Latest news with #LeonsFurniture
Yahoo
3 days ago
- Business
- Yahoo
Leon's Furniture Second Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Leon's Furniture (TSE:LNF) Second Quarter 2025 Results Key Financial Results Revenue: CA$644.1m (up 4.3% from 2Q 2024). Net income: CA$31.8m (up 5.5% from 2Q 2024). Profit margin: 4.9% (in line with 2Q 2024). EPS: CA$0.47 (up from CA$0.44 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Leon's Furniture Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 2.1%. Looking ahead, revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Specialty Retail industry in Canada. Performance of the Canadian Specialty Retail industry. The company's shares are up 8.9% from a week ago. Risk Analysis Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Leon's Furniture (1 is concerning) you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
LFL Releases Strong Second Quarter Financial Results and Announces 20% Increase to the Quarterly Dividend
Toronto, Ontario--(Newsfile Corp. - August 7, 2025) - Leon's Furniture Limited (TSX: LNF) ("LFL" or the "Company"), today announced financial results for the quarter ended June 30, 2025. Financial Highlights - Q2-2025 These comparisons are with Q2-2024 unless stated otherwise. System-wide sales for the quarter were $771.5 million, an increase of 4.0%. Q2 Revenue was recorded at $644.1 million, an increase of 4.3%, driven by strong performance in the furniture category and commercial appliance business. Same store sales increased (1) 4.3%. Gross profit margin rate was 44.82%, a 92-basis points improvement driven by favourable retail category sales mix, improved furniture margin rate and favourable FX impacts on the settlement of US dollar payables. SG&A rate improved by 53 bps as a result of lower retail financing fees and improved operational leverage. Adjusted net income(1) for the quarter totaled $39.4 million, an increase of 31.8%. Adjusted Diluted EPS for the quarter was $0.57, an increase of 29.5%. On June 30, 2025, unrestricted liquidity was $454.5 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility. Subsequent to the quarter end June 30, 2025 the Company completed an amendment to its existing credit agreement to extend the term to May 31, 2027. Second Quarter 3-Year Financial Performance of LFL To view an enhanced version of this graphic, please visit: (1) For a full explanation of the Company's use of non-IFRS and supplementary financial measures, please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures". Mike Walsh, President and CEO of LFL, commented, "Our team delivered another solid performance in Q2, with system-wide sales increasing 4.0% and adjusted diluted earnings per share growing 29.5%, reflecting our continued organizational focus and disciplined execution. We drove top-line growth through our integrated omnichannel platform and high in-store conversion rates, while gaining market share in our core categories. Our strategic shift to a more focused assortment, combined with sourcing enhancements, drove favourable product mix and gross margin expansion. Operationally, targeted efficiency programs implemented over the past year continued to deliver SG&A leverage, demonstrating our ability to scale while controlling costs and driving bottom-line performance. While the consumer environment remains challenging, our scale, distribution capabilities, sourcing advantages, and robust balance sheet, including $454.5 million in unrestricted liquidity, helps us to execute consistently and capitalize on opportunities as they arise." Summary financial highlights for the three months ended June 30, 2025 and June 30, 2024 For theThree months ended(C$ in millions except %, share and per share amounts)June 30, 2025 June 30, 2024 $ Increase (Decrease) % Increase (Decrease) Total system-wide sales (1)771.5 742.1 29.4 4.0%Franchise sales (1)127.4 124.4 3.0 2.4% Revenue644.1 617.7 26.4 4.3%Cost of sales355.4 346.5 8.9 2.6%Gross profit288.7 271.2 17.5 6.5%Gross profit margin as a percentage of revenue44.82% 43.90% Selling, general and administrative expenses (2)234.3 228.0 6.3 2.8%SG&A as a percentage of revenue36.38% 36.91% Other income(1.4 )- (1.4 )100.0% Income before net finance costs and income tax expense55.8 43.1 12.7 29.5%Net finance costs(3.2 )(3.1 )(0.1 )3.2%Income before income taxes52.6 40.0 12.6 31.5%Income tax expense13.2 10.1 3.1 30.7%Adjusted net income (1)39.4 29.9 9.5 31.8%Adjusted net income as a percentage of revenue (1)6.12% 4.84% After-tax mark-to-market loss (gain) on financial derivative instruments (1)7.6 (0.3 )7.9 (2633.3%)Net income31.8 30.2 1.6 5.3% Basic weighted average number of common shares68,252,117 68,144,456 Basic earnings per share $ 0.47$ 0.44$ 0.03 6.8%Adjusted basic earnings per share (1) $ 0.58$ 0.44$ 0.14 31.8% Diluted weighted average number of common shares68,639,781 68,646,870 Diluted earnings per share $ 0.46$ 0.44$ 0.02 4.5%Adjusted diluted earnings per share (1) $ 0.57$ 0.44$ 0.13 29.5% Common share dividends declared $ 0.20$ 0.18$ 0.02 11.1%Same Store Sales (1) For theThree months ended(C$ in millions, except %)June 30, 2025 June 30, 2024$ Increase % IncreaseSame store sales (1)627.8 601.9 25.9 4.3% Historical Same Store Sales (1) as previously reported based on comparable quarters To view an enhanced version of this graphic, please visit: (1) Please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures". (2) Selling, general and administrative expenses ("SG&A") Revenue For the three months ended June 30, 2025, revenue was $644.1 million compared to $617.7 million in the second quarter of 2024 an increase of $26.4 million or 4.3%. The improvement was primarily driven by a 6.5% increase in furniture sales enabled by a stronger inventory position, improved assortment and more effective promotions. Additionally, the commercial appliance business grew by 10.5% as we continue to deliver on builder projects being finalized combined with an increased focus on growing the property replacement business as the builder pipeline begins to slow down. This was offset by low single digit declines in the mattress and electronics categories. Same Store Sales (1) Same store sales in the quarter increased by 4.3% compared to the prior year's quarter driven by factors discussed in the revenue section. Gross Profit The gross profit margin for the second quarter of 2025 was at 44.82% compared to 43.90% for the second quarter of 2024. This increase was primarily driven by favourable retail sales mix with the growth in the furniture category, improved furniture margin rate driven by assortment and sourcing improvements, and improved retail appliance margin rate due to higher volume rebates. Additionally, the Company benefitted from a gain on the revaluation of its US dollar payables due to a decline in the US dollar exchange rate within the quarter. This was partially offset by increased sales mix in the lower margin commercial channel. Selling, General and Administrative Expenses ("SG&A") The Company's SG&A as a percentage of revenue for the second quarter of 2025 was 36.38%, a decrease of 53 basis points over the second quarter of 2024. The improvement was driven by lower point-of-sale retail financing fees due to the lower Bank of Canada interest rates as compared to same quarter last year, increased operational leverage as a result of sales growth and lower advertising spend as a percentage of sales due to the timing of promotions. This was partially offset by higher recycling fees, professional fees and minimum wage impacts. Adjusted Net Income (1) and Adjusted Diluted Earnings Per Share (1) Adjusted net income for the quarter totaled $39.4 million, which represents an increase of $9.5 million over the prior year's quarter. The improvement is driven by strong sales and gross profit margin as outlined above and effective controls in SG&A spending. The Company recognized another $1.4 million of the remaining legal settlement with CURO Group Holding's Corp ("CURO"), as disclosed in Q4 2024. The adjusted diluted earnings per share in the first quarter of 2025 was $0.57 per share, an increase of 29.5% over the prior year's quarter. Net Income and Diluted Earnings Per Share Net income for the second quarter of 2025 was $31.8 million, or $0.46 per diluted earnings per share as compared to $0.44 per diluted earnings per share recorded in the prior year's quarter, an increase of $0.02 per share or 4.5% (net income of $30.2 million in the second quarter of 2024). During the quarter net income was impacted by an after-tax mark-to-market loss of $7.6 million on foreign exchange related derivates, an increase of $7.9 million over the prior year's quarter. (1) Please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures". Dividends As previously announced, the Company paid a quarterly dividend of $0.20 per common share on 8th day of July 2025. Today the Directors have declared an increase in the quarterly dividend of $0.04 to $0.24 per common share payable on the 7th day of October 2025 to shareholders of record at the close of business on the 9th day of September 2025. As of 2007, dividends paid by Leon's Furniture Limited are "eligible dividends" pursuant to the changes to the Income Tax Act under Bill C-28, Canada. Outlook Given the Company's strong and continuously improving financial position, our principal objective is to increase our market share and profitability. We remain focused on our commitment to effectively manage our costs but to also continuously invest in the business to drive growth initiatives that will drive more customers to both our online eCommerce sites and our 300 store locations across Canada. Non-IFRS Financial Measures The Company uses financial measures that do not have standardized meaning under IFRS and may not be comparable to similar measures presented by other entities. The Company calculates the non-IFRS financial measures by adjusting certain IFRS measures for specific items the Company believes are significant, but not reflective of underlying operations in the period, as detailed below: Non-IFRS Measure IFRS Measure Adjusted net income Net income Adjusted income before income taxes Income before income taxes Adjusted earnings per share - basic Earnings per share - basic Adjusted earnings per share - diluted Earnings per share - diluted Adjusted EBITDA Net income Adjusted Net Income The Company calculates comparable measures by excluding the effect of changes in fair value of derivative instruments, related to the net effect of USD-denominated forward contracts. The Company uses derivative instruments to manage its financial risk in accordance with the Company's corporate treasury policy. Management believes that excluding from income the effect of these mark-to-market valuations and changes thereto, until settlement, better aligns the intent and financial effect of these contracts with the underlying cash flows. Adjusted EBITDA Adjusted earnings before interest, income taxes, depreciation and amortization, mark-to-market adjustment due to the changes in the fair value of the Company's financial derivative instruments and any non-recurring charges to income ("Adjusted EBITDA") is a non-IFRS financial measure used by the Company. The Company considers adjusted EBITDA to be an effective measure of profitability on an operational basis and is commonly regarded as an indirect measure of operating cash flow, a significant indicator of success for many businesses. The Company's Adjusted EBITDA may not be comparable to the Adjusted EBITDA measure of other companies, but in management's view appropriately reflects the Company's specific financial condition. This measure is not intended to replace net income, which, as determined in accordance with IFRS, is an indicator of operating performance. The following is a reconciliation of reported net income to adjusted EBITDA: For theThree months ended Six months ended(C$ in millions)June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024Net income31.8 30.2 55.7 49.0Income tax expense10.8 10.2 18.3 15.6Net finance costs3.2 3.1 5.8 7.7Depreciation and amortization27.3 26.6 54.6 53.9Gain on settlement(1.4 )- (2.8 )-Mark-to-market loss (gain) on financial derivative instruments10.1 (0.3 )10.5 (3.6 ) Adjusted EBITDA81.8 69.8 142.1 122.6 Total System Wide Sales Total system wide sales refer to the aggregation of revenue recognized in the Company's consolidated financial statements plus the franchise sales occurring at franchise stores to their customers which are not included in the revenue figure presented in the Company's consolidated financial statements. Total system wide sales is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS, but it is a key indicator used by the Company to measure performance against prior period results. Therefore, total system wide sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers. We believe that disclosing this measure is meaningful to investors because it serves as an indicator of the strength of the Company's overall store network, which ultimately impacts financial performance. Franchise Sales Franchise sales figures refer to sales occurring at franchise stores to their customers which are not included in the revenue figures presented in the Company's consolidated financial statements, or in the same store sales figures in this MD&A. Franchise sales is not a measure recognized by IFRS, and does not have a standardized meaning prescribed by IFRS, but it is a key indicator used by the Company to measure performance against prior period results. Therefore, franchise sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers. Once again, we believe that disclosing this measure is meaningful to investors because it serves as an indicator of the strength of the Company's brands, which ultimately impacts financial performance. Supplementary Financial Measures The Company uses supplementary financial measures to disclose financial measures that are not (a) presented in the financial statements and (b) is, or is intended to be, disclosed periodically to depict the historical or expected future financial performance, financial position or cash flow, that is not a non-IFRS financial measure as detailed above. Same Store Sales Same store sales are defined as sales generated by stores, both in store and through online transactions, that have been open for more than 12 months on a fiscal basis. Same store sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers, however this measure is commonly used in the retail industry. We believe that disclosing this measure is meaningful to investors because it enables them to better understand the level of growth of our business. About Leon's Furniture Limited Leon's Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our retail banners include: Leon's; The Brick; Brick Outlet; and The Brick Mattress Store. Finally, with The Brick's Midnorthern Appliance banner alongside with Leon's Appliance Canada banner, this makes the Company the country's largest commercial retailer of appliances to builders, developers, hotels and property management companies. The Company has 300 retail stores from coast to coast in Canada under various banners. The Company operates six websites: and Cautionary Statement This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Leon's Furniture Limited's periodic reports including the annual report or in the filings made by Leon's Furniture Limited from time to time with securities regulatory authorities. This News Release may include certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify beneficial business opportunities, failure to convert the potential in the pursued business opportunities to tangible benefits to the Company or its shareholders, the ability of the Company to counteract the potential impact of pandemics on factors relevant to the Company's business, delays in obtaining or failures to obtain required shareholder and TSX approvals, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, tariffs and other external economic changes, delays in the development of projects, and those risks set out in the Company's public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. For further information, please contact: Victor DiabChief Financial Officer Leon's Furniture LimitedTel: (416) Jonathan RossLodeRock Advisors, Leon's Investor Relations (416) 283-0178 To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
29-07-2025
- Business
- CTV News
Saggy mattress at centre of B.C. dispute over denied warranty claim
A B.C. man who thought a 10-year-manufacturer's warranty entitled him to a refund when his mattress started to sag after less than a year won't get his money back, according to a recent decision from the Civil Resolution Tribunal. The ruling on the dispute was posted online Monday, offering a lesson to consumers in the importance of reading the fine print. Asghar Mohammad Chaudhry paid around $1,000 for the queen-sized Sealy mattress from Leon's Furniture Limited in 2023, and told the tribunal it started sagging within the first year of use. 'Sealy denied his warranty claim, saying he failed to meet certain conditions in how he used the mattress,' tribunal member Micah Carmody wrote in his decision. The customer was informed about the denial by a worker from Leon's Furniture Limited, who explained the reasons given by the manufacturer. 'First, his bed frame did not have a centre support, which Sealy said can cause mattress sagging issues. Second, his box spring was not a Sealy mattress box spring,' according to the decision. A copy of the warranty, submitted as evidence, spelled out how the mattress had to be used with one of these two types of bases for it to be covered, the decision noted. Chadhury filed a claim against the furniture store, arguing it was 'obligated, but failed' to provide detailed information about the warranty. 'In essence Mr. Chaudhry argues that Leon negligently misrepresented the mattress's warranty by failing to provide the full terms and conditions or at least explain its limitations at the time of purchase,' Carmody wrote. The store, in its response, told the tribunal it was the customer's responsibility to familiarize himself with the details of the warranty and said a warranty card was delivered to Chaudhry with the mattress. 'The issue before me is what was required of Leon as a mattress retailer,' Carmody explained, ultimately siding with the furniture store on the matter. 'I agree with Leon that it would be unreasonable to suggest that a salesperson should be required to take each customer through all the details of the manufacturer's warranty for each product the customer purchases,' the tribunal member wrote. The claim was therefore dismissed.
Globe and Mail
17-07-2025
- Business
- Globe and Mail
The Brick unveils its newest location in Richmond, BC with a Grand Opening Celebration
EDMONTON, Alberta, July 17, 2025 (GLOBE NEWSWIRE) -- The Brick, a wholly owned subsidiary of Leon's Furniture Limited ('LFL' or 'Leon's') (TSX: LNF), is thrilled today to announce the Grand Opening of our brand new concept, freshly designed 43,000-square-foot showroom in the heart of Richmond, BC. This exciting milestone marks another step forward in the continued growth of the brand, bringing an unparalleled shopping experience for home furniture, mattresses, appliances and electronics. 'We are proud to introduce this innovative showroom concept to the Richmond community,' said Darci Walker, President, The Brick. 'Our vision is to fulfill people's dreams for their homes. We showcase Canadian and globally inspired ideas for every home, creating a space where customers can explore, imagine and find pieces that transform their homes, all while 'Saving You More.' This showroom in Richmond, BC is a celebration of that vision and we can't wait to share it with everyone.' The showroom is located at 4751 McClelland Rd, Unit #2205 in Central at Garden City. The celebration begins with a Media Night tonight at 5 p.m., featuring an official ribbon-cutting ceremony, along with live music, traditional lion dancers, on-site caricature artists and an assortment of light snacks and refreshments. The official Grand Opening Day will take place Saturday, July 19, with festivities including an eye dotting ceremony, a lucky lettuce toss and complimentary Chinese bakery treats. A traditional lion dance performance will begin at 2 p.m. As part of this Grand Opening celebration, The Brick wants to offer everyone who visits the new showroom f rom July 17 to 31, 2025 an opportunity to win: A $10,000 shopping spree An 86-inch LG 4K Smart TV A Brooke 62-inch Contemporary Electric Fireplace A Kalora (rug of your choice) valued up to $500 An LG 7.5cu. ft. Smart Front Load High Efficiency Steam All-in-One Laundry set A Sealy Luxury Copper Collection Bronson king-size Eurotop mattress set Four Enzo 26-inch genuine leather accent chairs A Vega seven-piece dining package Customers are automatically entered with a purchase. To enter without purchase, please visit the store to scan an exclusive contest QR code, available with assistance from a sales associate. About The Brick Focused on Saving You More, The Brick offers a wide range of home furnishings, mattresses, electronics and appliances. Serving Canadians since 1971, The Brick is proud to be part of your community. The Brick is online at Keep up-to-date, and follow us on Twitter, Facebook and Instagram. About Leon's Furniture Limited: Leon's Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our retail banners include: Leon's; The Brick; Brick Outlet; and The Brick Mattress Store. Finally, with The Brick's Midnorthern Appliance banner alongside Leon's Appliance Canada banner, this makes the Company the country's largest commercial retailer of appliances to builders, developers, hotels and property management companies. The Company has 299 retail stores from coast to coast in Canada under various banners. The Company operates six websites: and
Yahoo
07-07-2025
- Business
- Yahoo
LFL Announces Date for 2025 Second Quarter Financial Results Release
Toronto, Ontario--(Newsfile Corp. - July 7, 2025) - Leon's Furniture Limited (TSX: LNF) ("LFL" or the "Company"), today announced that it plans to release its financial results for the second quarter ended June 30, 2025, after 12:00 p.m. ET on Thursday, August 7, 2025. About Leon's Furniture Limited Leon's Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our retail banners include: Leon's; The Brick; Brick Outlet; and The Brick Mattress Store. Finally, with The Brick's Midnorthern Appliance banner alongside Leon's Appliance Canada banner, this makes the Company the country's largest commercial retailer of appliances to builders, developers, hotels and property management companies. The Company has 298 retail stores from coast to coast in Canada under various banners. The Company operates six websites: and For further information, please contact: Victor DiabChief Financial Officer Leon's Furniture LimitedTel: (416) Jonathan RossLodeRock Advisors, Leon's Investor Relations Tel: (416) 283-0178 SOURCE Leon's Furniture Limited To view the source version of this press release, please visit Sign in to access your portfolio
