Leon’s Sales Rise 6.2% in Third Quarter

November 15, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2007 Leon’s Furniture Ltd., Toronto, reported third-quarter 2007 sales of C$216.2 million (C$50.4 million in franchise sales), an increase of 6.2 percent over the prior year. For the period ended Sept. 30, net income was up 9.5 percent per common share to C$16.2 million.

Through three quarters of 2007, total sales of C$586.5 million (C$134.9 in franchise sales) were 10.3 percent ahead of revenue at the same point last year, while net income rose 10.6 percent per common share to $36.9 million.

While sales did not increase at the same pace as the first half of the year, management was pleased with continued improvement in financial third-quarter financial results.

Leon’s has just completed a grand opening of a new showroom and warehouse in Longueuil, Quebec; and renovations are substantially complete at existing stores in Calgary, Alberta and

Kitchener, Ontario. The retailer also has purchased land for a new showroom and warehouse in Thunder Bay, Ontario, with construction set to begin in the spring of 2008. In addition, land has also been secured in North Calgary for a new showroom and warehouse.

Leon’s continues to proceed with finalizing the purchase of Appliance Canada Ltd., with annual sales of close to C$100 million a year. The acquisition, anticipated for completion by the end of the year, gives Leon’s significant entry into the wholesale distribution of major home appliances to the building and apartment trade; and entry into selling high-end appliances at retail.