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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 reached $808.4 million in Q3 2025, up 3.7% year-over-year, with strong performance in furniture and commercial appliances channels despite a pressured consumer environment and high promotional activity.
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, driven by sales strength, disciplined 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 increased 3.9% year-over-year, with system-wide sales up 3.7% and revenue up 4.1% for Q3 2025.
Gross profit margin expanded by 79 basis points to 44.59% year-over-year, reflecting higher-margin furniture sales and improved sourcing.
Adjusted EBITDA for Q3 2025 was $89.5 million, compared to $79.5 million in Q3 2024.
G&A/SG&A rate improved by 14 basis points to 35.51% of revenue, aided by lower retail financing fees.
Adjusted net income rose 19.1% to $44.3 million, and net income was $50.3 million, or $0.73 per diluted share, up 35.2% year-over-year.
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.
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 and property managers.
Growth rates in 2026 anticipated to moderate, especially in commercial business, but long-term focus remains on sustainable share gains.
Strategic investments will continue in omnichannel growth and cost management.
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