Flexsteel Net Rises 5.8 Percent in Third Quarter
DUBUQUE, Iowa-Net income for furniture manufacturer Flexsteel increased 5.8 percent, to $2.5 million, in its fiscal third quarter, which ended on March 31.
The company said its net sales gained 4.6 percent in the quarter, to $85.2 million, helped along by a 5.6 percent increase in net sales by its residential segment. While selling, general and administrative expenses picked up 3.1 percent on a dollar basis, they fell 24 basis points, to 17.1 percent, as a percentage of net sales.
Rising material costs lowered Flexsteel's gross margin by 75 basis points to 21.4 percent. In its statement on the quarterly results, the company said it expected to feel the pressure from continuing raw-materials price increases, in particular from steel, polyester fiber, fabric and leather, and finished products. "We are implementing price increases to help mitigate the impact of the increased material and finished-product costs," the company said. "However, we will continue to experience downward pressure on gross margin until we realize the full benefits of these sell-price increases and see an end to cost increases."