Earnings Releases·Oct 26, 2026, 4:42 PM ET

Flexsteel Industries — Fiscal First Quarter 2027 Earnings Summary

Net sales increased 3.2% year-over-year to $114.0 million, though GAAP operating income and net income declined to $6.9 million (6.0% margin) and $5.4 million ($1.24 EPS) respectively, driven by a 150 basis point gross margin contraction from inflation and foreign currency impacts.
The company is exiting the Homestyles ready-to-assemble category, which saw a 57% sales decline, while Flexsteel branded sales grew 5.1% and order backlog rose 8.2% to 8.2%.
Management provided Q2 fiscal 2027 guidance for sales between $119.5 million and $123.0 million (1% to 4% growth) and an operating margin of 6.5% to 7.0%, citing continued challenges from elevated energy prices, logistics costs, and consumer affordability constraints.
Capital return activities included $2.2 million in share repurchases and $1.1 million in dividends, while the company maintains $4.4 million in cash and approximately $29.1 million in available credit.