Flexsteel Reports Higher Earnings in Fiscal 2Q
Dubuque, Iowa-based furniture supplier Flexsteel Industries Inc. today (Feb. 3) reported sales for its fiscal second quarter, ended Dec. 31, rose 2.6% to $85 million compared to $82.8 million in the prior year quarter. Net income during the period was $2.9 million, or 42 cents per share, compared to net income of $2.1 million, or 31 cents per share the previous year.
For the six months, Flexsteel posted sales of $166.5 million compared to prior year sales of $170.1 million, a decrease of 2.1%. Net income was $5.3 million, or 76 cents per share, compared to net income of $4.5 million, or 65 cents per share, in the previous year. The prior year six-month period included a pre-tax charge of approximately $1 million to facility closing costs for employee separation and other closing costs.
For the quarter, residential sales were $67 million, an increase of 5.4% from the prior year’s sales of $63.5 million. Commercial sales were $18 million compared to $19.3 million in the prior year quarter, a decrease of 6.5%. For the six months, residential sales were flat at $129.5 million compared to $128.8 million the previous year while commercial sales fell 10.3% to $37 million from $41.3 million.
Gross margin for the quarter was 24.1% compared to 22.7% in the year-ago quarter. For the six months, gross margin was 23.7% compared to 22.6% for the prior year six-month period. Gross margin for the prior year quarter and six-month period was adversely impacted by inventory write-down of $0.6 million associated with the facility closing.
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