Leon’s sees plus signs and black ink in Q1 earnings report

TORONTO — In its first quarter earnings report, Leon’s Furniture Ltd. reported increases in system-wide sales, revenue, same-store sales and net income for the period ended March 31.

Comparing with its results in the first quarter of 2023, Leon’s noted system-wide sales were C$677.7 million, an increase of 8.3%, and same-store sales were up 9%, bringing revenue for the period to C$562.3 million, an increase of 9.6%.

With 302 store locations and e-commerce sites, the company noted that it has seen continued momentum in both retail and commercial sales during the quarter, which it says was driven by strong growth in the furniture and appliance categories.

Adjusted net income for the quarter totaled C$16.4 million, an increase of 27.1%, or C24 cents per share, an increase of 26.3%.

The company noted in its earnings release that Leon’s unrestricted liquidity as of March 31 was C$374.2 million, including cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.

“In an environment that is proving challenging for many organizations in our sector, LFL generated outstanding top and bottom-line results,” said Mike Walsh, president and CEO, adding, “Our success at retail during the quarter was a direct result of the strategic decisions we made over a year ago to position the company for a value-focused environment. This further validates our consistent strategy to concentrate on driving higher returns on our existing assets, through four-wall execution, omnichannel and ancillary businesses, while only growing square footage where it truly makes sense to do so.”

Leon’s retail banners include: Leon’s; The Brick; Brick Outlet; and The Brick Mattress Store, as well as The Brick’s Midnorthern Appliance banner and Leon’s Appliance Canada banner. It operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.

See also:

  • Executive stepping down at Leon’s; interim replacement named
  • ‘Record revenues’ help Leon’s buck headwinds in Q4

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