Leon’s Furniture Limited announced Thursday financial results for the quarter ended March 31, 2026, showing system-wide sales of $672 million, a decrease of 3.5% from the same period a year ago.
“During the first quarter our team executed with discipline in a period defined by macro headwinds, a cautious consumer and particularly demanding prior-year comparables. We continued to grow share in our core categories while expanding gross margin with a consistent focus on thoughtful merchandising and an optimized promotional strategy. The mattress category was a clear standout, delivering mid-single-digit growth in a challenging segment – a direct result of the focused-assortment playbook that drove our furniture gains last year,” said Mike Walsh, President and CEO of LFL.
“While there are elevated risks across the broader economy, from potential tariffs to increased fuel costs, LFL is well positioned to continue to outperform through this cycle and to come out of it in a stronger position as conditions normalize. Retailers across the sector continue to face a more selective consumer, and we are navigating those pressures from a position of strength, with the business better positioned than ever before. Our scale, national distribution network and approximately $561 million in unrestricted liquidity position us to continue delivering value to Canadians, gaining share in our categories of focus, and delivering long-term returns for our shareholders.”
Financial Highlights – Q1-2026
- System-wide sales for the quarter were $672.0 million, a decrease of 3.5%.
- Q1 Revenue was recorded at $557.2 million, a decrease of 3.8%, driven primarily by timing of delivered sales in the furniture category as compared to Q1 last year, a challenging macro environment and unfavourable weather.
- Same store sales decreased 4.2%.
- Gross profit margin was 44.80%, a 21-basis points improvement driven by favourable category sales mix and improved appliance rates.
- Net Income was $21.5 million compared to $23.8 million in the prior year.
- Adjusted net income was $20.1 million compared to $24.1 million in the prior year.
- On March 31, 2026, unrestricted liquidity was $560.8 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.
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. 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. It operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.
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