La-Z-Boy Acquires U.K. Licensee and Nine La-Z-Boy Furniture Galleries® Stores in the U.S.
2016年11月16日 - 6:30AM
La-Z-Boy Incorporated (NYSE:LZB) today announced it signed an
agreement to acquire the license for the La-Z-Boy brand in the
United Kingdom and Ireland from Furnico Ltd., which has been
La-Z-Boy’s sales and distribution partner in the market for the
past eight years. Annual wholesale revenue for this business
is approximately $42 million, based on current exchange
rates. Due to the licensing agreement in place today,
La-Z-Boy Incorporated already captures approximately half of the
sales volume. The agreement will be effective January 1,
2017, and its results will be reported in the company’s upholstery
segment. The existing Furnico business outside of the
La-Z-Boy license will continue with its normal operations.
The company also announced it acquired nine
La-Z-Boy Furniture Galleries® stores from an independent dealer on
November 1, 2016, with annual retail volume of approximately $35
million. The stores are located in the northeastern
Pennsylvania market, with seven in the state, one in Dover, NJ and
one in Middletown, NY. The transaction is a result of a
planned retirement of the independent dealer and the mutually
agreed-upon decision that selling the stores to La-Z-Boy
Incorporated would be in the best interest of their employees while
providing for the greatest stability and continuity of the
business. The stores will become part of La-Z-Boy’s retail
segment.
Kurt L. Darrow, Chairman, President and Chief
Executive Officer, of La-Z-Boy Incorporated, said, “These two
businesses represent approximately $77 million in annual sales
volume. Because we were already recording a portion of this
volume in our wholesale upholstery segment, these two transactions
will contribute approximately $41 million of incremental sales
volume, based on current exchange rates, to consolidated sales on
an annual basis. While we continue to steadily build the
La-Z-Boy brand throughout the U.S. and Canada through our 4-4-5
store growth strategy, we are identifying opportunities to monetize
the brand’s value outside North America and expect there to be
additional opportunities in other markets in the future.”
Based in Maidenhead, England, La-Z-Boy U.K.,
Ltd. will be led by Keith Wilson, who until recently was with
Calligaris, serving as Director for its U.K. and Ireland
business. He will work closely with Jeff Lillich, the head of
La-Z-Boy’s Europe, Middle East and Africa business. A team
will be recruited to support the growth of the business and its
existing customers.
Doug Collier, Senior Vice President, Chief
Marketing Officer and President International, of La-Z-Boy
Incorporated, said, “Furnico has done an amazing job in growing the
business and we intend to further enhance our position in the
market by making investments in the brand and our digital presence.
We thank David Winter, Paul Riding and the rest of the
Furnico team for the outstanding work they have done, and look
forward to a great future for the business.”
Darrow added, “As we continue to build our
company-owned retail business with new La-Z-Boy Furniture
Galleries® stores, it is also growing through acquisitions of
stores from retiring independent dealers. The nine stores
acquired are profitable, will be quickly integrated into our retail
segment and be accretive. I would like to take the
opportunity to thank Alyssa and Frank Hager, who opened their first
store in Wilkes-Barre, PA, in 1997. They have been great
partners, steadily building their business throughout their almost
20-year tenure, and we wish them all the best in their
much-deserved retirement. As the company-owned retail segment
grows, we are further able to capitalize on the combined
wholesale/retail margin associated with our integrated retail
strategy, which continues to deliver results.”
Forward-looking Information
This news release contains, and oral statements
made from time to time by representatives of La‑Z‑Boy may contain,
forward-looking statements. With respect to all forward-looking
statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
Actual results could differ materially from
those we anticipate or project due to a number of factors,
including: (a) changes in consumer confidence and demographics; (b)
the possibility of a recession; (c) changes in the real estate and
credit markets and their effects on our customers, consumers and
suppliers; (d) international political unrest, terrorism or war;
(e) volatility in energy and other commodities prices; (f) the
impact of logistics on imports and exports; (g) interest rate and
currency exchange rate changes; (h) operating factors, such as
supply, labor or distribution disruptions (e.g., port strikes); (i)
changes in the domestic or international regulatory environment;
(j) adoption of new accounting principles; (k) severe weather or
other natural events such as hurricanes, earthquakes, flooding,
tornadoes and tsunamis; (l) our ability to procure fabric rolls and
leather hides or cut-and-sewn fabric and leather sets domestically
or abroad; (m) information technology conversions or system
failures and our ability to recover from a system failure; (n)
effects of our brand awareness and marketing programs; (o) the
discovery of defects in our products resulting in delays in
manufacturing, recall campaigns, reputational damage, or increased
warranty costs; (p) litigation arising out of alleged defects in
our products; (q) unusual or significant litigation; (r) our
ability to locate new La-Z-Boy Furniture Galleries® stores (or
store owners) and negotiate favorable lease terms for new or
existing locations; (s) the results of our restructuring actions;
(t) the impact of potential goodwill or intangible asset
impairments; and (u) those matters discussed in Item 1A of our
fiscal 2016 Annual Report on Form 10-K and other factors identified
from time-to-time in our reports filed with the Securities and
Exchange Commission. We undertake no obligation to update or revise
any forward-looking statements, whether to reflect new information
or new developments 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:
http://investors.la-z-boy.com/phoenix.zhtml?c=92596&p=irol-sec.
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:
http://investors.la-z-boy.com/phoenix.zhtml?c=92596&p=irol-alerts&t=&id=&.
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 La-Z-Boy Upholstery segment companies
are England and La-Z-Boy. The Casegoods segment consists of three
brands: American Drew, Hammary, and Kincaid. The company-owned
Retail segment includes 132 of the 343 La-Z-Boy Furniture
Galleries® stores.
The corporation’s branded distribution network
is dedicated to selling La-Z-Boy Incorporated products and brands,
and includes 343 stand-alone La-Z-Boy Furniture Galleries® stores
and 553 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
(734) 241-2438
kathy.liebmann@la-z-boy.com
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