Business
Flexsteel Industries, Inc. Reports Fiscal First Quarter 2022 Results
DUBUQUE, Iowa--(BUSINESS WIRE)-- Flexsteel Industries, Inc. (NASDAQ:FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers and
About this update from Flexsteel Industries, Inc.
[{"type":"text","content":" DUBUQUE, Iowa--(BUSINESS WIRE)--\nFlexsteel Industries, Inc. (NASDAQ:FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers and online marketers of furniture products in the United States, today reported first quarter fiscal 2022 financial results.\n\nHighlights for the First Quarter Ended September 30, 2021\n\n\nNet sales for the quarter increased 30.8% to $137.7 million compared to $105.2 million in the prior year quarter.\n\n\nRetail home furnishings backlog of $133 million for the quarter up 56.5% compared to $85 million in the prior year quarter.\n\n\nGAAP net income per diluted share of $0.61 for the current quarter compared to $0.49 in the prior year quarter.\n\n\nNon-GAAP1 net income per diluted share of $0.48 for the quarter compared to $0.80 in the prior year quarter.\n\n\n1 GAAP to non-GAAP reconciliations follow the financial statements in this press release.\n\nManagement Commentary\n\n“In spite of continued global supply challenges, we executed well during the quarter and delivered strong sales growth of 30.8% and solid profit results in line with our guidance,” said Jerry Dittmer, President and CEO of Flexsteel Industries. “We are competing well and gaining market share. We recently showcased our new brand refresh with visual and experiential alignment across our showroom, website, product displays and marketing assets. This was well received by consumers, customers, suppliers and Flexsteel associates, earning excitement about our strong path forward. We built outstanding growth momentum throughout fiscal 2021, and we’ve carried that momentum into fiscal 2022 and intend to continue this trajectory.”\n\n“While our growth prospects are encouraging, we are navigating significant global supply chain headwinds in the near-term which will adversely impact profit results at least for the first half of fiscal 2022. First, ocean container rates have climbed to historical highs given large imbalances between supply and demand, and we anticipate rates will remain elevated through the first half of calendar 2022 or potentially longer. While we are taking actions to pass along these increased costs to the market if we can, consumer price sensitivity and the lag in price realization are creating pressure on gross margins near-term. Second, ancillary charges associated with ocean containers, such as d...