Leon's earnings climb 6.9% in 4Q
Michael J. Knell -- Furniture Today, March 9, 2008
Toronto — Leon's Furniture, Canada's most profitable full-line furniture retailer, has reported sales and earnings gains for the fourth quarter and full year.
Leon's corporate sales of C$185.9 million in the quarter were up 3.2% from the comparable 2006 period, and franchise store sales climbed 7.4% to C$60.9 million. Total sales came to C$246.8 million, up 4.2% period in 2006.
Net income rose 6.9% to C$21.6 million. The company noted that net results include a one-time charge of C$1 million to write down the value of future tax breaks, because of a reduction in the corporate income tax rate by the Canadian government. Excluding this adjustment, fourth quarter earnings were 32 cents per share, an increase of 10.3%.
Terry Leon, president and CEO, said same-store sales at corporate stores were up 2.1% for the quarter.
During the quarter, Leon's opened a new warehouse and showroom in the Montreal suburb of Longueuil, Quebec.
For the full year, corporate sales rose 7.8% to C$637.5 million, with same-store sales up 4.4%. Franchise sales climbed 8.8% to C$58.5 million. That brought total sales up 8.4% to C$768.5 million.
Net income was C$58.5 million or 83 cents per share, an increase of 9.2% per cent over 2006. Excluding the one-time tax adjustment, net earnings were 84 cents per share, an increase of 10.5%.
Leon's completed its acquisition of Appliance Canada Limited in January and will operate it as a separate division.
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Leon's earnings climb 6.9% in 4Q
Mar 9, 2008
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