Flexsteel Industries, Inc. Reports Fiscal First Quarter 2027 Results; Continued Sales and Order Growth Driven by Strategic Initiatives
Key Highlights
- ➤Q1 net sales $114.0 million, up 3.2% year over year
- ➤Q1 GAAP operating income $6.9 million, down from $9.0 million
- ➤Q1 diluted EPS $1.24, versus $1.31 in the prior-year quarter
- ➤Orders increased 5%; ending backlog grew 8.2% year over year
- ➤Q2 sales forecast $119.5-$123.0 million; operating margin forecast 6.5%-7.0%
Expert Statements
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“I'm pleased with our first quarter results and the continued momentum of our growth strategies despite a challenging macroeconomic environment”
Derek Schmidt, CEO 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.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“Encouragingly, orders increased 5 percent and our ending backlog grew 8.2 percent versus the prior year period, reinforcing our confidence in the underlying strength of our business.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“From a profitability standpoint, we delivered a GAAP operating margin of approximately 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.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“Excluding this impact, operating margin was in line with our expectations for the quarter and reflected solid operating performance considering the significant inflationary pressures currently impacting our industry.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“Ocean transportation rates have nearly doubled over the last six months, while sharply higher fuel prices and rising material costs continue to pressure margins.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“Our teams have mitigated a meaningful portion of these headwinds through cost savings initiatives, productivity improvements, and disciplined product portfolio management.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“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.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“What gives me the greatest confidence in Flexsteel's future is the progress we're making strengthening our competitive advantages through consumer insights, innovation, and disciplined execution.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“These capabilities are increasingly working together as an integrated system, enabling us to translate consumer needs into differentiated products and compelling growth opportunities.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“While the external environment may remain difficult, we are not standing still.”
Derek Schmidt, CEO of Flexsteel Industries, Inc.
“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.”
Flexsteel Industries, Inc. Reports Fiscal First Quarter 2027 Results; Continued Sales and Order Growth Driven by Strategic Initiatives
Flexsteel Industries, Inc. (NASDAQ: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported first quarter fiscal 2027 results.
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