Leon's 3Q Sales Off 3%

November 10, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on November 11, 2010

Leon's Furniture Ltd. on Wednesday announced third-quarter 2010 sales of C$228.9 million, a decrease of 3 percent from the prior-year period.

While sales dropped for the period, net income increased 18.2 percent to C$18.1 million.

For the nine months ended Sept. 30, total for Toronto-based Leon's sales were C$642.3 million (C$137.2 million of franchise sales), compared with C$641.8 million (C$136.6 million of franchise sales) in 2009, an increase of 0.1 percent; and net income was C$41.9 million, an increase of 30.4 percent per common share.

Construction has been completed on a new 73,000-square-foot facility in Thunder Bay, Ontario, which will open this week. Construction has begun on a new 84,000-square-foot building in Regina, Saskatchewan, that is scheduled to be completed by late 2011. Leon's also committed to leases for a 76,000-square-foot store in Guelph, Ontario; and a 46,700-square-foot store in Rosemere, Quebec; and those should open next Fall.

Leon's also plan major renovations to be complete by the end of next year at its Sault St. Marie and Sudbury stores. In addition, Leon's had grand openings at two new franchises; Collingwood, Ontario, and Fort Frances, Ontario. At the present time, all funding for new store projects and renovations is scheduled to come from existing cash resources.

Leon's has 38 corporate and 28 franchise stores every Canadian province except British Columbia. Product lines sold at retail include furniture, appliances and electronics.