Flexsteel Sales Gain 19 Percent in Q2

FlexsteeDUBUQUE, Iowa-Flexsteel Industries posted a 19 percent gain in its second-quarter net sales, to $112.5 million, part of a record-breaking 17 percent increase in net sales for the first half of its fiscal year.

Net income for the quarter, which ended on Dec. 31, fell 60 percent to $1.2 million. Much of this falloff came about from a $6.3 million settlement paid in a civil litigation in Indiana, part of an agreement whose terms are otherwise confidential.

Selling, general and administrative expenses edged up 1.1 percent in dollars but declined 288 basis points as a percentage of sales, to 16.3 percent. Gross margin was off 89 basis points to 23.2 percent, taking a hit from price discounting on certain casegoods.

A Flexsteel statement said the company expects its top-line growth to continue for the rest of fiscal 2014. Residential growth should be led by increased demand for upholstery and ready-to-assemble products.