢使我們能夠繼續長期發展我們的業務。

Second on Century Vision, we are refining our brand channel strategy to expand the distribution and availability of La-Z-Boy products in additional compatible outlets to meet our consumers with the right products wherever they prefer to shop. As one example, last quarter, we announced a new partnership with Rooms To Go, a top 10 furniture retailer with a focus on Southwest and Southeast US markets, with a selected assortment of La-Z-Boy recliners.

其次，在 Century Vision 方面，我們正在完善我們的品牌通路策略，以擴大 La-Z-Boy 產品在其他相容商店的分銷和供應，以便在消費者喜歡的任何地方為他們提供合適的產品。舉個例子，上個季度，我們宣布與Rooms To Go 建立新的合作夥伴關係，這是一家專注於美國西南部和東南部市場的十大家具零售商，提供精選的La-Z-Boy 躺椅系列。

While early, this partnership is off to a good start, and we look forward to reaching more consumers through strategic partnerships. Third, we're excited about the potential of our new Long Live the La-Z brand campaign. In the quarter, we activated a new marketing strategy, leveraging database consumer insights and our brand heritage of comfort and quality to connect with a broader consumer base.

雖然這項合作關係還處於早期階段，但已經有了一個良好的開端，我們期待透過策略夥伴關係接觸到更多消費者。第三，我們對新的 La-Z 萬歲品牌活動的潛力感到興奮。在本季度，我們啟動了一項新的行銷策略，利用資料庫消費者洞察以及我們舒適和品質的品牌傳統來與更廣泛的消費者群體建立聯繫。

Our goal is to build top-of-mind awareness, relevance, and updated perceptions of the brand. What makes us excited about our Long Live the La-Z brand campaign? It connects to cultural conversations and momentum, celebrating the value of earned rest and relaxation in our busy lifestyles. It reflects real life, lived-in rooms, and well-loved homes across a variety of situations, life stages, and homestyles in which people can see themselves.

我們的目標是建立品牌的首要意識、相關性和更新的認知。是什麼讓我們對 La-Z 萬歲品牌活動感到興奮？它與文化對話和動力聯繫在一起，頌揚在我們忙碌的生活方式中獲得的休息和放鬆的價值。它反映了現實生活、居住過的房間和人們喜愛的家庭，涵蓋了各種情況、人生階段和家居風格，人們可以在其中看到自己。

We leverage knowledge of consumers' rest and relaxation habits to connect, such as listening to music or a podcast, gaming, watching the news, or the big game. And we will show up consistently across all touchpoints on the consumer journey to build familiarity and trust.

我們利用對消費者休息和放鬆習慣的了解來建立聯繫，例如聽音樂或播客、玩遊戲、觀看新聞或大型遊戲。我們將在消費者旅程的所有接觸點上始終如一地出現，以建立熟悉度和信任度。

And next, Joybird. We continue to optimize Joybird to deliver a balance of sales growth and profitability. We view Joybird as an opportunity to increase our omnichannel presence for consumers. The brand continues to have significant opportunity to grow share, which will be our focus as we make prudent choices to return to profitability.

接下來是喬伊伯德。我們繼續優化 Joybird，以實現銷售成長和獲利能力的平衡。我們將 Joybird 視為增強我們對消費者的全通路影響力的機會。該品牌繼續擁有擴大份額的重大機會，這將是我們為恢復盈利而做出審慎選擇時的重點。

Joybird currently operates 12 stores, with the recent opening of a new store in Portland, Oregon. We have identified a total of 25 potential locations over the intermediate term, with our expansion pace depending on opportunities in real estate and the overall business environment.

Joybird 目前經營 12 家商店，最近在俄勒岡州波特蘭開設了一家新店。我們在中期總共確定了 25 個潛在地點，擴張速度取決於房地產機會和整體商業環境。

And finally, on Century Vision, we continue our progress on building a more agile business model. Now that we have been able to successfully lower our unprecedented backlog to a more normalized level, and are meaningfully improving plant productivity, we recently made decisions to further optimize our global supply chain.

最後，在世紀願景上，我們繼續在建立更敏捷的業務模式方面取得進展。既然我們已經能夠成功地將前所未有的積壓降到更正常的水平，並且正在有意義地提高工廠生產力，我們最近做出了進一步優化我們的全球供應鏈的決定。

As part of this initiative, we are shifting upholstery production from our Ramos, Mexico operations to our other existing upholstery plants, and then relocating a portion of our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Paris, Mexico.

作為該計劃的一部分，我們將把室內裝飾生產從墨西哥拉莫斯工廠轉移到其他現有的室內裝飾工廠，然後將部分裁剪和縫製工廠遷回墨西哥拉莫斯，從而永久關閉我們的租賃裁剪工廠並在墨西哥巴黎設有縫紉工廠。

Action taken to realign Mexico operations will be completed by the end of the fiscal, with benefits accruing in Fiscal '25. The strategic decision is made possible through continued productivity improvements achieved across our remaining plant network.

為調整墨西哥業務而採取的行動將在本財年結束前完成，並在 25 財年產生效益。這項戰略決策是透過我們剩餘工廠網路持續提高生產力來實現的。

Now let me turn the call over to Bob to review the financial results in more detail. Bob?

現在讓我將電話轉給鮑勃，以更詳細地審查財務業績。鮑伯？

Thank you, Melinda, and good morning, everyone. As a reminder, we present our results on both a GAAP and non-GAAP basis. We believe non-GAAP presentation better reflects underlying operating trends and performance of the business. Non-GAAP results exclude items which are detailed in our press release and in the tables in the appendix section of our conference call slides.

謝謝梅琳達，大家早安。提醒一下，我們在 GAAP 和非 GAAP 基礎上公佈我們的結果。我們相信非公認會計準則的陳述能更能反映基本的營運趨勢和業務績效。非 GAAP 結果不包括我們的新聞稿和電話會議投影片附錄部分的表格中詳細介紹的項目。

On a consolidated basis, fiscal '24 second quarter sales decreased 16% to $511 million versus the prior year quarter, primarily reflecting lower delivered unit volume versus last year's backlog shipments. This quarter's sales result represents a 14% increase versus the most recent non-pandemic second quarter. As a reminder, we previously called out that last fiscal year benefited by an approximately $300 million increase in delivered sales due to the delivery of backlog of COVID-related furniture orders, which will not repeat this year.

綜合來看，24 財年第二季的銷售額與去年同期相比下降了 16%，至 5.11 億美元，主要反映了與去年積壓出貨量相比交付單位數量的減少。本季的銷售業績與最近非疫情爆發的第二季相比增長了 14%。提醒一下，我們之前指出，由於新冠肺炎相關家具訂單積壓的交付，上一財年交付銷售額增加了約 3 億美元，今年不會再出現這種情況。

While we did not call out backlog explicitly across the quarters, the first half saw a more pronounced impact against backlog sales. As such, we expect year-over-year delivered sales comparisons to improve over the back half of the fiscal year. Consolidated GAAP operating income decreased to $34 million, and non-GAAP operating income was $41 million, a decrease of 34% versus last year's second quarter.

雖然我們沒有明確指出各季度的積壓情況，但上半年積壓銷售受到的影響更為明顯。因此，我們預計本財年後半段的年比交付銷售額將有所改善。綜合 GAAP 營業收入下降至 3,400 萬美元，非 GAAP 營業收入為 4,100 萬美元，比去年第二季下降 34%。

Consolidated GAAP operating margin was 6.6%, and non-GAAP operating margin was 7.9%, reflecting a 210 basis point decline versus last year due to fixed cost de-leverage on lower delivered sales. GAAP diluted EPS was $0.63 for the second quarter versus $1.07 in the prior year quarter. GAAP diluted EPS was $0.74 in the current year quarter versus $1.05 last year. As I move to the segment discussion, my comments from here will focus on our non-GAAP reporting unless specifically stated otherwise.

綜合 GAAP 營業利潤率為 6.6%，非 GAAP 營業利潤率為 7.9%，較去年下降 210 個基點，原因是固定成本去槓桿化導致已交付銷售額下降。第二季 GAAP 攤薄後每股收益為 0.63 美元，去年同期為 1.07 美元。本季 GAAP 攤薄後每股收益為 0.74 美元，去年同期為 1.05 美元。當我進入分部討論時，除非另有明確說明，否則我的評論將集中在我們的非公認會計準則報告上。

Starting with the retail segment for the quarter, delivered sales were $214 million, a 15% decrease over the prior year's second quarter, which benefited from higher deliveries of backlog. Importantly, sales were 44% higher than our fiscal 2020 second quarter, a 10% compound annual growth rate improvement over the four years. Retail non-GAAP operating margin decreased to 13% versus 16.5% in the prior year quarter.

從本季的零售部門開始，交付銷售額為 2.14 億美元，比去年第二季下降 15%，這得益於積壓交付量的增加。重要的是，銷售額比 2020 財年第二季高出 44%，四年複合年增長率提高了 10%。零售業非 GAAP 營業利潤率下降至 13%，去年同期為 16.5%。

Gross margin improvements from prior period pricing actions were more than offset by higher SG&A as a percentage of sales, with fixed cost de-leverage on the lower delivered sales volume. This non-GAAP operating margin result was 720 basis points higher than fiscal 2020 second quarter pre-pandemic result, reflecting significant sustainable improvement in store execution and fixed cost leverage due to the overall growth of the retail business.

前期定價行動帶來的毛利率改善被銷售費用佔銷售額百分比的上升以及固定成本去槓桿化對交付銷售下降的影響所抵消。這項非公認會計準則營業利潤率結果比 2020 財年第二季疫情前的結果高出 720 個基點，反映出零售業務的整體成長導致商店執行和固定成本槓桿率顯著可持續改善。

For our wholesale segment, delivered sales for the quarter declined to $365 million, an 18% decrease versus the prior year period, which benefited from pandemic backlog production and deliveries. Non-GAAP operating margin for the wholesale segment was 7.7% versus 8.6% in last year's second quarter, reflecting strong gross margin improvement, more than offset by SG&A de-leverage on lower sales.

對於我們的批發部門，本季的交付銷售額下降至 3.65 億美元，比去年同期下降 18%，這得益於大流行病積壓的生產和交付。批發部門的非公認會計準則營業利潤率為7.7%，而去年第二季為8.6%，反映出毛利率的強勁改善，但被銷售下降導致的銷售管理、行政管理(SG&A) 去槓桿化所抵消。

Gross margin improved with benefits from lower raw material pricing and duty expense. This was more than offset by fixed cost de-leverage and increased marketing investments to support the launch of our Long Live the La-Z brand campaign. Joybird reported in corporate and other recorded delivered sales of $32 million, a 15% decrease versus the prior year quarter.

得益於原物料價格和關稅費用下降，毛利率有所改善。這被固定成本去槓桿化和增加的行銷投資所抵消，以支持我們推出「Long Live the La-Z」品牌活動。 Joybird 公佈的企業和其他記錄交付銷售額為 3,200 萬美元，比去年同期下降 15%。

The decline was driven by lower unit volume from more cautious consumer demand compared to earlier in the prior year. Additionally, we recently opened our 12 Joybird store in Portland, Oregon in November. We remain committed to growing the brand over the longer term and will continue to maintain our disciplined approach as we work to balance growth and profitability.

與去年稍早相比，消費者需求更加謹慎，導致單位銷售下降，導致了這一下降。此外，我們最近於 11 月在俄勒岡州波特蘭開設了第 12 家 Joybird 商店。我們仍然致力於長期發展品牌，並將繼續保持嚴格的方法，努力平衡成長和獲利能力。

Pulling all this together for the quarter, consolidated non-GAAP gross margin improved across all businesses and for the entire company improved by 340 basis points versus the prior year second quarter, primarily due to lower raw material and duty costs, partially offset by selective pricing and promotional actions. While SG&A non-GAAP expense dollars decreased year over year, non-GAAP SG&A as a percentage of sales for the second quarter increased by 550 basis points compared with the same period last year, primarily due to sales de-leverage against last year's backlog-driven top-line results.

綜合本季的所有這些因素，所有業務和整個公司的綜合非公認會計原則毛利率均比去年第二季度提高了 340 個基點，這主要是由於原材料和關稅成本下降，部分被選擇性定價所抵消和促銷活動。雖然 SG&A 非 GAAP 費用同比下降，但第二季度非 GAAP SG&A 佔銷售額的百分比與去年同期相比增加了 550 個基點，這主要是由於針對去年積壓的銷售去槓桿化。推動營收結果。

Our effective tax rate on a GAAP basis for the second quarter was 26.5% compared to the 25.8% for the prior year period. Our effective tax rate varies from the 21% federal statutory rate, primarily due to state taxes. We expect our effective tax rate to be in the range of 26% to 27% for fiscal '24. Turning to cash, for the quarter we generated $31 million in cash from operating activities. Solid cash generation in the quarter was primarily driven by profit performance.

我們第二季以 GAAP 計算的有效稅率為 26.5%，而去年同期為 25.8%。我們的有效稅率與 21% 的聯邦法定稅率有所不同，這主要是由於州稅所致。我們預計 24 財年的有效稅率將在 26% 至 27% 之間。說到現金，本季我們透過經營活動產生了 3,100 萬美元的現金。本季穩健的現金產生主要是由利潤表現推動的。

Through the first two quarters, cash flow from operations was $57 million, 84% higher than last year's comparable period. We ended the quarter with $333 million in cash and no externally funded debt. We spent $13 million in capital expenditures during the quarter, primarily related to retail store openings and remodels, as well as upgrades in our manufacturing and distribution facilities.

前兩個季度，營運現金流為 5,700 萬美元，比去年同期成長 84%。本季結束時，我們擁有 3.33 億美元現金，沒有外部融資債務。本季我們花了 1300 萬美元的資本支出，主要與零售店開業和改造以及製造和分銷設施的升級有關。

We also spent $2 million on the acquisition of one independent Lazy Boy Furniture Gallery store in Lafayette, Louisiana. In the second quarter, we returned $18 million to shareholders, including $8 million paid in dividends. We repurchased 326,000 shares in the quarter, which leaves 6.6 million shares available under our existing share repurchase authorization.

我們還斥資 200 萬美元收購了位於路易斯安那州拉斐特的一家獨立的 Lazy Boy Furniture Gallery 商店。第二季度，我們向股東返還 1,800 萬美元，其中包括 800 萬美元的股息。我們在本季回購了 326,000 股股票，根據我們現有的股票回購授權，還剩 660 萬股可用。

Subsequent to quarter end, reflecting the confidence in the company's long-term growth prospects, the Board of Directors increased the regular quarterly dividend by 10%. This takes our quarterly dividend to $0.20 per share. We view share repurchases and our dividend as an attractive use of our cash and positive return to shareholders. Recall our capital allocation strategy is to invest approximately 50% of operating cash flow back into the business with a balanced return to shareholders.

季度末後，董事會將定期季度股息增加 10%，反映了對公司長期成長前景的信心。這使我們的季度股息達到每股 0.20 美元。我們認為股票回購和股息是對我們現金和股東積極回報的一種有吸引力的用途。回想一下，我們的資本配置策略是將約 50% 的營運現金流投資回企業，並為股東帶來平衡的回報。

In the near term, we have numerous strategic investments to make as we execute Century Vision and anticipate capital allocation to be more heavily weighted to investments in the business, where our ROIs are two times our cost of capital.

短期內，我們在執行世紀願景時需要進行大量策略性投資，並預期資本配置將更加重視業務投資，我們的投資報酬率是資本成本的兩倍。

Before turning the call back to Melinda, let me highlight several important items for fiscal '2024 and our third quarter. Consistent with our central vision strategy-- Century Vision strategy, we continue to target sales growth, double the industry growth rate, and double-digit operating margins over the long term. We expect sales in the third quarter of fiscal 2024 to be in the range of $515 million to $535 million and non-GAAP operating margin to be in the range of 7% to 8%.

在打電話給梅琳達之前，讓我強調一下 2024 財年和第三季的幾個重要事項。與我們的中心願景策略—世紀願景策略一致，我們繼續以銷售成長為目標，將產業成長率翻倍，並長期實現兩位數的營業利潤率。我們預計 2024 財年第三季的銷售額將在 5.15 億美元至 5.35 億美元之間，非 GAAP 營業利潤率將在 7% 至 8% 之間。

We anticipate non-GAAP adjustments for purchase accounting charges for the year to be in the range of $0.01 to $0.03 per share. We expect capital expenditures to be in the range of $60 million to $70 million for fiscal 2024. As we invest to strengthen the company for the future, consistent with our Century Vision strategy. And finally, presuming no significant worsening in macroeconomic trends, we expect to continue share repurchases at dollar levels consistent with pre-COVID repurchase activity.

我們預計今年採購會計費用的非 GAAP 調整將在每股 0.01 美元至 0.03 美元之間。我們預計 2024 財年的資本支出將在 6,000 萬至 7,000 萬美元之間。我們的投資是為了增強公司的未來實力，這與我們的世紀願景策略一致。最後，假設宏觀經濟趨勢沒有顯著惡化，我們預期將繼續以與新冠疫情前回購活動一致的美元水準進行股票回購。

And now I will turn the call back to Melinda.

現在我將把電話轉回給梅琳達。

Thanks, Bob. We delivered on our objectives in the quarter with many wins, including a new brand campaign launch, positive written same-store sales, sequential improvement in our delivered sales results, and growth in our company-owned retail store base, which is now just over 50% of our total network. We are engaging with an even broader consumer than we have in the past.

謝謝，鮑伯。我們在本季度實現了我們的目標，取得了許多勝利，包括新品牌活動的推出、積極的同店銷售、我們交付的銷售業績的連續改善以及我們公司擁有的零售店基礎的增長，現在剛剛結束佔我們整個網路的50%。我們正在接觸比過去更廣泛的消費者。

And although the macroeconomic environment remains challenging, we will continue to focus on driving our business, focusing on the consumer, and continuously improving our execution. We have every intention of growing from our post-COVID base, gaining share, and believe the best is yet to come as we deliver long-term profitable growth and returns to all stakeholders.

儘管宏觀經濟環境仍然充滿挑戰，但我們將繼續專注於推動我們的業務，專注於消費者，並不斷提高我們的執行力。我們完全有意願在新冠疫情過後的基礎上實現增長，獲得份額，並相信最好的尚未到來，因為我們將實現長期盈利增長並為所有利益相關者帶來回報。

I want to thank the entire La-Z-Boy Incorporated team for their ongoing dedication and for yet another quarter of strong results, even in a challenging environment. I wish you all a happy and healthy holiday season. Thank you for your time this morning.

我要感謝整個 La-Z-Boy Incorporated 團隊的持續奉獻，以及即使在充滿挑戰的環境下又取得了強勁業績的季度業績。祝大家節日快樂、身體健康。感謝您今天早上抽出時間。

And with that, I'll turn it back to Mark.

說到這裡，我會把它轉回給馬克。

Thank you, Melinda. We will begin the question and answer period now. Jenny, please review the instructions for getting in the queue to ask questions.

謝謝你，梅琳達。我們現在開始問答環節。珍妮，請查看排隊提問的說明。

Thank you very much, Mark. (Operator Instructions)

非常感謝你，馬克。 （操作員說明）

Okay. Our first question is coming from Brad Thomas of KeyBanc Capital Market. Brad, your line is live.

好的。我們的第一個問題來自 KeyBanc Capital Market 的 Brad Thomas。布拉德，您的線路已上線。

Yeah, hi. Good morning, and congratulations on a good quarter here.

是的，嗨。早上好，恭喜本季表現良好。

Good morning.

早安.

Melinda, first, I was-- yeah, yeah, thank you. Good morning. First, I just want to kick off with, you know, the strong performance, particularly relative to the industry and what you're seeing on the written front. And maybe this is kind of two parts. I mean, first, I was hoping you could just talk a little bit more about, you know, your own network and what you think is best driving, you know, results.

梅琳達，首先，我是——是的，是的，謝謝。早安.首先，我只想從強勁的表現開始，尤其是相對於產業和你在書面上看到的表現。也許這是兩個部分。我的意思是，首先，我希望你能多談談你自己的網路以及你認為最好的駕駛結果。

And then maybe if you could also speak to, you know, some of the wins that you've had within third parties and how much of this is just your own execution versus perhaps some of the bankruptcies that have been reported in the industry and the disappearance of competitors.

然後，也許您也可以談談您在第三方中取得的一些勝利，以及其中有多少只是您自己的執行，而不是行業和行業中報道的一些破產案例。競爭對手的消失。

Yeah, a couple of thoughts there. You know, first of all, within our furniture galleries, and particularly our company-owned furniture galleries, we've been on a really strong execution march for quite a few quarters now where with the traffic that is coming in the door what we're doing in the way of design sales, in the way of conversion rates of average tickets, it's the blocking and tackling, we just continue to get better there in very data-based but blocking and tackling ways, and that trajectory continues.

是的，有一些想法。你知道，首先，在我們的家具畫廊，特別是我們公司擁有的家具畫廊，我們已經在好幾個季度裡進行了非常強大的執行力，現在隨著門口的人流湧入，我們的我們正在以設計銷售的方式進行，以平均門票的轉換率的方式進行，這就是阻塞和處理，我們只是以非常基於數據但阻塞和處理的方式繼續做得更好，並且這種軌跡仍在繼續。

The second thing is the power of the brand, and we do believe, you know, along with the La-Z Campaign has begun to affect that and will continue to get stronger over time. Obviously, long purchase cycles, and so, that's a long process, but we believe that the consumer coming in is excited about the La-Z -Boy brand and is ready to buy. And that kind of speaks to that whole brand campaign is, again, very data-based around speaking to a broader set of consumers than in the past, but consumers that are really going to resonate with our brand's quality and comfort that we've been known for almost 100 years.

第二件事是品牌的力量，我們確實相信，你知道，隨著 La-Z 活動已經開始影響這一點，並將隨著時間的推移繼續變得更強大。顯然，購買週期長，所以這是一個漫長的過程，但我們相信，進來的消費者對 La-Z -Boy 品牌感到興奮，並準備購買。這說明整個品牌活動再次以數據為基礎，與比過去更廣泛的消費者進行交流，但真正會對我們品牌的品質和舒適度產生共鳴的消費者聞名近 100 年。

And then, you know, last but not least, to your point on, you know, they're definitely it's a tough industry out there, and in our highly fragmented market, there's been a decent number of both manufacturers and retailers that are leaving the business, and so we're opportunistic about that, right? And even across some of our not just our La-Z- Boy brand, but across some of our other smaller brands, we're making sure that we're mobilizing to help retailers that have lost some of their supply sources as manufacturers have gone out.

然後，你知道，最後但並非最不重要的一點是，就你的觀點而言，你知道，這絕對是一個艱難的行業，在我們高度分散的市場中，有相當多的製造商和零售商都在離開業務，所以我們對此持機會主義態度，對吧？即使在我們的一些 La-Z-Boy 品牌中，而且在我們的其他一些較小品牌中，我們也確保我們正在動員起來，幫助那些因製造商的消失而失去部分供應源的零售商。出去。

And to make sure that, again, we're really playing offense from a retail and a consumer's standpoint, that we're playing offense on our brands to make sure we're top of mind for consumers, so if other channels close up, they're looking at us.

再次確保，從零售和消費者的角度來看，我們確實在進攻，我們正在進攻我們的品牌，以確保我們成為消費者的首要考慮，所以如果其他管道關閉，他們正在看著我們。

That's helpful. And then, Melinda, just to follow up on the cadence of the business, you did touch on this, I think, in the remarks, but, you know, we've sort of widely heard that October was a soft month. You referenced things improving in November. Any more commentary you could share about how November's been trending for you and your optimism for this, you know, holiday season?

這很有幫助。然後，梅琳達，為了跟進業務的節奏，我認為您在評論中確實提到了這一點，但是，您知道，我們廣泛聽說十月是一個疲軟的月份。您提到 11 月情況有所改善。您還可以分享更多有關 11 月趨勢以及您對這個假期的樂觀情緒的評論嗎？

Yeah, I mean, we've certainly seen even if you look through what would be our Q2, August, September, October, you know, as we mentioned in prepared remarks. Labor Day, looked like there was some decent strengthening, and then October, I think, across the industry was challenging. Early reads, it's still very early on the holiday season, which for all industries kind of spreads over a couple of weeks, if not months now.

是的，我的意思是，即使您仔細查看我們的第二季、八月、九月、十月，我們也肯定已經看到了，正如我們在準備好的評論中提到的那樣。勞動節，看起來有一些像樣的加強，然後十月，我認為，整個行業都充滿挑戰。早期閱讀，現在假期還很早，對於所有行業來說，假期都會持續幾週甚至幾個月。

So, we were pleased with what we saw in the early days of the holiday season, and I think we're just going to continue to see kind of a bumpy consumer experience here for a while. So, we're focused on executing against those consumers that are still willing to buy, and it does help that we're a little more upper-middle-income consumer. So they are always going to be a little less affected by some of these economic challenges.

因此，我們對假期初期所看到的情況感到滿意，我認為我們將在一段時間內繼續看到這裡的消費者體驗坎坷。因此，我們專注於針對那些仍然願意購買的消費者，這確實有助於我們成為中上收入消費者。因此，他們受到其中一些經濟挑戰的影響總是會稍微小一點。

Absolutely. That's very helpful. I'll turn it over others. Thanks so much.

絕對地。這非常有幫助。我會把它交給別人。非常感謝。

Thanks, Brad.

謝謝，布拉德。

Thank you very much. Your next question is coming from Anthony Lebiedzinski from Sidoti & Company. Anthony your line.

非常感謝。您的下一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。安東尼你的台詞。

Thank you, and good morning, and thanks for taking the questions.

謝謝您，早安，謝謝您提出問題。

Good morning.

早安.

Yeah, so good morning. First, just to follow up on Brad's question about as far as design, sales, and average ticket, is there any way you guys can share any quantifiable metrics on that as far as, you know, how much of your revenue comes from in-home design nowadays and maybe any sort of comments on the average ticket?

是的，早安。首先，為了跟進布拉德關於設計、銷售和平均門票的問題，你們有什麼辦法可以分享任何可量化的指標，就你們知道，你們的收入有多少來自於——現在的家居設計以及對平均票價的任何評論？

Yeah, Anthony. Right now, we've been increasing this, and it's continued a slow march, if you will, but it's a continued march up. We're now around 30% design sales, and that's continuing to increase. We continue to see year-over-year improvements in that metric as the stores execute extremely well with the consumers who are coming in to shop there.

是的，安東尼。現在，我們一直在增加這一點，如果你願意的話，它繼續緩慢前進，但它是持續上升。目前，我們的設計銷售額佔 30% 左右，而且這一數字還在持續成長。我們繼續看到該指標逐年改善，因為商店對前來購物的消費者表現得非常好。

And then from an average ticket perspective, we're also seeing slight increases there, particularly with the higher design sales. We're seeing folks buying more product, and those are two of the reasons that Melinda also added to the other ones relative to what we're doing in the store, as well as what we're doing from a brand perspective that are enabling our retail stores to outperform what we believe is outperforming the industry in general.

從平均門票的角度來看，我們也看到了輕微的成長，特別是隨著設計銷售的增加。我們看到人們購買了更多的產品，這是梅琳達還添加到其他原因中的兩個原因，這些原因與我們在商店中所做的事情有關，以及我們從品牌角度所做的事情能夠實現我們的零售店的表現將超越我們認為的整體行業表現。

All right. Thanks, Bob. In terms of the guidance for Q3, is this mostly volume driven as far as the sales decline from last year? You know, how should we think about pricing? I know it was a bit of a factor in Q2, but just overall, I just wanted to get a better understanding as to how you think about the volume versus pricing dynamics.

好的。謝謝，鮑伯。就第三季的指導而言，這主要是銷量比去年下降所致嗎？您知道，我們該如何考慮定價？我知道這是第二季的一個因素，但總的來說，我只是想更了解您如何看待銷售與定價動態。

The pricing is pretty much in--, we pretty much lapped all the price increases that we've taken. There's been some promotional or opening price point sharpening and things like that that we've done. We've seen some improvements in mix, and a combination of those things is how we're kind of thinking about the kind of year-over-year from a unit perspective. Things are, I'd say, flattish with some benefit from the mix of the business we have from a retail versus wholesale, as well as the mix of some of the products that we're selling in the retail segment.

定價幾乎是--，我們幾乎接受了我們所採取的所有價格上漲。我們已經做了一些促銷或開盤價格點銳化之類的事情。我們已經看到了組合方面的一些改進，這些事情的結合就是我們從單位角度思考逐年變化的方式。我想說，事情是平淡的，因為我們的零售業務與批發業務的組合以及我們在零售領域銷售的一些產品的組合帶來了一些好處。

Got it. Thanks. And then, as you called out part of Century Vision's strategy is to get to double-digit operating margins. You made some changes to your supply chain here as of this last quarter, staying agile, as you like to say. So, I mean, can you guys-- do you think you can get back to, you know, double-digit operating margins, even if revenue will be below peak levels that you had in fiscal '22?

知道了。謝謝。然後，正如您所指出的，世紀遠景策略的一部分是實現兩位數的營業利潤率。正如您所說，截至上個季度，您對供應鏈進行了一些更改，以保持敏捷性。所以，我的意思是，你們是否認為你們可以回到兩位數的營業利潤率，即使收入將低於 22 財年的峰值水平？

Yes. Our plan will be to get our sales above those peak levels with all the work that we're doing from a Century Vision strategy perspective. That includes all the work we're doing on the retail side relative to acquisitions, new store openings, and just continued execution of the store to drive same-store sales.

是的。我們的計劃是，從世紀願景策略的角度出發，透過我們正在做的所有工作，使我們的銷售額超過峰值。這包括我們在零售方面所做的所有工作，包括收購、開設新店以及繼續執行商店以推動同店銷售。

All the channel expansion strategy that we've got right now is delivering-- we're getting into new customers, and we're delivering incremental volume from that. So, with all of those going on and then eventually, we will see the consumer come back in and start shopping, because the economy will get better. The housing market will improve, and people will start --kind of we'll see the industry come back from that perspective.

我們現在擁有的所有通路擴張策略都在交付——我們正在吸引新客戶，我們正在由此增加銷售量。因此，隨著所有這些的發生，最終我們將看到消費者回來並開始購物，因為經濟將會好轉。房地產市場將會改善，人們將會開始——我們會看到這個產業從這個角度回來。

A combination of all those things will indicate that we're going to be over that the peak that we hit during COVID. The question of when that's going to happen is a function of the macroeconomic environment, but we're working on all the things that we can work on to make that happen. And as we're doing that, we're doing a lot of work, particularly on the wholesale side, to bring that business back up into the, 10 % margin area that it was pre-pandemic.

所有這些因素的結合將顯示我們將超過新冠疫情期間所達到的高峰。何時實現這一目標取決於宏觀經濟環境，但我們正在盡一切努力實現這一目標。在我們這樣做的同時，我們正在做大量工作，特別是在批發方面，以使該業務恢復到大流行前 10% 的利潤率區域。

We're getting more efficient in our plans. We just took a decision relative to closing a facility. Because of the productivity improvements we've seen in the US plants, we were able to absorb all that volume into those plants. So, it's not something that's going to happen next quarter, but over time, we're going to continue to move that wholesale business up to that 10%, and we'll continue to execute well on the retail side. And that's the formula, if you will, for getting to the consistent double-digit margins.

我們的計劃變得更有效率。我們剛剛做出了關閉設施的決定。由於我們在美國工廠看到了生產力的提高，我們能夠將所有的產量吸收到這些工廠中。因此，這不會在下個季度發生，但隨著時間的推移，我們將繼續將批發業務提高到 10%，我們將繼續在零售方面表現良好。如果你願意的話，這就是獲得穩定的兩位數利潤率的公式。

All right. Well, that all sounds good. So, thank you very much, and best of luck going forward.

好的。嗯，聽起來不錯。所以，非常感謝您，祝福您今後一切順利。

Thank you.

謝謝。

Thanks, Anthony.

謝謝，安東尼。

Thank you very much. (Operator Instructions)

非常感謝。 （操作員說明）

Our next question is coming from Robert Griffin of Raymond James. Bobby, your line is live.

我們的下一個問題來自雷蒙德·詹姆斯的羅伯特·格里芬。鮑比，您的線路已上線。

Good morning, everybody. Thanks for taking my questions. (multiple speakers) I want to circle back on the restructuring, and hopefully maybe we can unpack the changes a little bit more and then maybe talk about what do you think that opportunity can do to the wholesale margins. And then I guess as the second part of that question is, when you look back versus pre-pandemic, so not the pandemic peak, but going back to call it like FY19, what are the biggest two or three drivers in the difference between wholesale being 10% and now wholesale being 7% or 8% margins?

大家早安。感謝您回答我的問題。 （多名發言者）我想回顧一下重組，希望我們可以更多地解釋這些變化，然後也許可以談談您認為這個機會可以對批發利潤產生什麼影響。然後我想這個問題的第二部分是，當你回顧大流行之前，所以不是大流行高峰，而是像 2019 財年那樣稱呼它時，批發和零售之間最大的兩三個驅動因素是什麼？是10%，現在批發利潤是7% 或8%？

I'll start, Bobby. If you look at what we did over the last three years when there was so much supply chain disruption, and then at one point we were at kind of a six- to nine-month backlog, what we did is prioritize getting our consumers and our customers service. And as you know, our production process is an artesian process. It's people with hands putting together fabric, foam, steel, and wood.

我要開始了，鮑比。如果你看看我們在過去三年裡所做的事情，當時供應鏈中斷如此之多，然後在某一時刻我們有六到九個月的積壓，我們所做的就是優先考慮讓我們的消費者和我們的客戶顧客服務。如您所知，我們的生產過程是自流過程。人們用手將織物、泡棉、鋼材和木材組裝在一起。

And so we opened up quite a few leased facilities to essentially get the people and the processes in place to service that backlog. As the dust has settled now, that's giving us the opportunity to look at that, get back to the blocking and tackling work that we've had for many years around being super productive, and get our existing plans back on track with less disruption.

因此，我們開放了相當多的租賃設施，從根本上讓人員和流程到位，以服務積壓的工作。現在塵埃落定，這讓我們有機會審視這一點，回到我們多年來圍繞超級生產力進行的阻礙和解決工作，並讓我們現有的計劃回到正軌，減少干擾。

So with that, that enables us to start to-- it's never easy, to be clear, to close locations, right, those that impact people. But we're making those tough choices and closing down some of those leased facilities and all as the rest of our network kind of gets back to, you know, to the excellent productivity levels that they've had in the past.

因此，這使我們能夠開始——要明確的是，關閉那些影響人們的地點從來都不是一件容易的事。但我們正在做出這些艱難的選擇，並關閉了一些租賃設施，而我們網路的其餘部分則恢復到了過去的出色生產力水平。

So I think that's the biggest single piece is somewhat managing through the disruption now and then designing that footprint of the future that meets our consumer needs and our customer needs for the long term at the sort of strategic level.

因此，我認為最重要的部分是在某種程度上管理現在的顛覆，然後設計未來的足跡，在策略層面上滿足我們的消費者需求和客戶的長期需求。

Okay.

好的。

And then, Bob, I think you touched on it a little bit in your remarks about improving the efficiency, but just any color on kind of where we are versus, you know, historical efficiency on an output per, I don't know output per employee or any type of metrics you guys look at that kind of help us think about this sequentially building? Because I believe that is probably one of the biggest drivers of getting wholesale margins back to double digits, right?

然後，鮑勃，我想你在關於提高效率的評論中談到了一點，但只是我們所處的位置的任何顏色與，你知道，每個輸出的歷史效率，我不知道輸出每個員工或你們看到的任何類型的指標可以幫助我們思考這個順序建立嗎？因為我相信這可能是將批發利潤率恢復到兩位數的最大驅動力之一，對吧？

It is. It's a combination of the productivity as well as like the decision that we just made. We should get at least 50 to 60 basis points of improvement next year versus this year due to that restructure that we just announced. Again, it's not going to start until next year because it's going to take three months or six months for us to go off and get completed. It will be completed by the beginning of fiscal '25.

這是。這是生產力以及我們剛剛做出的決定的結合。由於我們剛剛宣布的重組，明年我們的業績應該會比今年提高至少 50 到 60 個基點。再說一次，它要到明年才會開始，因為我們需要三個月或六個月的時間才能完成。它將在 25 財年年初完成。

But it's going to be that couple there's no one single it's not just a worker productivity piece of it. There's work that we're doing relative to how we are scheduling our plants, what products are being made in our plants. We're doing work on our delivery expense and our delivery network and how we do that. So we're tackling every single aspect of our supply chain cost structure via a program we call Transform.

但這將是一對夫婦，沒有一個人，這不僅僅是工人生產力的一部分。我們正在做的工作涉及如何安排工廠、工廠生產什麼產品。我們正在研究我們的配送費用和配送網路以及我們如何做到這一點。因此，我們正在透過一個稱為 Transform 的計劃來解決供應鏈成本結構的各個方面。

And that program is turning over every rock, making improvements in a number of different areas. So it's hard to quantify just one thing for you to say, okay, our productivity is so many silvers per shift for whatever, and then it's going to be up by, you know, 10% and that kind of thing. I don't know if that's what you were looking for or not.

該計劃正在徹底改變一切，在許多不同領域做出改進。因此，很難量化一件事，讓你說，好吧，我們的生產力是每班生產這麼多銀子，然後它會提高，你知道，10% 之類的。我不知道這是否是您正在尋找的。

No, that's helpful. The basis point improvement based on restructure is helpful too, yeah. And I guess the last side of things is what does the change do from a capacity standpoint? You know, hopefully one day we're going to get back to a point where industry is growing again. I'm hopeful that's going to happen sometime. But what does it do from a capacity standpoint if we get back into a nice type of recovery?

不，這很有幫助。基於重組的基點改進也很有幫助，是的。我想事情的最後一個面向是，從容量的角度來看，這種變化會帶來什麼影響？你知道，希望有一天我們能回到工業再次成長的階段。我希望這有一天會發生。但從容量的角度來看，如果我們回到良好的復甦狀態，它會扮演什麼角色呢？

Yeah, our focus is absolutely making sure we can service, those incoming order rates. And to your point, eventually there's going to be a tailwind here, right, on top of all the good work to drive demand. And so, that's part of our overall equation is to make sure we've got the headroom for when we see order rates pick back up significantly.

是的，我們的重點絕對是確保我們能夠為這些傳入訂單率提供服務。就你的觀點而言，除了所有推動需求的良好工作之外，最終還會出現順風，對吧。因此，我們總體等式的一部分是確保當訂單率顯著回升時我們有足夠的空間。

And, importantly, our supply chain will remain agile. So over time the potential for expansion and existing, you know, of our existing footprint is something we're always looking at to make sure not just that we've got enough capacity but that it's in the right locations furniture are big pieces to move around. So you want to make sure that that footprint is in the right place relative to where your customer base is too.

而且，重要的是，我們的供應鏈將保持敏捷。因此，隨著時間的推移，我們一直在關注現有足蹟的擴展和現有潛力，以確保我們不僅擁有足夠的容量，而且位於正確的位置，家具是需要移動的大件大約。因此，您要確保該足跡也位於相對於您的客戶群所在的正確位置。

And then congrats on getting the agreement to acquire the six Midwest stores. Are the conversations changed any or happening more frequently with some of the independent galleries given some of the headwinds the industry has been facing or is it still kind of, as we've always talked about historically, kind of an ebb and flow basis of, you know, a timing you can't really predict?

然後恭喜您獲得收購中西部六家商店的協議。考慮到行業一直面臨的一些阻力，一些獨立畫廊的對話是否發生了變化，或者是否更加頻繁地發生，或者是否仍然像我們歷史上一直談論的那樣，是一種潮起潮落的基礎，你知道，一個你無法真正預測的時間嗎？

You know, we've talked over the last couple of years about being a little more strategic in those conversations on our end rather than kind of waiting to see if someone knocks on the door, making sure we're proactively, partnering with our long-term independent furniture gallery owners so that they know we're here, if they're interested in what that would look like for them financially.

你知道，在過去的幾年裡，我們一直在談論在我們這邊的對話中採取更具戰略性的做法，而不是等著看是否有人敲門，確保我們積極主動，與我們的長期合作夥伴合作。- 長期獨立家具畫廊業主，以便他們知道我們在這裡，如果他們對他們的財務狀況感興趣的話。

So we have been definitely more strategic in those conversations in recent years. I wouldn't say anything given the economy is really changing right now. Simply, you know, for the most part, La-Z-Boy Furniture, as you saw in the results the last couple quarters. La-Z-Boy Furniture galleries broadly are performing well on the strength of the brand and the product offerings. And so, you know, you're not seeing that like you might see mom and pops that are general dealer type selling a lot of different brands struggling more.

因此，近年來我們在這些對話中無疑地更具策略性。鑑於目前經濟確實正在發生變化，我不會說什麼。簡而言之，您知道，在很大程度上，La-Z-Boy Furniture，正如您在過去幾季的結果中看到的那樣。 La-Z-Boy 家具畫廊憑藉品牌實力和產品供應廣泛表現良好。所以，你知道，你不會看到像普通經銷商類型銷售許多不同品牌的夫妻店那樣陷入困境。

Very good. Well, I appreciate the detail and best of luck here and hope everybody has a happy holiday season.

非常好。嗯，我很欣賞這裡的細節和祝你好運，並希望每個人都有一個快樂的假期。

Thanks, Bobby.

謝謝，鮑比。

Thank you very much. Well, we don't appear to have any further questions in the queue. I will now hand back over to the management team for their closing comments.

非常感謝。嗯，我們隊列中似乎沒有其他問題了。我現在將交回給管理團隊以徵求他們的總結意見。

Thanks, Jenny. Melinda, Bob, and I will be in our office to take any follow-up questions we didn't get to on the call. Have a great day.

謝謝，珍妮。梅琳達、鮑伯和我將在我們的辦公室回答我們在電話會議中未解決的任何後續問題。祝你有美好的一天。

Thank you very much, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

非常感謝大家。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。