Flexsteel Q3 net sales decline while income rises 9.8%

DUBUQUE, Iowa — Flexsteel Inds. reported a 3.7% decrease in net sales for its third quarter ending March 31, due primarily to decreased volume reflecting lower retail demand.

Net sales for the quarter were $120.8 million compared to net sales of $125.4 million in the prior year period.

Meanwhile, gross margin as a percent of net sales for the quarter was 23.6% compared to 22.9% for the prior year quarter, an improvement attributed to changes in product mix.

Selling, general and administrative expenses were 14.6% of net sales in the current year quarter, compared to 15.5% of net sales in the prior year quarter. The percentage improvement is primarily due to the net reimbursement of legal costs described below offset by $0.8 million or 0.7% of net sales incurred designing and developing a new business information system.

SG&A expenses for the current and prior year quarters include reimbursements related to Indiana litigation of $1.1 million and $0.6 million, respectively.

As a result, net income is reported as $7.6 million, or 96 cents per share, for the quarter, an increase of more than 9.8% from $6.9 million or 89 cents per share in the prior year quarter.

In its earnings report, Flexsteel said it expects net sales to remain steady in its fourth quarter, as it continues to focus on streamlining product introductions to increase sales and controlling discretionary spending.

Furniture Today Staff | Staff Editors

Furniture Today covers all the news concerning manufacturers, retailers and suppliers in the home furnishings sector.

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