DUBUQUE, Iowa–Upholstery and wood-furniture manufacturer Flexsteel Industries logged in a 64 percent increase in net income in its first fiscal quarter ended Sept. 30, 2010, totaling $2.3 million.
The stronger bottom line was due to a net sales increase of 15 percent to $87.2 million, including an increase of 16 percent in residential sales. A company statement attributed the sales rise partly to a strong backlog at the beginning of the quarter.
Gross margin added 70 basis points to finish the quarter at 22.5 percent. Selling, general and administrative expenses rose 6 percent in the quarter, but declined 150 basis points as a percentage of sales to 17.1 percent.
Looking ahead to the next quarter, Flexsteel said its incoming order rate has slowed, consistent with the furniture industry as a whole.