Daily News
From Home Furnishing Business
Flexsteel Industries Reports First Quarter Financial Results
October 31,
2023 by HFBusiness Staff in Business Strategy, Industry 
Flexsteel Industries, Inc., one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported first quarter fiscal 2024 results.
Key Results for the First Quarter Ended Sept 30
Net sales for the quarter of $94.6 million compared to $95.7 million in the prior year quarter, a decrease of (1.1%).
Gross margin increased to 19.5% for the first quarter compared to 16.0% in the prior year quarter.
GAAP operating income of $1.9 million or 2.0% of net sales for the first quarter compared to $0.4 million or 0.4% of net sales in the prior year quarter.
GAAP net income per diluted share of $0.14 for the current quarter compared to net income of $0.05 in the prior year quarter.
Non-GAAP net income per diluted share of $0.14 for the quarter compared to non-GAAP net income of $0.09 in the prior year quarter.
GAAP to non-GAAP reconciliations follow the financial statements in this press release
"I am pleased with our first quarter results. We are competing well and gaining share in a challenging business environment," said Jerry Dittmer, president and CEO of Flexsteel Industries, Inc. "While net sales were down 1% compared to the prior year quarter, sales in the quarter were adversely impacted by the elimination of ocean freight surcharges in the prior year when ocean container delivery costs were significantly inflated.”
“Excluding the approximately $7 million impact from the surcharge elimination, growth from unit volume and sales mix was a robust 6.8% in the quarter, reflecting our strong sales execution and the momentum of our growth initiatives. In addition, we leveraged operational efficiencies and cost savings to expand gross margin and improve operating income from $0.4 million in the prior year quarter to $1.9 million this quarter."
Mr. Dittmer concludes, "A variety of macroeconomic headwinds continue to weigh on industry demand and the outlook for consumer spending on higher priced discretionary purchases such as furniture. Despite these external challenges, our team isn’t deterred and remains intensely focused on profitably growing our business in fiscal year 2024”
“We enter the second quarter with positive momentum and are confident in our ability to grow sales both compared to last year and the first quarter, while also improving gross and operating margins over the first quarter. Our strategies are working. We’ll continue to innovate, drive expedient and relevant new product development, and build strong brands. Regardless of demand uncertainties, we remain aggressive in identifying new growth opportunities while prudently managing costs and investing for future growth and profit enhancement."