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From Home Furnishing Business

Flexsteel Sales Slide 5.5% Amid Weakening Demand

Upholstery and case goods resource Flexsteel Inds. (NASDAQ: FLXS) said sales slid 5.5% to $118.5 million in the quarter ended Dec. 31 as retail demand weakened.

The company said net income of $5.39 million or 68 cents per share was essentially even with the same quarter the previous year, when the totals were $5.37 million or 69 cents per share.

For the six months ended Dec. 31, sales were down 8.5% to $230.6 million. The previous six-month period included a sales boost of about $6 million due to clearing of port congestion on the West Coast.

Six-month net income totaled $10.1 million or $1.29 per share, down from $11.1 million or $1.43 per share for the six months ended Dec. 31, 2015.

Flexsteel said demand was particularly weak in its residential case goods business, where sales dropped 7% in the six-month period.  

In a statement announcing its earnings, the company said it expects furniture demand “will continue to be sporadic due to economic uncertainty for the remainder of the fiscal year,” which ends June 30.

The company didn’t issue sales or earnings projections, but said it expects sales in the third and fourth fiscal quarters to be comparable with prior year fiscal quarters.

“The company continues focusing on streamlining product introductions to increase sales and controlling discretionary spending,” the statement read.

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