From Home Furnishing Business
Flexsteel Sales Jump 6.9% in Fiscal Q1
Upholstery and case goods resource Flexsteel Inds. (NASDAQ: FLXS) said sales rose 6.9% to $119.8 million in the quarter ended Sept. 30, while a one-time gain on the sale of a facility resulted in a 30% jump in profits.
Net income totaled $6.18 million or 78 cents per share, compared with $4.75 million or 61 cents per share in the same quarter last year.
The most recent bottom line included an after-tax gain of $1.1 million or 14 cents per share from the facility sale.
The company said residential furniture sales were up 8.6% to $101.8 million, while contract furniture sales fell 2.2% to $18 million in the quarter – the first quarter of Flexsteel’s fiscal year.
Gross margin fell to 21.8% from 23.8% in the same quarter last year due largely to increased raw materials costs, and the company said it expects to see continuing raw materials increases into the 2018 calendar year.
In a statement accompanying the earnings announcement, Flexsteel said it is expecting moderate revenue growth for the remainder of the fiscal year, including a planned sales decrease to certain contract furniture customers.
“The company is focused on gross margin improvements through targeted sales price increases, improving product delivery and driving efficiencies in operations,” the statement read.
Capital expenditures in the fiscal year include $12 million toward the construction of a new factory in Dubuque, Iowa, where its corporate headquarters also is located.