LFL Releases Third Quarter Financial Results

Mike Walsh, President and CEO of LFL

“During the third quarter, our team executed with discipline and delivered solid results in an environment that remained challenging. Revenue was 0.9% lower than a strong third quarter last year, when furniture sales grew 11.2%. Delays in planned inventory receipts held back furniture sales. The appliance category rebounded in both our retail and commercial channels, and mattresses grew for a third consecutive quarter on the continued strength of our focused-assortment playbook. Gross margin held at 44.5%, in line with last year, as improved margin rates across our categories and our higher-margin insurance and delivery services offset a less favourable sales mix.”

Mike Walsh, President and CEO of LFL

“While consumers remain cautious, they are still shopping, but with a sharper focus on value, and we are planning the balance of the year prudently. Our inventory position has improved, however, supply chain delays continue to be a factor into Q4. In markets like this, our priority is to gain share and come out of the cycle stronger. Our scale, national distribution network and rock-solid balance sheet, with $622.5 million in unrestricted liquidity, position us to continue delivering value to Canadians and long-term returns for our shareholders. Earlier today, our Board of Directors approved changes to our senior management team. Luke Leon has been appointed to the role of Chief Operating Officer of the LFL Group effective December 1, 2026. Luke's 30 years of experience and deep understanding of the organization will serve him well in his new role. I am very confident in our ability to continue improving every facet of the organization. While the current retail environment presents ongoing challenges, we have strong confidence in our senior leadership team and its ability to navigate those challenges, strengthen our company, and drive continued progress and future accomplishments.”