From Home Furnishing Business
Flexsteel Reports Double-Digit Sales, Profit Declines
Upholstery and casegoods resource Flexsteel Inds. (FLXS) reported double-digit sales and profit declines in the quarter ended Sept. 30 as weak retail demand and the discontinuing of certain leather upholstery imports hampered results.
Net sales totaled $112.1 million, a drop of 11.4% from $126.5 million in the same quarter last year. The company said the discontinuance of the leather upholstery products, which failed to meet its quality standards, coupled with delays in receiving some components for new products, reduced sales by about $6 million.
In addition, the comparable quarter last year included a $3 million boost in sales related to clearing a backlog of products held up by congestion at West Coast ports.
In the most recent quarter, which is the first quarter of Flexsteel’s fiscal year, residential furniture sales fell 11.9% to $93.7 million. Commercial furniture sales were off 1.8% to $18.4 million.
Net income totaled $4.75 million or 61 cents per share. That was down 17.5% from $5.76 million or 74 cents per share in the same quarter last year.
In a statement accompanying the financial results, the company said it expects furniture demand to be weak for the remainder of its fiscal year due to economic uncertainty. Flexsteel said it is focusing on streamlining product introductions and controlling discretionary spending.