by Fiscal Q1 2027 Sales totaled $114 million compared with $110 million last year
DUBUQUE, Iowa — Flexsteel Industries, Inc. reported a 3.2% increase in net sales for its first fiscal quarter ended Sept. 30, including a 5.1% increase in net sales of Flexsteel branded product for the same period.
Net sales for the quarter totaled $114 million compared with $110 million the same period last year, marking the company’s 12th consecutive quarter of sales growth.
Of this, $112.6 million was revenue for branded product, compared with $107.1 million last year, a 5.1% increase. Sales in its Homestyles ready-to-assemble product mix was $1.4 million compared with $3.3 million last year, a 57.6% decrease.
Net income totaled $5.4 million, or $1.24 per share, compared with $7.3 million, or $1.31 per share the same period last year. Operating income totaled $6.9 million, or 6% of net sales compared with $9 million, or 8.1% of net sales last year.
Gross profit totaled $25.1 million, or 22% of sales, compared with $25.9 million, or 23.5% of net sales last year. SG&A expenses during the quarter totaled $18.2 million, or 16% of sales, compared with $17 million, or 15.4% of sales last year.
“I’m pleased with our first quarter results and the continued momentum of our growth strategies despite a challenging macroeconomic environment,” said Derek Schmidt, chief executive officer of Flexsteel Industries, Inc. “Net sales increased 3.2 percent compared to the prior year, toward the upper end of our guidance range, marking our twelfth consecutive quarter of year-over-year growth. Sales of Flexsteel branded products grew approximately 5 percent, while sales in our Homestyles ready-to-assemble category, which we are exiting, were down $1.9 million or 57% compared to the prior year quarter.”
“Encouragingly, orders increased five percent and our ending backlog grew 8.2 percent versus the prior year period, reinforcing our confidence in the underlying strength of our business,” he added. “New product introductions, strategic account share gains, and continued expansion in health and wellness remain strong contributors to our growth, providing further evidence that our strategic investments are strengthening our competitive position.”
He also noted that the company delivered a GAAP operating margin of about 6 percent, “which included a $0.8 million or 70 bps unfavorable foreign currency translation impact related to our peso-denominated asset exposure in Mexico.”
Schmidt said that minus this impact, the company’s operating margin was in line with expectations and reflected strong operating performance given the significant inflationary pressures impacting the industry.
“Ocean transportation rates have nearly doubled over the last six months, while sharply higher fuel prices and rising material costs continue to pressure margins,” he said, adding, “Our teams have mitigated a meaningful portion of these headwinds through cost savings initiatives, productivity improvements, and disciplined product portfolio management. Looking ahead, we expect the operating environment to remain challenging as consumer confidence, affordability constraints, geopolitical uncertainty, and evolving tariff policies continue to weigh on industry demand and costs.”
He also cited other initiatives, including new products in the wellness, immersive seating and case goods segments launched at the October High Point Market that aim to boost the company’s growth prospects.
“While the external environment may remain difficult, we are not standing still,” he said. “We are strengthening the core capabilities that have made Flexsteel a trusted brand for generations while creating new reasons for consumers and retailers to choose us. With a strong balance sheet, disciplined operating model, and clear strategic priorities, we remain confident in our ability to continue gaining share and creating sustainable long-term shareholder value.”
