Flexsteel Industries has reported robust results for the first quarter of fiscal 2026, despite ongoing macroeconomic pressures and evolving tariff challenges.
For the quarter ended 30 September 2025, net sales reached $110.4 million, up 6.2% from $104.0 million in the prior year. GAAP operating income rose to $9.0 million, or 8.1% of net sales, compared with $6.0 million, or 5.8%, in the first quarter of fiscal 2025. Net income per diluted share increased to $1.31 from $0.74 in the same period last year.
© Flexsteel
"We delivered strong results in the quarter, and I'm pleased with our continued growth momentum and margin expansion," said Derek Schmidt, CEO of Flexsteel Industries, Inc. "Despite choppy consumer demand and a challenging macroeconomic environment, the strength of our product offerings and continued investments in innovation and marketing are propelling our consistent growth and enabled a 6.2% sales increase in the quarter, which represents our eighth consecutive quarter of year-over-year growth. Our multi-pronged growth strategy is working well as we realised growth in the quarter from both our core market initiatives, driven largely by new products, and our new/expanded market efforts where we are ramping sales in both the case goods and health and wellness product categories. Our revenue growth coupled with disciplined product portfolio management and operational cost savings are leading our continued margin expansion as we delivered a strong operating margin of 8.1% in the quarter, which represents our tenth consecutive quarter of year-over-year improvement and a 230 basis point increase compared to the prior year."
Mr. Schmidt added, "While tariff changes are projected to have a material impact on our sales and profitability short-term, our company is financially strong and well-positioned to navigate these near-term challenges while continuing to strengthen our competitiveness and drive long-term profitable growth and shareholder value."
Gross margin improved by 200 basis points to 23.5%, supported by sales leverage and favourable foreign currency translation. SG&A expenses decreased slightly to 15.4% of net sales. The company closed the quarter with $38.6 million in cash and working capital of $116.9 million, with access to $54.1 million under its secured line of credit.
Flexsteel continues to focus on core and growth markets, managing operational efficiency while navigating tariff and macroeconomic challenges, demonstrating resilience and strategic agility in the U.S. residential furniture sector.
More information:
Flexsteel
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www.ir.flexsteel.com
