Leon’s Furniture Sees Same-Store Sales Drop

May 12, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2008 The Jan. 1 acquisition of Appliance Canada boosted first-quarter 2008 sales at Toronto-based Leon’s Furniture Ltd. by 9 percent to $196.4 million (Canadian) compared to the prior year, but same-store sales were down. Net income rose 2.5 percent to $11.1 million.

Sales were up 2 percent at Leon’s 29 franchise furniture and appliance stores, but corporate-owned same-store sales fell 1.3 percent. The company has 35 corporate stores.

Management blamed severe winter weather, an early Easter and a new Family Day in February in Ontario for the slowdown in same-store sales.

CEO Terrence Leon said that while pleased with Appliance Canada’s initial performance under Leon’s ownership, the retailer’s margins are lower than those of a typical Leon’s store.