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

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