Overview

* Flexsteel's fiscal 2026 Q1 net sales rise 6.2% yr/yr, beating analyst expectations

* GAAP net income per diluted share for fiscal Q1 increases to $1.31

* Company anticipates short-term impact from new tariffs on imported furniture

Outlook

* Flexsteel anticipates new tariffs to disrupt consumer demand and industry margins short-term

* Company remains optimistic about long-term industry growth despite near-term risks

* Flexsteel is financially strong to navigate near-term challenges

Result Drivers

* PRODUCT OFFERINGS - Strong product offerings and investments in innovation and marketing drove 6.2% sales increase

* GROWTH STRATEGY - Growth from core market initiatives and new market efforts in casegoods and health categories

* MARGIN EXPANSION - Margin expansion achieved through disciplined product management and operational cost savings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $110.4 $105.38

mln mln (1

Analyst)

Q1 Net $7.3 mln

Income

Q1 Gross 23.5%

Margin

Analyst Coverage

* Wall Street's median 12-month price target for Flexsteel Industries Inc ( FLXS ) is $47.00, about 18.1% above its October 17 closing price of $38.47

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)