03:12 PM EDT, 08/07/2025 (MT Newswires) -- Leon's Furniture (LNF.TO), a Canadian furniture, appliance and electronics retailer, was edging up Thursday as it reported in line earnings for the second quarter, but beat revenue expectations, while it announced a 20% increase to the quarterly dividend.

Net income for the second quarter of 2025 was $31.8 million, or $0.46 per diluted earnings per share as compared to $0.44 per diluted earnings per share recorded in the prior year's quarter, an increase of $0.02 per share or 4.5% (net income of $30.2 million in the second quarter of 2024). It met the consensus forecast as at FactSet.

During the quarter, it said, net income was impacted by an after-tax mark-to-market loss of $7.6 million on foreign exchange related derivates, an increase of $7.9 million over the prior year's quarter.

For the three months ended June 30, 2025, revenue was $644.1 million compared to $617.7 million in the second quarter of 2024 an increase of $26.4 million or 4.3%. It beat a consensus forecast at FactSet of $628.1 million.

Leon's said the improvement was primarily driven by a 6.5% increase in furniture sales enabled by a stronger inventory position, improved assortment and more effective promotions. Additionally, the commercial appliance business grew by 10.5% as the company continues to deliver on builder projects being finalized combined with an increased focus on growing the property replacement business as the builder pipeline begins to slow down. This was offset by low single digit declines in the mattress and electronics categories.

Today, the directors declared an increase in the quarterly dividend of $0.04 to $0.24 per common share payable on October 7, 2025 to shareholders of record at the close of business on September 9, 2025.

On outlook, it said given its "strong and continuously improving financial position", its principal objective is to increase market share and profitability. It remains focused on a commitment to effectively manage costs, but to also continuously invest in the business to drive growth initiatives that will drive more customers to both our online eCommerce sites and 300 store locations across Canada.

Mike Walsh, President and CEO, said, "Our team delivered another solid performance in Q2, with system-wide sales increasing 4.0% and adjusted diluted earnings per share growing 29.5%, reflecting our continued organizational focus and disciplined execution. We drove top-line growth through our integrated omnichannel platform and high in-store conversion rates, while gaining market share in our core categories. Our strategic shift to a more focused assortment, combined with sourcing enhancements, drove favourable product mix and gross margin expansion. Operationally, targeted efficiency programs implemented over the past year continued to deliver SG&A leverage, demonstrating our ability to scale while controlling costs and driving bottom-line performance. While the consumer environment remains challenging, our scale, distribution capabilities, sourcing advantages, and robust balance sheet, including $454.5 million in unrestricted liquidity, helps us to execute consistently and capitalize on opportunities as they arise."

Price: 28.10, Change: -0.06, Percent Change: -0.21