Furniture supplier Flexsteel Industries Inc. reported net sales of $100.2 million for its fourth quarter, ended June 30, compared to net sales of $113.1 million in the prior year quarter, a decrease of 11.4%.
The company reported a net loss of $19.9 million, or $2.52 per share, for the quarter compared to net income of $2.2 million, or 28 cents per diluted share, in the prior year quarter. The reported net loss included a $10 million pre-tax restructuring expense, a $7.7 million inventory impairment charge related to the company’s exit of certain product lines, a $2.6 million pre-tax business information system impairment charge and a $2.6 million pre-tax valuation allowance on foreign value-added tax (VAT).
Residential net sales during the quarter declined 11.1% compared to the prior year quarter. Home furnishings products were down 12% in sales and 15% in units due primarily to the adverse impact of the tariff implementation and resultant price increases on retail furniture imported from China. Home Styles products sold through ecommerce channels were down 5% versus the prior year quarter, but were up 24% sequentially to the fiscal 2019 third quarter.
Contract net sales fell 13%, resulting from the wind-down of the custom designed hospitality line and the completed exit of the commercial office line.
For fiscal 2019, net sales were $443.6 million compared to sales of $489.2 million in fiscal 2018, a 9.3% decline. The lower sales in fiscal 2019 were a function of the tariff, softer demand for furniture across the traditional retail channel, and the exit of previously mentioned product lines.
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