TORONTO — Revenues dipped slightly in the third quarter for Leons Furniture Limited Group while income was nearly 30% off 2023’s pace amid continued challenging economic conditions.
The Toronto-based retail group, whose holdings include Leon’s and The Brick, reported its earnings on Nov. 7.
For the three months ended Sept. 30, LFL, which reports in Canadian dollars, recorded revenues of C$651.9 million, a 1.4% decrease compared with C$661.0 million in the third quarter of 2023. Net income totaled C$36.9 million, or 54 cents per diluted share, which was down 29.94% compared with net income of C$52.3 million, or 75 cents per share.
System-wide sales for the third quarter were C$779.9 million, a decrease of 1.5%, while year-to-date, the Toronto-based retailer reported system-wide sales were up 3.1%. Same store sales for the quarter reached C$638.2 million, a 1.4% decline against C$647.1 million across the same three month span a year ago.
For the quarter, LFL reported adjusted EBITDA of C$79.5 million, giving it an EBITDA margin of 10.9%.
“The third quarter remained challenging, with continued pressure on Canadian consumers, alongside disruptions to freight and inventory caused by both geopolitical tensions and the rail strike. Severe weather early in the quarter also impacted sales and shipments from several Ontario facilities,” said Mike Walsh, president and CEO of LFL.
“Despite these obstacles, our team navigated the quarter effectively, delivering higher retail margins and growth in wholesale, warranty and insurance. Our disciplined focus on gross margin management and cost control enabled us to maintain stable adjusted EBITDA, even with lower volumes.”
Walsh added, “We expect the consumer and supply chain environments to remain challenging through the end of 2024, with anticipated improvements in 2025. With strong brand recognition, a proven team, and a solid balance sheet, we are well-positioned to grow market share in our core categories while continuing to deliver profitability and reliable returns for shareholders.”
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