Profile: La-Z-Boy Inc (LZB)

La-Z-Boy Incorporated, incorporated in 1941, is a reclining-chair manufacturer and a manufacturer of upholstered furniture. The Company also manufactures and imports casegoods (wood) furniture products for resale in North America. In addition, it has 68 Company-owned and operated retail stores located in eight markets in the United States. It markets furniture for every room of the home. The Company operates in three segments: the Upholstery Group, the Casegoods Group and the Retail Group. It sells to a number of furniture retailers primarily throughout the United States and Canada. It also sells to consumers through its Company-owned La-Z-Boy Furniture Galleries stores.

Upholstery Group

The operating units in the Upholstery Group are Bauhaus, England, and La-Z-Boy. This group primarily manufactures and sells upholstered furniture to furniture retailers and stores. Upholstered furniture includes recliners and motion furniture, sofas, loveseats, chairs, ottomans, sleeper sofas, sectionals and modulars. It imports cut and sewn fabric and leather kits.

The Company competes with Ashley, Bassett Furniture, Berkline, Bernhardt, Ethan Allen, Flexsteel, Furniture Brands International, Klaussner, Natuzzi, and Palliser.

Casegoods Group

The operating units in the Casegoods Group are American Drew/Lea, Hammary and Kincaid. This group primarily sells manufactured or imported wood furniture to furniture retailers. Casegoods product includes tables, chairs, entertainment centers, headboards, dressers, accent pieces and some coordinated upholstered furniture. Casegoods Group is primarily an importer, marketer and distributor of casegoods (wood) furniture.

In this segment the Company competes with Ashley, Bernhardt, Ethan Allen, Furniture Brands International, Hooker, Stanley and Universal.

Retail Group

The Retail Group consists of 68 Company-owned La-Z-Boy Furniture Galleries stores located in eight markets ranging from the Midwest to the East Coast of the United States and also including Southeastern Florida. The Retail Group sells mostly upholstered furniture to end consumers through the retail network. During the fiscal year ended April 25, 2009 (fiscal 2009), La-Z-Boy had 466 ComfortStudios, of which some were new studios and the rest were conversions of former in-store galleries and general dealers.

In this segment the Company competes with Ashley, Bassett Furniture Direct, Ethan Allen, Thomasville Home Furnishings Stores, Costco, Home Depot, IKEA, Sam’s Club, Target and Wal-Mart.