Leon's posts gains as it continues expansion, renovation
By Michael J. Knell -- Furniture Today, September 2, 2007
Toronto — Major Canadian retailer Leon's Furniture posted a 9.7% second-quarter corporate sales gain to C$147 million, as net income for those stores and its franchised units climbed 17% to C$9.9 million, or 14 Canadian cents per common share.
Total sales in the quarter rose 10% to C$190.4 million, driven by an increase of 11.6% at franchised stores to C$43.4 million.
"We experienced good sales across the country, with same-store corporate sales up 3.5% compared to the prior year's second quarter," said Mark J. Leon, chairman of the publicly held, family-managed national chain.
For the six months, total Leon's sales were C$370.2 million, including C$84.5 million at franchisees, an increase of 12.9% over last year's first half. Net income was C$20.7 million, or 29 cents per common share, a 16% gain.
"We were able to continue to improve our results in the second quarter, even though the pace of growth in overall furniture sales has slowed," Leon said. "We believe we've been able to increase market share."
The company is continuing its long-term expansion and store renovation program. Major renovations are under way at corporate stores in Kitchener, Ontario, and Calgary, Alberta. A new store will open this fall in the Montreal suburb of Longueuil, replacing an existing store in Greenfield Park. Sites have been acquired for new stores in North Calgary and in downtown Toronto.
Leon also said the company has signed a tentative agreement to purchase Appliance Canada Ltd., a white-goods specialist with annual sales of about C$100 million.
"This purchase will give us a significant entry into a new market, namely the wholesale distribution of major home appliances to builders and apartment landlords," he said. "We also plan to maintain Appliance Canada's retail sales of higher-end appliances to the public, and retain the services of its management and employees."
Looking ahead, Leon doesn't see any great changes in the competitive environment, although the pace of the chain's sales increases could moderate in the second half of 2007.
At the end of the first half, Leon's operated 35 corporate stores and 28 franchise units.
-
Leon's continues expansion despite tough 2011
Mar 20, 2012 -
Pier 1 Earnings Up 15.7% in 2q
Sep 23, 2011
VIEW ALL GALLERIES
