Leon’s Furniture Limited, Canada’s largest home retailer, announced Tuesday its financial results for the quarter ended December 31, 2024, indicating that system-wide sales were $806.2 million, a decrease of 3.2%.
But year-to-date system-wide sales increased 1.3%.
The company said revenue was $666.7 million, a decrease of 2.9%, mainly due to reduced furniture inventory caused by industry-wide overseas shipping delays. Same store sales decrease of 3.2%. Gross profit margin was 45.85%, a 91-basis points increase driven by rate improvements in the furniture and appliance categories, and favourable business mix.
It said adjusted net income totaled $67.4 million, an increase of 37.8%.
Financial Highlights – Year Ended December 31, 2024.
These comparisons are with the 2023 fiscal year.
- System-wide sales were $3,005.9 million, an increase of 1.3%.
- Revenue was $2,498.5 million, an increase of 1.8%.
- The Company generated furniture category growth of 2.3%.
- Same store sales increas of 1.5%.
- Gross profit margin was 44.39%, higher by 26 basis points primarily due to a favorable mix shift towards the higher-margin rate furniture category rate and a greater mix of furniture sales.
- Adjusted net income totaled $150.9 million, an increase of 6.6%. Excluding one-time gains from both periods, adjusted net income increased 5.4%.
Mike Walsh, President and CEO of LFL commented, “As I reflect on 2024, I am proud of our team’s success in navigating a challenging environment. The efforts of our associates coast-to-coast enabled LFL to deliver 1.8% revenue growth while the broader North American furniture retail industry reported sales declines. Despite industry-wide freight delays affecting inventory during the second-half of the year, and the loss of the key Canada Post marketing channel during the important holiday season, targeted pricing and promotional optimization enabled us to maintain order patterns and expand gross margins by 26 basis points. The combination of these initiatives and the strength and adaptability of our business model enabled us to contain expenses despite persistent operating cost pressures and resulted in 5.4% growth in adjusted diluted normalized EPS for the year. Most importantly, we ended 2024 with a rock-solid balance sheet with $513.2 million in unrestricted liquidity.
“Looking forward, with our inventory levels normalizing, and marketing channels restored, we are well positioned to continue building upon our 115+ year legacy of market share gains and profitability, leveraging our scale and omnichannel presence to deliver value to all Canadians. While less than 15% of our purchases come from the United States, we are watching the tariff situation and will adjust accordingly.”
Leon’s Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Its 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 299 retail stores from coast to coast in Canada under various banners. The company operates six websites: leons.ca, thebrick.com, furniture.ca, midnothern.com, transglobalservice.com and appliancecanada.com
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