Leon's Q2 Sales off 2.4%

August 14, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on August 15, 2011

Furniture retailer Leon's Furniture reported second-quarter 2011 sales of C$209.3 million, a 2.4 percent drop from the prior-year period.

Net income for the three months ended June 30 fell 5.9 percent per common share to $11.1 million.

For the six months of 2011, Toronto-based Leon's total sales were $400.9 million were off 4.1 percent compared with 2010's first half; and net income of $21 million was down 9.1 percent.

Same store corporate sales decreased by 4.1 percent compared to the prior year. Comparable store sales are defined as sales generated by stores that have been open or closed for more than 12 months on a yearly basis.

Leon's attributed the second-quarter decrease in sales mainly to a lower average selling price than the prior year.

So far this year, the furniture retailer has opened four additional stores. Leasehold improvements have just been completed on a new leased premises of 76,000 square feet in Guelph, Ontario, with a grand opening scheduled for late August 2011. Construction is underway on a new 84,000-square-foot facility in Regina, Saskatchewan, with a scheduled grand opening for the fourth quarter of 2011; and grand openings of new 40,000-square-foot stores in Mississauga, Ontario, and Rosemère, Quebec, are scheduled for this fall.