TORONTO—Leon’s Furniture Ltd. reached record total system sales of C$784.6 million for the second quarter, which ended June 30, up 9.8% from C$714.4 million during the same period of 2021.
Revenue for the quarter was C$647 million, an increase of 9.9% from C$588.5 million year-over-year, and same-store sales increased by 10%, reaching C$631.8 million for the period. Additionally, e-commerce sales accounted for 12% of revenue in the quarter.
Net income was C$50.1 million, or 74 cents Canadian diluted earnings per share, compared to C$46 million or 58 cents Canadian EPS for the prior year period.
“We are very pleased with the performance of our team during the second quarter. Their dedication and hard work enabled LFL to deliver the best second quarter results in the company’s history, with strong growth over the second quarter of 2021, which itself was a record quarter,” said Mike Walsh, President and CEO. “Our strategic approach to driving sales, while prudently managing costs, resulted in sales growth of 10%, with no significant impact on our gross margin, which I consider to be proof of LFL’s ability to execute, even in an inflationary environment.
“Thanks to these efforts, along with a culture of cost control, efficiency and the company’s significant C$200 million tender offer that closed earlier this year, diluted EPS adjusted increased by 20.7%.
Walsh noted that inflationary pressures remain a priority for the company, and he said the results for the quarter show the impact of the company’s efforts to actively manage the daily flow of inventory.
The company said in its quarterly statement that “while it is difficult to gauge future consumer confidence and the impact it may have on retail, we remain cautiously optimistic about our rising sales and our profitability”.
Leon’s Furniture Limited is a leading retailer of furniture, appliances and electronics in Canada. Its banners include: Leon’s, The Brick, Brick Outlet, The Brick Mattress Store, Brick’s Midnorthern Appliance banner and Leon’s Appliance Canada banner. The company has 306 retail stores in Canada and operates five websites.
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