by Company also remains profitable with $6.6 million in net income for the 2nd quarter and $14 million in net income for the 1st half
DUBUQUE, Iowa – Full-line furniture resource Flexsteel Industries reported a 9% increase in sales for the second quarter and a 7.6% increase in net sales for the first half ended Dec. 31, 2025.
Sales for the quarter totaled $118.2 million, up 9% from $108.5 million the same period a year earlier. The company said the increase resulted from “higher unit volume in sourced soft seating products and pricing from tariff surcharges, partially offset by lower unit volume in our made-to-order soft seating products and Homestyles branded ready-to-assemble category.”
Net income for the second quarter was $6.6 million, or $1.18 per share, compared with $9 million, or $1.62 per share, the same period last year.
It reported gross profit of $26.8 million compared with $22.8 million the same period last year. Operating income totaled $9 million, or 7.6% of net sales, compared with $11.7 million, or 10.7% of net sales, the same period a year earlier.
SG&A expenses totaled $17.8 million, or 15% of sales, compared with $16.1 million, or 14.9% of net sales, the same period last year.
“I’m pleased with our second-quarter results and the way our teams continue to execute in a highly dynamic environment,” said Derek Schmidt, chief executive officer of Flexsteel Industries. “Despite uneven industry demand and a rapidly evolving tariff landscape, we delivered 9% year-over-year sales growth and meaningful profit improvement in the quarter. Our performance reflects the quality and balance of our growth, driven by new product introductions, share gains with strategic accounts, and continued progress in case goods and health and wellness. Just as importantly, our results demonstrate the operating discipline and agility we’ve built into the organization over the past several years.”
He said that while macroeconomic conditions and consumer demand remain inconsistent, the company is managing such challenges with a clear focus on execution.
“Our margin performance this quarter reflects structural improvements in how we operate, including productivity gains, cost discipline and thoughtful product portfolio management,” he said. “Tariffs continue to represent a significant source of uncertainty for the industry, and while we expect near-term pressure on demand and margins as higher-cost inventory flows through, we are actively managing pricing, costs and our supply chain to mitigate the impact over time.”
For the first half, the company reported $228.7 million in net sales compared with $212.5 million the same period a year earlier, a 7.6% increase.
Net income totaled $14 million, or $2.49 per share, compared with $13.2 million, or $2.38 per share, the same period the year before.
Gross profit in the first half totaled $52.8 million, compared with $45.2 million a year earlier. Operating income totaled $18 million, or 7.9% of net sales compared with $17.7 million, or 8.3% of net sales, a year earlier. SG&A expenses totaled $34.8 million, or 15.2% of net sales compared with $32.5 million, or 15.3% of net sales, a year earlier.
The company reported ending the quarter with a cash balance of $36.8 million and working capital (current assets less current liabilities) of $126 million. It also reported the availability of approximately $54.1 million under its secured line of credit.
Capital expenditures for the six months ended Dec. 31, 2025, were $3.1 million.
“Flexsteel enters this period with a strong balance sheet, solid profitability and a clear strategic roadmap,” Schmidt added. “We remain confident in our ability to adapt quickly to external change while continuing to invest in innovation, consumer-led product development and our retail partnerships. These capabilities position us well to navigate near-term volatility, continue gaining share and drive sustainable long-term growth and shareholder value.”
