by Company also sees increases in quarterly and full-year net income, amid evolving tariff policies, geopolitical uncertainty and rising inflationary pressures
DUBUQUE, Iowa — Full-line furniture resource Flexsteel Industries reported an increase in Q4 and full-year revenue, despite ongoing challenges impacting the marketplace ranging from weak consumer confidence to the ongoing war in the Middle East.
The company said that fourth-quarter revenue for the period ended June 30 totaled $115.4 million, up .7% from $114.6 million last year, while revenue for the full year was up 4.1% to $459.2 million, from $441.1 million last year.
It also reported fourth-quarter net income of $12.7 million, or $2.58 per share, compared with $10.7 million, or $1.89 per share. For the full year, net income was $33.1 million, or $6.07 per share, compared with $20.2 million, or $3.55 per share.
Gross profit for the quarter totaled $34.6 million, or 30% of revenue, compared with $27.4 million, or 23.9% of revenue, the same period last year. Operating income for the quarter totaled $16.3 million, or 14.2% of revenue, compared with $14 million, or 12.2% of revenue, the same period last year.
For the full year, the company reported gross profit of $113.4 million, or 24.7% of revenue, compared with $97.9 million, or 22.2% of revenue, last year. Operating income for the full year totaled $42.6 million, or 9.3% of revenue, compared with $26.6 million, or 6% of revenue, last year.
SG&A expenses for the quarter totaled $18.3 million, or 15.8% of revenue, compared with $17.2 million, or 15% of revenue, last year. For the full year, they totaled $70.9 million, or 15.4% of revenue, compared with $66.7 million, or 15.1% of revenue.
“Fiscal year 2026 was a year of strong financial performance and meaningful strategic progress despite increasingly difficult industry conditions,” said Derek Schmidt, chief executive officer of Flexsteel Industries Inc. “For the year, we delivered sales growth of approximately 4% to $459 million, expanded adjusted operating margin to 7.5%, generated record adjusted earnings per diluted share of $4.94, and produced more than $47.5 million of free cash flow. Our strong cash generation and balance sheet enabled us to repurchase approximately $64 million of stock during the year and recently increased our dividend by 25%. These results were achieved despite a challenging demand environment, evolving tariff policies, geopolitical uncertainty and rising inflationary pressures, demonstrating the resilience of our business model and the agility of our organization.”
He said that while fourth-quarter sales were just slightly above the prior-year period, it marked the company’s 11th consecutive quarter of year-over-year growth, “driven by our key growth initiatives which continue to perform well. Our health and wellness category, strategic account relationships, and recent product introductions all delivered positive contributions during the quarter despite softer overall industry demand. Consumer demand for furniture remains pressured by weak confidence, affordability constraints, and macroeconomic uncertainty related to the ongoing conflict in the Middle East. Even consumers shopping at higher price points have become increasingly value-conscious in today’s environment. Despite these headwinds, we delivered strong adjusted operating margin of approximately 7.1% in the quarter, reflecting disciplined product portfolio management, operational productivity improvements, and prudent management of selling and administrative expenses while continuing to fund critical growth investments.”
