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Leon’s reports banner 2016

 28 February 2017     Michael J. Knell 

TORONTO – This country’s largest full-line furniture, mattress and major appliance retailer saw earnings for both the fourth quarter and full 2016 year grow in the double digits as overall system wide sales grew by 5.1% and 5.2% respectively.

For the three months ending December 31, 2016, Leon’s Furniture Ltd – the publicly-held retailers parent company – reported total system-wide revenues of $704.7 million, a 5.1% gain over the $670.4 million reported for the same period of 2015.

Corporate store sales were $588.4 million, a 5.0% gain over the $560.2 million for the comparable period. Same store sales for the fourth quarter were up 1.1%.

Leon's added this store in Abbottsford, British Columbia to its network last September. It was part of a deal that saw Leon's take over eight former Sears Whole Home stores.Sales by its 100-unit franchise group totalled $116.4 million, up 5.7% from $110.1 million.

This resulted in adjusted net earnings of $34.7 million or 48 cents per share, compared to $30.6 million or 43 cents per share – up 11.6% on a per share basis.

For the entire year also ending December 31, 2016, total system-wide revenues were $2.53 billion, a 5.2% gain on the $2.41 billion for the prior year.

Corporate store sales rang in at $2.14 billion, gaining 5.5% on the $2.03 billion in 2015 as same store sales climbed 4.1% for the year.

Franchise store sales were $387.8 million, up 3.2% from $375.8 million.

Adjusted net earnings for the year were $86.8 million or $1.21 per share, compared to $73.7 million or $1.04 per share for the prior year – an uptick of 16.3% on a per share basis.

“Q4 marked a strong end to 2016 as the consistent execution of our strategy resulted in both record sales and profits for the company,” Edward Leon, president and chief operating officer of Leon’s said in a statement. “In 2016, we successfully grew same store sales for every quarter while improving cost controls throughout the organisation to drive operating leverage. We are proud of all of our associates, especially those who worked tirelessly to open nine new locations across Canada in the fourth quarter, resulting in a meaningful presence in key locations across Canada for both of our core banners.

“These initiatives combined with our strong market presence and national distribution network will enable us to continue to drive shareholder value going forward. In recognition of our record results and confidence in the future, we are happy to announce that the quarterly dividend will be increased by 20% from 10 cents to 12 cents," he added.

At the end of 2016, Leon’s operated a total of 305 corporate and franchise stores across the country under the following banners: Leon’s, Appliance Canada, The Brick, Midnorthern Appliance, The Brick Mattress Store, United Furniture Warehouse and The Brick Clearance Centre.

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This HGO article was written by:
Michael J. Knell
Michael J. Knell

Michael is the publisher and editor of Home Goods Online. A seasoned business journalist, he has researched and written about the furniture, mattress and major appliance industries in both Canada and the United States for the past three decades.


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