Flexsteel Industries Reports Q1 2027 Revenue Growth Amidst Supply Chain and Tariff Headwinds
Flexsteel Industries (FLXS) reported a 3.2% increase in net sales to $114.0 million for the first quarter of fiscal 2027, marking its 12th consecutive quarter of year-over-year growth. The performance was primarily driven by a 5.1% rise in Flexsteel branded revenue, supported by strong demand in soft seating products and strategic account gains. However, gross profit margins compressed to 22.0% from 23.5% last year, impacted by foreign currency translation and rising ocean and domestic transportation costs. The company is currently executing a strategic exit from the Homestyles brand's ready-to-assemble category to focus on its core upholstered furniture business. While orders grew by approximately 5%, management warned of macroeconomic risks including weak consumer confidence and upcoming Section 232 tariff increases on upholstered furniture scheduled for January 1, 2027. For Q2, Flexsteel provided optimistic sales guidance, projecting growth between 1% and 4%.
Topics: Financial Guidance GAAP Net Income Net Sales Operating Margin Revenue Growth
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