DUBUQUE, IA — Flexsteel Industries Inc. reported residential furniture net sales of $67.0 million for the second quarter ending Dec. 31, 2011, an increase of 5.4% compared to the same period in the year prior. Overall, the company recorded net sales of $85.0 million, up 2.6% from the previous year’s quarter.
However, for the six-month period, Flexsteel’s overall net sales declined 2.1%, to $166.5 million, while net income for the period was $5.3 million, up from $4.5 million for the prior year period. Residential net sales for the six months rose slightly, to $129.5 million compared to $128.8 million a year earlier. Commercial net sales meanwhile dropped 6.5% to $18.0 million.
Flexsteel said its outlook for the second half of fiscal 2012 looks to be modest for top line growth. “Our business continues to be adversely impacted by macroeconomic conditions such as high unemployment, limited job growth and a depressed housing market resulting in low consumer confidence levels. We expect orders for residential seating products to continue to perform slightly above prior year levels. Our commercial office business has picked up modestly as we enter the second half of the fiscal year,” the company said in a statement. Projections also call for “flat order trends for our vehicle and hospitality seating products for the remainder of the fiscal year.”
Flexsteel manufactures, designs and imports upholstered and wood furniture for the residential, hospitality, office, healthcare and recreational vehicle markets. In 2003, Flexsteel acquired DMI Furniture, now a wholly owned subsidiary with three divisions: Wynwood, Home Styles and DMI Commercial Office Furniture. Based in Louisville, KY, DMI also has a distribution location in Huntingburg, IN.
In September 2011, Flexsteel broke ground on a new corporate headquarters in Dubuque, IA. The company said approximately 100 employees will be relocated to the four-story, energy-efficient building which features 40,000 square feet of office space. In addition to corporate offices in Dubuque, Flexsteel has five manufacturing locations: Dublin, GA; Lancaster, PA; Riverside, CA; Harrison, AR; and Starkville, MS. The company has permanent showrooms in High Point, NC, and Las Vegas, NV.
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