Flexsteel Q3 net sales decline while income rises 9.8%
April 21, 2017,
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.
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.