Overview
U.S. furniture maker's fiscal Q2 net sales rose 9% yr/yr
Adjusted EPS for fiscal Q2 rose to $1.18 from $0.95 yr/yr
Company's results driven by new product introductions and strategic account gains
Outlook
Company expects near-term pressure on demand and margins due to tariffs
Flexsteel focuses on execution amid inconsistent consumer demand
Result Drivers
SALES GROWTH - Higher unit volume in sourced soft seating products and tariff-related pricing drove 9% sales increase
MARGIN IMPROVEMENT - Gross margin rose by 170 bps due to favorable sales composition of higher margin products
PRODUCTIVITY GAINS - Structural improvements in operations led to productivity gains and cost discipline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $118.25 mln | $107.51 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $1.18 | $0.79 (1 Analyst) |
Q2 EPS | $1.18 | ||
Q2 Net Income | $6.64 mln | ||
Q2 Gross Margin | 22.70% |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the home furnishings peer group is "hold."
Wall Street's median 12-month price target for Flexsteel Industries Inc is $50.50, about 26.2% above its January 30 closing price of $40.03
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw87RxpJa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)