Furniture source Flexsteel posts loss as sales fall 25%
Residential furniture business down 11.9%
Larry Thomas -- Furniture Today, April 22, 2009
DUBUQUE, Iowa — Upholstery and case goods resource Flexsteel Inds. reported a net loss of $1.85 million or 28 cents per share for the quarter ended March 31 as sales fell 25%.
The bottom line included $2.2 million in one-time charges for inventory write-downs and workforce reductions.
In the same quarter last year, Flexsteel had a profit of $849,531 or 13 cents per share.
Sales for the most recent period, the third quarter of Flexsteel's fiscal year, totaled $73.6 million. In the same quarter last year, sales were $98.1 million.
The biggest sales decline occurred in the company's recreational vehicle seating business, where sales were just $2.5 million - a drop of 82% from $14 million in last year's third fiscal quarter.
Residential furniture sales declined 11.9% to $53.6 million and commercial furniture sales fell 24.9% to $17.5 million.
"While we expect current business conditions will persist for the remainder of calendar year 2009, we remain optimistic that our strategy of a wide range of quality product offerings and price points to the residential, recreational vehicle and commercial markets, combined with our conservative approach to business, will be rewarded over the longer term," the company said in a statement.
For the nine months ended March 31, sales fell 18.2% to $249.6 million.
During that same period, residential furniture sales were off 9.1% to $173.7 million, while recreational vehicle seating sales plunged 70% to $13.4 million. Commercial sales fell 9.9% to $62.5 million.
The nine-month net loss totaled $2.31 million or 35 cents per share. That compares with net income of $3.9 million or 59 cents per share in the nine months ended March 31, 2008.
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Flexsteel posts profit despite 25.9% sales decline
Aug 20, 2009
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