Leon's Sales, Profit Increase in 1st Quarter

May 12, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 13, 2010

Furniture retailer Leon's, Toronto, on Wednesday announced first-quarter 2010 sales of C$42.3 million, a 3 percent increase over the prior-year period.

Net income for the first quarter, which ended March 31, was $11.97 million, an increase of 41.7 percent.

Higher sales were aided by a general improvement in the economy along with a strong marketing and merchandising effort. The profit improvement was mainly the result of three key factors: higher sales compared to the prior-year quarter; an improvement in our gross margin which was aided by the strengthening of the Canadian dollar and a more favorable product mix; and the continuation of improved productivity and expense controls that were initiated in the prior year.

Leon's plans to increase the pace of its expansion over the next five years with the goal of opening approximately five stores per year. This year, Leon's already has begun construction on a new 73,000-square-foot facility in Thunder Bay, Ontario; and will soon begin construction on a new 84,000-square-foot building in Regina, Saskatchewan.

Leon's also recently signed a lease for a 76,000-square-foot store in Guelph, Ontario, and will completely renovate the building for an opening in summer 2011.