Flexsteel Industries Q4 sales edge up on soft seating demand
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FLXS
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Outlook for Q1 FY27
Flexsteel expects Q1 FY27 sales of $111 mln to $115 mln, up 1% to 4% vs. year ago
Company sees Q1 FY27 GAAP operating margin of 6.5% to 7%
Flexsteel says macro uncertainty, inflation, energy costs and trade policy to pressure demand and profitability
Q4 sales and earnings
US residential furniture maker's Q4 sales rose 0.7% year-over-year
Adjusted EPS for Q4 was $1.33, compared with $1.40 a year ago
Company completed $62.6 mln in share repurchases during Q4
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
$115.37 mln
$109.66 mln (2 Analysts)
Q4 Adjusted EPS
$1.33
$1.09 (2 Analysts)
Q4 EPS
$2.58
Q4 Net Income
$12.71 mln
Q4 Gross Margin
30.0%
Drivers of the quarter
Soft seating volume - Sales growth in Q4 was driven by higher unit volume from soft seating products, partially offset by declines in ready-to-assemble products
Tariff refunds - Gross margin benefited primarily from IEEPA tariff refunds received during the quarter
Growth initiatives - Health and wellness category, strategic account relationships, and recent product introductions contributed positively despite softer industry demand
Analyst coverage and valuation
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the home furnishings peer group is "hold."
Wall Street's median 12-month price target for Flexsteel Industries Inc is $73.50, about 0.4% below its August 14 closing price of $73.79
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago
