What happened
Shares of Flexsteel Industries (FLXS 0.93%) were moving higher today after the online furniture seller delivered better-than-expected results in its fourth-quarter earnings report.
As of 1:58 p.m. EDT, the stock was up 4.2% after trading as high as 12.3% earlier in the session.
Image source: Getty Images.
So what
Flexsteel reported revenue more than doubled in the quarter as it lapped the lockdown period a year ago, rising 110% to $136.2 million, though there is no analyst coverage for comparison on the lightly traded stock. Organic sales, which exclude discontinued lines in vehicle seating and hospitality, jumped 123%.
The company also reported a record backlog for retail home furnishings at $152 million, up 238% from the prior-year quarter.
Profitability improved considerably with gross margin more than doubling from 9.2% to 19.4%, and Flexsteel reported adjusted earnings per share (EPS) of $0.61 for the quarter, compared with a per-share loss of $0.19.
CEO Jerry Dittmer sees a good year ahead for the company:
We are competing well and gaining market share. We've been building growth momentum throughout fiscal 2021 and finished the year strong. Fourth quarter sales of $136.2 million grew 15% sequentially from third quarter sales of $118.4 million, and it was our highest sales quarter for the fiscal year. Our growth trajectory is robust, and we intend to continue this momentum into fiscal 2022.
Now what
The company did not provide specific guidance in the earnings release other than Dittmer's pledge to continue momentum into fiscal 2022. Management did warn about ongoing disruptions in the supply chain, saying that could lead to choppiness in the first half of results.
While the weak quarter a year ago helped make Flexsteel's results look better than they otherwise would have, it still was a solid performance for the company and capped off a year with adjusted EPS at $2.99. If the company can keep that level of performance, the stock should move high as it currently trades at a price-to-earnings (P/E) ratio of less than 13.
