DUBUQUE, Iowa - Furniture manufacturer Flexsteel Industries, Inc. reported third quarter sales of $120.8 million. Though it reflects a 3.7 percent decline, compared with past year, it is against record sales, and Flexsteel says it is on track to record its second highest annual sales in its history.
| 2017 | 2016 |
$ Change |
% Change | |||||||||||||||
| Residential | $ | 102.6 | $ | 105.8 | $ | (3.2 | ) | -3.0 | % | |||||||||
| Contract | 18.2 | 19.6 | (1.4 | ) | -7.1 | % | ||||||||||||
| Total | $ | 120.8 | $ | 125.4 | $ | (4.6 | ) | -3.7 | % | |||||||||
Despite the decline, Flexsteel says demand for furniture in the United States has improved as consumer confidence has stabilized. Net sales for the fourth fiscal quarter are expected to remain steady with the current quarter, which would result in the second highest fiscal year net sales compared to the prior year record. Flexsteel says it continues focusing on streamlining product introductions to increase sales and controlling discretionary spending. (NASDAQ:FLXS)
Through March 31, 2017, investment in property and plant includes $9.2 million for business information software and development. Flexsteel says it has completed the design phase of the project and has progressed to the first of three development and testing cycles. Following testing, it will enter the training and readiness phase of the project for associates, customers and suppliers. When this phase indicates readiness, the business information system will be implemented. The Company anticipates this work can be completed during the fiscal year ending June 30, 2018.
For the remainder of fiscal year 2017, the company expects to have the following expenditures:
- $3.7 million for capital expenditures and $1.0 million as SG&A expense for upgrading the business information system to better meet market conditions, customer requirements and increase operating efficiency; and
- $1.0 million in operating capital expenditures.
Flexsteel Industries, Inc. was incorporated in 1929 and is one of the oldest and largest manufacturers, importers and marketers of residential and contract upholstered and wooden furniture products in the United States. Product offerings include a wide variety of upholstered and wood furniture such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs and bedroom furniture. Flexsteel products are sold in home, office, hotel, healthcare and other contract applications. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which other name “Flexsteel” is derived.
Have something to say? Share your thoughts with us in the comments below.