Leon’s sales decline 3.9% in 4Q but profit rises 3.6%
Michael J. Knell -- Furniture Today, February 22, 2010
TORONTO —
Full-line retailer Leon’s Furniture reported a modest decline in sales and a modest gain in net earnings in the fourth quarter.
Sales at corporate stores were down 3.9% in the quarter to C$198 million, with same-store sales off 4.5%. Including franchises, sales in the quarter were down 5.3% to C$255.7 million, the company said.
For all of 2009, corporate store sales declined 5% from the previous year to C$703.2 million, as same-store fell 5.4%. Including franchises, total Leon’s sales were down 5.6% to C$897.5 million.
Net income in the quarter was C$24 million, up 3.6% from the 2008 fourth period. But for the full year, earnings were down 10.3% to C$56.9 million.
“Although sales were down in the fourth quarter 2009 compared to the prior year, we are very pleased with the strong profit results this quarter,” board Chairman Mark Leon said in a letter to shareholders. “Working as a team, we were able to put in place stronger controls which resulted in a reduction of overall expenditures.”
During 2009, which was Leon’s 100th anniversary year, the company continued its self-financed renovation and expansion program. It also opened a store in downtown Toronto.
The company also announced that construction will begin shortly on two new stores, a 75,000-square-foot outlet in Thunder Bay, Ontario, and an 85,000-square-foot store in Regina, Saskatchewan. Both are new markets for the retailer.
Leon’s (a)
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 12/31 | 2009 | 2008 | Change |
| (a) In Canadian dollars. (b) Includes contributions to employee profit-sharing plan of C$1.35 million in the 2009 and 2008 quarters, C$4.1 million in the 2009 year and C$4.3 million in the 2008 year. |
|||
| Sales | C$197,986,000 | C$206,088,000 | (3.9%) |
| Operating income | 47,762,000 | 47,024,000 | 1.6% |
| Net income (b) | 24,030,000 | 23,205,000 | 3.6% |
| Earnings per share | 0.33 | 0.32 | 3.1% |
| Year ended 12/31 | 2009 | 2008 | Change |
| Sales | C$703,180,000 | C$740,376,000 | (5.0%) |
| Operating income | 132,487,000 | 142,726,000 | (7.2%) |
| Net income (b) | 56,864,000 | 63,390,000 | (10.3%) |
| Earnings per share | 0.78 | 0.87 | (10.3%) |
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