DUBUQUE, Iowa-Although sales improved at a healthy rate, Flexsteel’s fourth-quarter net income fell 3.6 percent to $4.2 million. For the fiscal year ending on June 30, net income rose 0.6 percent to $13.2 million, the highest the company has ever reported.
Net sales in the quarter increased 8.6 percent to $102 million. Most of the gain came from residential net sales, which rose 10 percent from the prior year. For the fiscal year, net sales were up 9.7 percent to $386.2 million, with residential sales rising 13 percent from the prior year.
Gross margin in the quarter dropped 200 basis points to finish at 23.3 percent. Selling, general and administrative expenses increased 2.4 percent in dollars but fell back 110 basis points as a percentage of sales, to 17 percent.
A company statement said Flexsteel expects “moderate top-line growth” for the rest of this calendar year. The company also projects continued increases in residential sales, led by higher demand for upholstery products.