The following is a summary of the Flexsteel Industries, Inc. (FLXS) Q3 2024 Earnings Call Transcript:
Financial Performance:
Flexsteel reported an 8.2% sales growth in Q3 compared to the prior-year quarter, leading to increased operating income notwithstanding the restructuring costs.
Net sales for the quarter were $107.2 million, slightly above the forecasted guidance.
Sales orders for the quarter were $111.5 million, up by 12.3% from the prior-year quarter.
The gross margin improved to 21.7% mainly due to cost savings, operational execution, and pricing discipline.
Business Progress:
Flexsteel attained growth in both its core business and market expansion initiatives, planning for more gains into fiscal 2025.
The CEO, Jerry Dittmer, is set to retire at the end of 2024 and Derek Schmidt will assume the role of CEO.
The company showed growth momentum at the High Point Market and intends to bring compelling new product introductions.
Investment in improvements in customer experience and innovation are planned to fuel long-term business growth.
Flexsteel is committed to achieving an 8% operating income by maintaining a 23% gross margin and managing SG&A in the mid-15% range.
The backlog at the end of the quarter stood at $61.5 million, representing approximately $6.5 million growth over the end of Q2.
The company plans to grow its independent retail channel and expects SG&A as a percent of sales to decline as the top-line grows faster.
While the homestyles brand experienced a decline, new case goods products are expected to provide a growth lever in the longer term.
The company aims to gain share by acquiring additional floor placements within existing retailers and enhancing their product offerings.
More details: Flexsteel Industries IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.