Flexsteel Q1 Sales Up 3.2% but Operating Income Falls to $6.9M on FX and Cost Pressure
FLXS has more than doubled off its 52-week low of $34.
Summary
Flexsteel posted Q1 FY2027 net sales of $114.0 million, up 3.2% year over year and near the top of its guidance range, marking a twelfth straight quarter of growth. But GAAP operating income fell to $6.9 million (6.0% of sales) from $9.0 million (8.1%) a year ago, and diluted EPS slipped to $1.24 from $1.31, with net income at $5.42 million. Management attributed roughly 70 bps of the margin hit to a $0.8 million unfavorable peso translation on Mexican assets, with ocean freight rates nearly doubling over six months and higher fuel and material costs adding pressure. Orders rose 5% and backlog grew 8.2%, while the Homestyles exit cut $1.9 million (57%) from sales. Q2 guidance calls for sales of $119.5-123.0 million (1-4% growth) and operating margin of 6.5-7.0%. The earnings call is October 27 at 8:00 a.m. Central.
At the time of this announcement, FLXS was trading at $82.55 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $337.8M. The 52-week trading range was $34.00 to $90.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: BusinessWire.