Flexsteel Net Booms 36 Percent in Third Quarter
DUBUQUE, Iowa-With healthy gains in sales and margins, Flexsteel Industries posted a whopping 36 percent increase in net income in its fiscal third quarter, to $3.3 million.
Net sales picked up 7.6 percent, to $91.6 million, in the quarter, which ended on March 31. Flexsteel's top line was bolstered by a rise of 9.6 percent in residential net sales. Gross margin added 274 basis points to finish at 24.1 percent, which the company credited to better absorption of fixed costs and the adverse impact of raw-materials cost increases in last year's third quarter.
Selling, general and administrative expenses rose 17 percent in dollar terms and 143 basis points as a percentage of sales, to 18.5 percent.
For the rest of calendar 2012, Flexsteel predicted that sales would rise modestly. The company noted that, as reflected in its results in the third quarter, orders for residential upholstered products have improved significantly, and said it expects this trend to continue through the end of the calendar year.