by DUBUQUE, Iowa – Upholstery and case goods resource Flexsteel Inds. said it has opened a new 250,000-square-foot distribution center in Greencastle, Pa. that is expected to better serve its customers in the region.
The facility also will handle increase inventory levels to support growth, a key strategy the company has pursued amidst Covid-related supply chain disruptions in Southeast Asia.
The company said that it is building inventory in the distribution center in the coming months and that it is expected to be operational by February 2022. The leased facility will serve states in the Northeast, the Mid-Atlantic and the Ohio Valley, Flexsteel told Home News Now.
Company President CEO Jerry Dittmer discussed this development as part of the company’s fiscal first quarter 2022 earnings report released Monday.
According to the report, the company had net sales of $137.7 million during the quarter ended Sept. 30, up 30.8% compared to the $105.2 million reported in the same period last year.
The company said this was driven by a $35.7 million increase in sales of furniture sold through retail stores, up 40% from the prior year quarter. It was offset by a $3.2 million, or 19.7% decline in sales of ecommerce sales through its Homestyles division.
Flexsteel also reported net income of $4.35 million, or $.61 per diluted share for the quarter, compared to net income of $3.89 million, or $.49 per diluted share during the same period last year. The reported income included a $.15 million pre-tax restructuring expense primarily for facility maintenance and a pre-tax gain of $1.4 million with the sale of its manufacturing facility in Harrison, Ark.
Meanwhile the company’s retail home furnishings backlog rose to $133 million, compared to $85 million in the prior year quarter, a 56.5% increase.
However, the company said its inventory position improved during the quarter. It rose to $193.7 million, up from $161 million at the end of its fiscal year 2021 in June, and up $123.1 million, or 174.5% during the past 15 months.
“As a result of this strategic investment, our in-stock position and service levels have improved significantly at a time when the industry will likely be strained for inventories in the coming months given the slowdown of furniture production in Vietnam during August and September due to COVID-19 shutdowns,” Dittmer said in the earnings report, adding, “We’re excited about the long-term growth opportunities for the company, and we are making strategic investments to support our valued customers and realize our growth potential.”
The company continues to operate additional distribution centers in Lancaster, Pa., Huntingburg, Ind., Edgerton, Ks. and Riverside, Calif.
