Leon’s sees growth in Q2
TORONTO – Leon’s Furniture Limited (LFL), this country’s largest full-line furniture retailer reported upticks in sales and earnings for both the second quarter and the first half of 2017.
Total system sales for the three months ending June 30, 2017 were $636.1 million, up 4.9% from the $606.4 million for the same period of 2016.
Corporate store sales were $527.6 million compared to $516.2 million – an uptick of 4.1%. Same store sales edged forward a modest 1%.
Sales by its 99 franchise stores were $98.6 million, up 9.2% from $90.3 million.
Net earnings for the second quarter were $18.8 million or 26 cents per basic share, compared to $16.9 million or 24 cents per basic share for the comparable period – a gain of 8.3% on a per share basis.
“The second quarter provided further evidence that the consistent and successful execution of our strategy is translating into strong financial performance for shareholders,” LFL chief operating officer Edward Leon said in a statement. “Leon’s is Canada’s largest home furnishing retailer with bricks and mortar locations coast-to-coast and a growing significant online presence.
“The company is well-positioned to gain market share through its national distribution network, he continued, adding the company has taken possession of it new state-of-the-art distribution centre in Delta, British Columbia and expects to begin operations there next month.
“We are confident that the continued judicious implementation of our strategy will drive significant value for shareholders over time,” Leon said.
For the six months ended June 30, 2017, LFL system sales were $1.21 billion, a 5.0% gain over the $1.15 billion for the first half of last year.
Corporate store sales were $1.02 billion, a 4.3% gain on the $979.6 million recorded for the comparable period as same store sales advanced 1.1%.
Franchise store sales were $188.4 million, up 8.7% from $173.3 million.
Net earniings for the first half were $27.5 million or 38 cents per basic share, compared to $12.2 million or 17 cents per basic share last year – a gain of 123.5% on a per share basis.
During the first six months of the year, LFL closed a franchise operating under The Brick as well as a corporately owned Brick Mattress Store, bringing the total store count down to 303 from 305 at the beginning of the year.
Edward Leon told shareholders he was optimistic about the company’s performance for the rest of the year.
“With the expansion of nine new retail locations and our continuing strong growth in e-commerce, we expect to see continued growth in sales for 2017,” he said. “Along with the growth in sales, we intend to maintain gross margins and continue to drive efficiencies.”
LFL operates a total of six banners including: Leon’s, The Brick, Appliance Canada, The Brick Mattress Store, United Furniture Warehouse and The Brick Clearance Centre.