DUBUQUE, Iowa-Flexsteel Industries set new marks for net income and net sales in its third quarter ending on March 31.
Net income totaled $4.4 million, up 41.8 percent from the third quarter of last year. Net sales in the quarter increased 12.4 percent to finish at $110.5 million. The company reported gains of 16 percent in residential sales and 11 percent in commercial sales, thanks to strong sales in upholstered, ready-to-assemble and hospitality products.
Flexsteel also set new records for net income ($9.4 million) and sales ($327.4 million) for the first nine months of the fiscal year.
Gross margin in the quarter was down 56 basis points to 22.7 percent, due primarily to price discounting on certain casegoods to address changing customer requirements. Selling, general and administrative expenses edged up 2.7 percent in dollars but dropped 157 basis points as a percentage of sales, to 16.7 percent.
Flexsteel said in its statement on the results that it expects top-line growth for the fourth quarter as well, given its existing strong order backlog and positive order trends. Upholstered and ready-to assemble products should continue to grow sales in the residential sector, the company said.