Canada’s largest home retailer posts best-ever second quarter

TORONTO — Leon’s Furniture Ltd. reached total system sales of a record C$784.6 million for the second quarter, which ended June 30, up 9.8% from C$714.4 million in the same period of 2021.

Revenues for the quarter were C$647 million, an increase of 9.9% over C$588.5 million year-over-year, and same-store sales were up 10%, hitting C$631.8 million for the period. Also, e-commerce sales accounted for 12% of the revenue for the quarter.

Net income reached C$50.1 million, or C74 cents diluted earnings per share, up from C$46 million or C58 cents EPS for the year-ago period.

“We are very pleased with our team’s performance during Q2. Their combination of dedication and hard work enabled LFL to produce the best second quarter results in the Company’s history, with strong growth over Q2 2021, which was itself a record quarter,” said Mike Walsh, president and CEO. “Our strategic approach to generating sales, while prudently managing costs, resulted in sales growth of 10%, without any significant impact on our gross margin, which I consider proof of LFL’s ability to execute, even in an inflationary environment.

“As a result of these efforts, along with a culture of cost control, efficiency and the company’s C$200 million substantial issuer bid that closed earlier this year, adjusted diluted EPS grew by 20.7%.”

Walsh noted that inflationary pressures remain a focus for the company, and he said that the quarter’s results show the impact of the company’s efforts to actively manage the daily flow of inventory.

The company said in its quarterly statement that “although it is difficult to gauge future consumer confidence and what impact it may have on retail, we remain cautiously optimistic that our sales and profitability will increase.”

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, The Brick’s Midnorthern Appliance banner and Leon’s Appliance Canada banner. The company has 306 retail stores across Canada and operated five websites.

See also: Walsh succeeds Edward Leon at Canadian retailer

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