Overview

* Flexsteel Industries ( FLXS ) Q4 net sales rise 3.4%

* Q4 adjusted EPS $1.4, compared with $0.75 year ago

* Company ends Q4 with $40 mln cash, no line of credit borrowings

Outlook

* Flexsteel expects Q1 fiscal 2026 sales growth of 1% to 6%

* Company anticipates Q1 fiscal 2026 operating margin of 5.5% to 7%

* Flexsteel cites tariffs as a major risk to demand and margins

* Company plans supply chain adjustments to mitigate tariff impacts

Result Drivers

* SOFT SEATING VOLUME - Higher unit volume from soft seating products drove sales growth, partially offset by declines in ready-to-assemble products

* CURRENCY BENEFIT - 300-bps gross margin increase primarily due to foreign currency translation of peso-denominated assets

* TARIFF IMPACT - Tariffs negatively impacted gross margin by 40-bps

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $114.61 $111.80

mln mln (1

Analyst)

Q4 Beat $1.4 $0.84 (1

Adjusted Analyst)

EPS

Q4 EPS $1.89

Q4 Net $10.70

Income mln

Q4 Gross 23.9%

Margin

Analyst Coverage

* Wall Street's median 12-month price target for Flexsteel Industries Inc ( FLXS ) is $54.00, about 34.8% above its August 15 closing price of $35.21

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(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.)