La-Z-Boy Completes Seattle-Market Acquisition
September 15 2020 - 4:20PM
La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today announced the completion of its previously
announced asset acquisition of the Seattle, Washington business
that operated six independently owned La-Z-Boy Furniture Galleries®
stores, with approximately $30 million in annual retail volume in
calendar 2019, and one warehouse. The transaction is the result of
the planned retirement of independent dealers, Chris and Lisa
Washko. The stores have become part of La-Z-Boy’s Retail segment,
which is now composed of 159 stores.
Kurt L. Darrow, Chairman, President and Chief
Executive Officer of La-Z-Boy, said, "We are thrilled to have
acquired the strong base of La-Z-Boy Furniture Galleries® stores in
the Seattle market. The stores have historically performed above
the network average for sales and we believe that there are great
prospects for La-Z-Boy in this market. I’d like to thank Chris and
Lisa for their leadership over the years and their unwavering
commitment to the La-Z-Boy brand as they steadily grew the
business. I wish them all the best in their well-deserved
retirement.”
Tj Linz, President of La-Z-Boy Retail, said, “We
are excited to begin working with some 60 Seattle team members, an
exceptional group of individuals that provides outstanding service
to their customers. With behind-the-scenes work conducted over the
last several months, the integration of the stores is expected to
be seamless and we look forward to operating the stores in this
dynamic market as we turn houses into homes. We plan to continue to
invest in this market with store remodels and potential new stores
so that it continues to grow and reaches its full potential.”
Chris Washko said, “I’d like to thank our
dedicated team members for helping La-Z-Boy Seattle achieve such
great success over the last nine years. They are awesome
individuals and it has been a distinct pleasure to work with them.
I’d also like to thank Media Partners who have played a key role in
promoting the La-Z-Boy brand in western Washington. And, finally, a
heartfelt thanks to everyone at La-Z-Boy Incorporated; we are
honored to have had the opportunity to work with a world-class
organization and brand.”
As La-Z-Boy is already recording a portion of
the Seattle-based store volume in its wholesale segments, the
acquisition of the six stores is expected to contribute
approximately $15 million of additional sales annually to the
company on a consolidated basis, based on calendar 2019 sales for
the Seattle-based stores.
Terms of the transaction were not disclosed.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking”
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current
facts. Generally, forward-looking statements include information
concerning expectations, projections or trends relating to our
results of operations, financial results, financial condition,
strategic initiatives and plans, expenses, dividends, share
repurchases, liquidity, use of cash and cash requirements,
borrowing capacity, investments, future economic performance,
business, and industry and the effect of the novel coronavirus
(“COVID-19”) pandemic on our business operations and financial
results.
The forward-looking statements in this press
release are based on certain assumptions and currently available
information and are subject to various risks and uncertainties,
many of which are unforeseeable and beyond our control, such as the
continuing and developing impact of, and uncertainty caused by, the
COVID-19 pandemic. Additional risks and uncertainties that we do
not presently know about or that we currently consider to be
immaterial may also affect our business operations and financial
results. Our actual future results and trends may differ materially
depending on a variety of factors, including, but not limited to,
the risks and uncertainties discussed in our fiscal 2020 Annual
Report on Form 10-K and other factors identified in our reports
filed with the Securities and Exchange Commission. Given these
risks and uncertainties, you should not rely on forward-looking
statements as a prediction of actual results. We are including this
cautionary note to make applicable and take advantage of the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995 for forward-looking statements. We undertake no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or for any other
reason.
Additional Information
This news release is just one part of La-Z-Boy’s
financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission,
which is available at:
https://lazboy.gcs-web.com/financial-information/sec-filings.
Investors and others wishing to be notified of future La-Z-Boy news
releases, SEC filings and quarterly investor conference calls may
sign up at: https://lazboy.gcs-web.com/.
Background Information
La-Z-Boy Incorporated is one of the world’s
leading residential furniture producers, marketing furniture for
every room of the home. The Wholesale segment includes the
company's upholstery companies, England and La-Z-Boy, and the
company's casegoods companies, American Drew®, Hammary®, and
Kincaid®. The company-owned Retail segment includes 159 of the
354 La-Z-Boy Furniture Galleries® stores. Joybird is an e-commerce
retailer and manufacturer of upholstered furniture.
The corporation’s branded distribution network
is dedicated to selling La-Z-Boy Incorporated products and brands,
and includes 354 stand-alone La-Z-Boy Furniture Galleries® stores
and 561 independent Comfort Studio® locations, in addition to
in-store gallery programs for the company’s Kincaid and England
operating units. Additional information is available at
http://www.la-z-boy.com/.
Contact: |
|
Kathy Liebmann |
|
kathy.liebmann@la-z-boy.com |
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