Leon’s Furniture Limited has announced financial results for the quarter ended December 31, 2025, with system-wide sales for the year increasing to nearly $3.1 billion.
“In 2025, our teams delivered the outstanding value and experience Canadians expect, while maintaining gross margin and cost discipline. These efforts drove strong full-year results. System-wide sales grew 2.8% to $3.1 billion, normalized adjusted diluted EPS increased 16.5%, and we continued to generate robust cash flow. Reflecting these results, we increased our quarterly dividend by 20% and ended the year with a rock-solid balance sheet supported by $603 million in unrestricted liquidity,” said Mike Walsh, President and CEO of LFL.
“The fourth quarter unfolded largely as anticipated, with consumers taking a more deliberate approach to significant discretionary purchases and promotional activity intensifying across the industry. Results were further impacted by Canada Post service disruptions and unfavorable weather comparisons during key selling periods. Despite these headwinds system-wide sales was up 0.8%, gross margin expanded 23 basis points, and normalized adjusted diluted EPS grew by 1.3%. For more than 115 years, we have made it a priority to gain share in markets like this by providing value to our consumers. Supported by our competitive advantages – a coast-to-coast presence, omnichannel platform, sourcing capabilities, distribution network, and strong balance sheet – we remain confident in our ability to grow market share in our core categories and to deliver long-term returns for our shareholders.”
Financial Highlights – Q4-2025
- System-wide sales for the quarter was $813.0 million, an increase of 0.8%.
- Q4 Revenue was $671.4 million, an increase of 0.7%, driven by strong performance in the furniture category
- Same store sales increase of 0.6%.
- Gross profit margin was 46.08%, a 23-basis point improvement driven by favourable retail category sales mix and improved furniture rates driven by assortment and sourcing improvements.
- SG&A rate increased by 13 bps driven by higher occupancy and amortization costs.
- Net Income was $51.0 million compared to $67.9 million in the prior year.
- Normalizing for a one-time $23.4M pre-tax settlement in Q4 2024, adjusted normalized net income for the quarter increased by $1.0 million or 2.0%.
- On December 31 2025, unrestricted liquidity was $603.0 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.
- A special dividend of $0.50 per common share was declared by the Board of Directors.
Financial Highlights – Year Ended December 31, 2025
- System-wide sales for the year was $3,088.9 million, an increase of 2.8%.
- 2025 Revenue was recorded at $2,573.7 million, an increase of 3.0%, driven by strong performance in the furniture and appliance categories.
- Same store sales increase of 3.0%.
- Gross profit margin was 45.04%, a 65-basis points improvement driven by strong furniture mix and margin rate improvement.
- SG&A rate decreased by 24 bps primarily as a result of lower point-of-sale retail financing fees due to lower Bank of Canada interest rates.
- Net Income was $157.0 million compared to $153.7 million in the prior year.
- Normalizing for the one-time gain from CURO in both years, adjusted normalized net income for the year increased by $22.2 million or 16.6%.
Leon’s Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Retail banners include: Leon’s; The Brick; Brick Outlet; and The Brick Mattress Store. The company has 300 retail stores from coast to coast in Canada under various banners. It operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.
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