by Q4 increase marks 7th consecutive quarter of year-over-year sales growth
DUBUQUE, Iowa — Full-line furniture resource Flexsteel Industries reported an increase in Q4 and full-year sales for the period ending June 30.
Fourth-quarter revenues were up 3.4% to $114.6 million, compared with $110.8 million for the same period last year, marking its seventh consecutive quarter of year-over-year sales growth. Net sales for the full year rose 6.9% to $441.1 million compared with $412.8 million last year.
The company also reported net income of $10.7 million, or $2.03 per share, for the quarter, compared with $4.9 million, or 95 cents per share, the same period last year.
Operating income for the fourth quarter totaled $14 million, compared with $7.6 million last year, and gross profit totaled $27.4 million, or 23.9% of net revenue, compared with $23.6 million, or 21.3% of net revenue, the same period last year.
SG&A expenses for the fourth quarter totaled $17.2 million, or about 15% of net sales, compared with $18.9 million, or 17% of net sales, a year earlier.
“Our strategies are working and drove strong results in the quarter,” said Derek Schmidt, chief executive officer of Flexsteel Industries. “While market conditions and macroeconomic uncertainty remain industry headwinds, we continued our growth momentum and delivered 3.4% sales growth in the quarter, which represents our seventh consecutive quarter of year-over-year growth. The sources of our growth remain diversified across our core business and new or expanded markets, and our continued investments in new product development, innovation, customer experience and marketing are enabling our share gains. Additionally, we continue to drive meaningful profitability improvement and delivered an adjusted operating margin of 9% in the quarter, which represents our ninth consecutive quarter of year-over-year improvement and a 340 basis point increase compared to the prior year. Sales growth, operational productivity and product portfolio management remain our key profit improvement levers.”
For the full year, the company reported $20.2 million in net income, or $3.84 per share, compared with $10.5 million, or $2.04 per share, last year.
Operating income for the year totaled $26.6 million, compared with $17.1 million a year earlier, and gross profit totaled $97.9 million, or 22.2% of net sales, compared with $87.2 million, or 21.1% of net sales, a year earlier.
SG&A expenses totaled $66.7 million for the full year, or 15.1% of net sales, compared with $70.4 million, or 17% of revenues, last year.
“I’m proud of the team’s accomplishments in fiscal year 2025 and enthusiastic about the company’s prospects for continued success,” Schmidt added. “For the year, we delivered sales growth of 7% in a challenging industry environment, expanded adjusted operating margins by 270 basis points to 7.1%, increased adjusted operating profit by 71% to $31.2 million, delivered record adjusted earnings per diluted share of $4.17, and generated $45.3 million of free cash flow, which enabled us to increase our dividend twice in the past 12 months and build a healthy cash balance of $40 million.”
“While difficult industry conditions are expected to persist in the near term, our team remains intensely focused on executing our growth strategies and profitability improvement initiatives to deliver strong financial results in fiscal year 2026,” he said. “Tariffs represent a major risk to both demand and margins in the new year. To overcome the demand risk, we will continue delivering an exceptional customer experience, differentiated and innovative new products, high-ROI marketing investments, and deeper penetration into new or expanded markets. The margin risk from tariffs, notably the 20% tariff on imports from Vietnam, requires a multifaceted approach to mitigate, including supply chain adjustments, new cost savings initiatives and limited pricing actions. We have strong partners in our value chain and are working collaboratively with them to address the effect of tariffs while minimizing the impact on consumer prices and demand. Our team is agile and is well positioned to navigate the new tariff environment while effectively executing our growth strategies.”
The company also said it ended the quarter with a cash balance of $40 million, working capital of $110.4 million and the availability of about $54.1 million under its secured line of credit.
It also noted that capital expenditures for the year were $3.3 million.
