Flexsteel Records Q4 Net Loss Amid Declining Demand, Inventory Glut

August 23, 2022  by HFBusiness Staff in Business Strategy, Industry   

However, sales for the fiscal year rose more than 13 percent to $544.3 million.

The company also recorded a net loss of $271,000, or 5 cents per share, in the quarter, and saw its full year net income tumble to $1.85 million, or 28 cents per share, from $23 million, or $3.09 per share, in the previous fiscal year.

“Fiscal 2022 was a year of significant challenges but also many successes, and I’m especially proud of and grateful for our team of dedicated employees. Their resilience in the face of numerous obstacles presented by COVID-19 and unprecedented global supply chain disruptions was outstanding,” said Jerry Dittmer, president and CEO. “Even with these hurdles, our team delivered another record-setting year of sales. At the same time, we made notable strides in advancing our strategic agenda and building a solid foundation for long-term profitable growth.

“We strengthened talent and culture, including the addition of two key new executive team members to build on our success in global supply chain operations and the finance and accounting organization. The expansion of our supply chain capacities at our Juarez, Mexico plant was successful, and we strengthened our customer service experience by opening a new distribution facility on the east coast.”

Dittmer said short-term “market headwinds” may crimp profits in the first half of the new fiscal year but said inventory reductions should help the company generate positive operating cash flow during the year.

“In summary, we’re enthusiastic about the long-term growth opportunities for the Company while being mindful of the short-term challenges we will face ahead and are making the right strategic decisions now to realize our growth potential,” Dittmer said.