On February 4, 2025, it was reported, furniture manufacturer and importer Flexsteel chalked up a solid sale increase for the fifth quarter in a row and its second consecutive quarter of triple-digit operating income gains. Net sales for the second quarter, ended Dec. 31, 2024, climbed 8.4% to $108.5 million. The top line was driven by higher sales volumes coming from retail stores, which was up 10.3% to $9.2 million. Sales e-commerce channels dropped 7.1% to $800,000 due to softer consumer demand. Gross margin for the quarter ended was 21.0%, compared with 21.9% for the prior-year quarter. The 90-bps decrease was primarily due to margin dilution from higher ocean freight costs. Selling, general and administrative (SG&A) expenses declined to 14.9% of net sales in the second quarter compared with 17.3% of net sales in the prior year quarter. Operating income soared 154% to $11.7 million, and adjusted operating income for the quarter 47% to $6.7 million. Income tax expense was $2.6 million, or an effective rate of 22.4%, during the second quarter compared with tax expense of $1 million, or an effective rate of 25.5%, in the prior year quarter. Net income nearly tripled to $9.1 million, or $1.62 per diluted share, compared with net income of $3.1 million, or 57 cents per diluted share, in the prior year quarter. Adjusted net income was $5.3 million or 95 cents per diluted share compared with adjusted net income of $3.1 million or 57 cents per diluted share in the prior year quarter. For the full fiscal year, the company increasing the previously disclosed range of expected sales growth from 3.5% to 6.5%, to 5.5% to 8.0%, setting the new range at $435 million to $445 million.
On February 3, 2025, it was reported, Nordstrom launched the second part of its "Nordstrom for Everything New York" campaign Monday, building on the momentum of celebrating the fifth anniversary of its New York flagship store. The campaign features filmmaker Spike Lee, actors Amy Sedaris and John Turturro, model Carlisle Aikens, and comedian Kate Berlant, among other noteworthy New Yorkers. Captured at the American Museum of Natural History, the Plaza Hotel, Zabar's and Nom Wah, the campaign highlights "everyday and extraordinary moments across the city," the retailer said. With its campaign, Nordstrom aims to promote the services it offers at its New York location, including on-site beauty experiences, last-minute alterations, styling and various food and beverage options, the retailer said in the announcement. The campaign celebrates New York, where after longing to set up shop there the company finally opened its flagship store in 2019. Nordstrom's campaign launch follows a successful fourth quarter. Last month, Nordstrom, Inc. saw a 4.9% sales bump year over year in Q4. While Nordstrom's net sales rose 3.7% year over year, Nordstrom Rack's net sales grew 7.4% compared to the previous year. In light of its performance, the company updated its guidance to say that it anticipates its 2024 revenue to rise between 1.5% and 2.5% from the previous year. As Nordstrom and Nordstrom Rack wrapped up a profitable fourth quarter, executives at Nordstrom Inc. were working to bring the company back under family control. Erik, Jamie and Pete Nordstrom, as well as other family members, entered into a deal with the Mexican retail conglomerate El Puerto de Liverpool to buy the remaining stock.
On January 31, 2025, it was reported, after years of quarterly losses, home furniture supplier Dorel Inds. has announced a significant restructuring of its furniture division, or Home segment. The move includes the closure of a Quebec manufacturing plant and resulting layoffs, further layoffs of non-manufacturing personnel, the acceleration of a SKU-reduction initiative and further distribution footprint reduction. The restructuring follows the closure of the company's Ameriwood plant in Ohio last July, which resulted in 130 layoffs. Production at the closing Quebec facility is expected to end before the end of the first quarter, the company said. The plant had been making mattresses exclusively. "Alternative supply sources have already been identified to ensure seamless fulfillment of existing customer orders and to provide a reliable source for future business needs," the company said. "With brick-and-mortar now playing a more important role in the Home segment's channels of distribution, the focus in 2024 was to reduce the number of SKUs targeted for e-commerce, which is expected to reduce warehousing in the U.S. by approximately 1.2 million square feet by the fourth quarter of 2025." These initiatives are expected to save the company $9 million in costs, with an additional $9 million to be saved in non-cash write-offs and accelerated depreciation of assets. Savings began in 2024 and will be fully realized in 2026, the company said. Around $40 million is expected in earnings improvement by 2026. Lastly, the Home segment has named a new CEO in Troy Franks. Dorel's Juvenile segment remains strong, the company said, and has been outperforming the Home segment for many quarters.
On January 31, 2025, it was reported, A federal court here has ruled that Tempur Sealy International's $4 billion acquisition of Mattress Firm can proceed. The ruling came down under seal from the U.S. Federal Court for the Southern District of Texas Friday evening with nine days left before the proposed deal was set to expire Sunday, Feb. 9. The opinion and order were entered under seal, denying the Federal Trade Commission's request to halt the closing of the acquisition. The decision was filed under seal, the brief said, because of the large array of array of confidential and proprietary information was submitted during these proceedings as derived from Tempur Sealy, Mattress Firm, and a number of other participants in the mattress industry A redacted version of the opinion will be available next week, according to the order filed by Judge Charles Eskridge. The judge also granted the FTC's request from earlier this week to extend the temporary restraining order seven days so that the agency could pursue and appeal to the Fifth Circuit Court of Appeals if it chooses.
