Leon’s Furniture Limited announced Thursday financial results for the quarter ended March 31, 2025.
Financial Highlights – Q1-2025
These comparisons are with Q1-2024 unless stated otherwise.
- System-wide sales for the quarter were $696.1 million, an increase of 2.7%.
- Record Q1 Revenue was recorded at $579.5 million, an increase of 3.1%, driven by strong performance in the furniture category and commercial appliance business.
- Same store sales increase of 3.0% following a 9.0% increase in the first quarter of the prior year.
- Gross profit margin was 44.59%, a 72-basis point improvement driven by a favourable retail category sales mix, improved furniture margin rate as well as supply chain related cost savings.
- Adjusted net income for the quarter totaled $24.1 million, an increase of 47.0%.
- Adjusted Diluted EPS for the quarter was $0.35, an increase of 45.8%.
- On March 31, 2025, unrestricted liquidity was $469.7 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.
“In Q1, our team’s efforts to ensure optimal inventory availability enabled us to drive growth including a catch up on delivering sales booked during the fourth quarter of last year, leading to strong top-line results against an already robust comparable quarter. We continued to grow key categories during Q1, with particular strength in higher-margin furniture sales. The diversity of our business model was further demonstrated by another strong period of commercial, warranty and insurance sales growth. Our relentless commitment to cost control and operational efficiencies, combined with lower interest rates and sales growth, delivered exceptional profitability despite a challenging operating environment,” said Mike Walsh, President and CEO of LFL.
“While macroeconomic challenges persist related to tariff uncertainty across the retail sector, we are well-positioned, with an excellent in-stock inventory position, to continue delivering value to Canadian consumers. Our unmatched scale and rock-solid balance sheet, with $469.7 million in unrestricted liquidity, positions us to navigate market headwinds while delivering reliable returns to shareholders through our unwavering commitment to customer satisfaction.”
For the three months ended March 31, 2025, revenue was $579.5 million compared to $562.3 million in the first quarter of 2024 an increase of $17.2 million or 3.1%. The improvement was primarily driven by a 5.2% increase in furniture sales as a stronger inventory position enabled a catch-up of delivery on written sales from the fourth quarter and continued sales momentum in the first quarter. Additionally, the Company saw strong growth in the commercial appliance, warranty and insurance businesses. The strong overall performance was partially offset by softness in the mattress category, explained LFL.
“Given the Company’s strong and continuously improving financial position, our principal objective is to increase our market share and profitability. We remain focused on our commitment to effectively manage our costs but to also continuously invest in the business with growth initiatives that we expect will lead to increased traffic to both our online eCommerce sites and our 298 store locations across Canada,” it said.
“The Company is working towards creating the previously announced real estate investment trust in respect of some of its real estate holdings and will provide further information at the appropriate time.”
Leon’s Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our 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 298 retail stores from coast to coast in Canada under various banners. The Company operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.
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