Furniture builder Flexsteel Industries Inc. reported slight declines in sales and earnings for its second quarter, ended Dec. 31.
Net sales were $118.5 million for the quarter compared to record revenue of $125.4 million in the prior year quarter, a decrease of 5.5%. For the six months, the Dubuque, Iowa-based firm posted sales of $230.6 million, representing an 8.5% decrease from a year ago.
Second-quarter net income was $5.3 million, or 68 cents per share, compared to $5.4 million, or 69 cents per share in the prior year quarter. For the six months, net income was $10.1 million, or $1.29 per share, compared to $11.1 million, or $1.43 per share, in the prior year period.
Gross margin as a percent of net sales for the quarter was 22.6% compared to 22.1% for the prior year quarter and 23.1% compared to 22.1% for the six months. Gross margin improvements were partially offset by lower absorption of fixed costs on lower volume.
Looking forward, the Company believes that demand for furniture products in the United States will continue to be sporadic due to economic uncertainty for the remainder of the fiscal year. Net sales for the third and fourth fiscal quarters are expected to be comparable to prior fiscal year quarters. The company continues focusing on streamlining product introductions to increase sales and controlling discretionary spending.
For the full report click here.