Flexsteel Industries (FLXS) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net sales rose 3.2% YoY to $114.0 million, the 12th consecutive quarter of YoY growth; orders rose 5% and ending backlog increased 8.2%.

• GAAP operating income declined to $6.9 million from $9.0 million, while diluted EPS was $1.24 versus $1.31 YoY.

Financial highlights

• Net income was $5.4 million versus $7.3 million YoY; diluted EPS was $1.24 versus $1.31.

• Revenue was $114.0 million versus $110.4 million YoY; GAAP operating income was $6.9 million versus $9.0 million.

• Gross margin fell 150 bps YoY to 22.0%; SG&A rose to 16.0% of sales from 15.4%, reflecting strategic investments.

Outlook and guidance

• Q2 FY2027 sales growth is forecast at 1%–4% YoY, or 3.5%–6.5% excluding the Homestyles brand exit; GAAP operating margin is forecast at 6.5%–7.0%.

• Consumer demand and logistics and material cost inflation driven by elevated energy prices are the largest outlook variables.