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Leon's Furniture (LNF) investor relations material
Leon's Furniture Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
System-wide sales grew 3.7% year-over-year in Q3 2025, reaching $808.4 million, with strong performance in furniture and commercial appliances despite a pressured retail environment.
Revenue increased 4.1% to $678.7 million, driven by higher furniture and appliance sales, partially offset by declines in mattresses and electronics.
Adjusted diluted EPS increased 20.4% year-over-year to $0.65, supported by disciplined execution in sourcing, category management, and cost control.
Omnichannel strategy and digital ecosystem contributed to higher conversion rates and average transaction values.
Unrestricted liquidity stood at $549.6 million at quarter-end.
Financial highlights
Same-store sales rose 3.9% year-over-year in Q3 2025.
Gross profit margin expanded by 79 basis points to 44.59%, reflecting higher-margin furniture sales and improved sourcing.
Adjusted diluted EPS reached $0.65, up 20.4% from the prior year.
SG&A as a percentage of revenue improved by 14 basis points to 35.51%.
Adjusted EBITDA for Q3 2025 was $89.5 million, compared to $79.5 million in Q3 2024.
Outlook and guidance
Management expects the retail environment to remain highly promotional into Q4 and early 2026, with continued focus on value and market share gains.
Consumer confidence and discretionary spending expected to remain selective into Q4 and early 2026.
Canada Post strike poses near-term headwinds for promotional events, with potential impact if it continues through year-end.
Revenue from developers expected to moderate in 2026 as new construction slows; focus shifting to replacement market.
Management remains committed to driving growth over a three- to five-year horizon, despite anticipated moderation in commercial business.
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