Achieving Our Century Vision Strategy
For nearly a century, La-Z-Boy Incorporated has built a business designed to endure. Our differentiated, vertically integrated model ― spanning design, manufacturing and retail ― gives us unique control over the customer experience and positions us to succeed for the next 100 years.
Our long-term strength is rooted in a:
- Consumer-first mindset that has guided our decisions since our founding and continues to shape our future
- Culture of care that values our employees, communities, and the world around us
- Thoughtful global footprint that recognizes sustainable business practices create lasting value for current and future generations
- Strong balance sheet and consistent performance that provide the stability and flexibility to invest in long-term growth
These advantages come to life through Century Vision, our enterprise strategy for FY 2027 and beyond. By expanding brand reach, strengthening capabilities across the business, and driving profitable, sustainable growth, Century Vision is transforming La-Z-Boy Incorporated and enabling us to thrive for generations to come.
Key elements of this work include our ongoing TranZform continuous improvement initiative and the efforts underway reshaping our distribution and home delivery network addressed on the following pages.
Framing a Future with La-Z-Boy Incorporated
James Henderson, Structural Designer, began his career with La-Z-Boy Incorporated 42 years ago at age 19. Growing up on a family farm near Dayton, Tennessee – home to the Company’s largest manufacturing facility – he chose to pursue a path outside the family business. Although farm life had given him experience with a wide range of tasks, James had no formal woodworking background when he joined La-Z-Boy as a furniture framer.
Over the years, James took on several new opportunities and is now a framer in our Innovation Department. “I like doing new things and finding ways to do things better,” James says. “The Innovation Center is the right place for me.”
As for a career with La-Z-Boy Incorporated, James encourages people to give it a try.
“The Company has been here nearly 100 years and will be here 100 more. Everybody needs a chair.”
Built to TranZform
TranZform is the La-Z-Boy Incorporated continuous improvement program, designed to empower employees and create a culture where great ideas can come from anywhere. Built on Lean manufacturing principles and sustainable practices, TranZform encourages teams across our manufacturing operations to identify opportunities, solve challenges, reduce waste, and improve the way we work every day. Through tools such as stand-up meetings, Kaizen workshops, waste walks, and 5S audits, employees play an active role in making our operations safer, more efficient, and more effective.
By combining employee engagement with a mindset of continuous improvement, TranZform is leveraging the passion of our employees to build a more agile, resilient, and sustainable business for the next century. Following are just a few examples from FY 2026:
- All direct/indirect manufacturing site employees are trained in 5S.
- TranZform actions increased 89% and events increased 39% compared with FY 2025, indicating far higher engagement levels.
- Based on employee feedback, we improved wood, foam, and poly-fill cutting processes to further reduce the potential for injuries.
- Employees identified an opportunity to improve sofa design and developed a solution in a Kaizen session that is being deployed across the organization.
In FY 2026, employees conducted 19,463 TranZform actions, including:
- 9,508 stand-up meetings to encourage improvement ideation
- 2,675 Kaizen workshops to solve specific challenges
- 2,383 5S audits keeping work areas organized, clean, safe, and efficient
- 1,774 process control sessions to maintain stable, consistent production
- 1,726 waste walks to identify and address inefficiencies
- 519 problem-solving sessions to eliminate root causes
- 470 business reviews evaluating continued progress toward key performance indicators
- 408 other improvement-focused actions across the enterprise
TranZforming Distribution and Home Delivery
Every day, thousands of La-Z-Boy Incorporated products make their way from our manufacturing facilities to customers’ homes. To do this as efficiently and responsibly as possible, we are refining our distribution network through a hub-and-spoke approach via our Distribution & Logistics Network Optimization Project.
By strategically positioning inventory closer to customers and streamlining the movement of products across our network, we can improve service, reduce unnecessary transportation, and make better use of resources. It’s one way we’re working to strengthen our business for the next century while reducing our environmental footprint.
As part of this effort, we are establishing three centralized warehousing hubs near our manufacturing facilities and customers. The first hub in Phoenix opened in FY 2026. Hubs in Dayton, Tennessee, and Neosho, Missouri, are slated to open in FY 2027.
With the opening of the Phoenix facility, we were able to reduce our square footage by around 20% across the West Coast. We’re in the early stages of determining the improved environmental footprint of this new model.
When this transition is complete, the hubs will be served by approximately 35-40 Z Docks that handle customer deliveries. Z Dock teams are specially trained to protect, deliver, and assemble our furniture. They return packaging materials to the Z Dock to reuse and recycle whenever possible.
Our unique hub-and-spoke model creates many opportunities for La-Z-Boy Incorporated. It:
- Improves efficiency by coordinating inventory and transportation planning in a central location
- Optimizes delivery routes and reduces vehicles returning empty
- Improves delivery speed to stores and consumers
- Centralizes inventory management which drives down material waste
Most importantly, it improves the experience for our customers. Since launching the model in mid-FY 2026, over 96% of customers rating the delivery experience rated it excellent.