LFL Announces Strong Third Quarter Financial Results

Executive Summary

• Leon’s Furniture Limited reported a strong third‑quarter 2025, with system‑wide sales up 3.7% to C$808.4 M and revenue increasing 4.1% to C$678.7 M year‑over‑year.
• Adjusted net income rose 19.1% to C$44.3 M and adjusted diluted EPS increased 20.4% to $0.65, driven by higher furniture sales, improved gross margin (44.59%, up 79 bps), and disciplined SG&A spending.
• Unrestricted liquidity stood at C$549.6 M and the board declared a quarterly dividend of $0.24 per common share payable January 2026.

Key Details

• System‑wide sales: C$808.4 M (↑3.7% YoY) vs. C$779.9 M in Q3 2024.
• Revenue: C$678.7 M (↑4.1% YoY).
• Same‑store sales: C$661.6 M, up 3.9% YoY.
• Gross profit margin: 44.59%, an improvement of 79 bps from 43.80% in Q3 2024.
• Adjusted net income: C$44.3 M (↑19.1%).
• Adjusted diluted EPS: $0.65 (↑20.4%).
• Net income: C$50.3 M, up 36.3% YoY; diluted EPS $0.73 (↑35.2%).
• SG&A expenses: C$241.0 M (↑3.7% YoY); SG&A as % of revenue improved to 35.51% from 35.65%.
• Cost of sales: C$376.1 M (↑2.6% YoY).
• Unrestricted liquidity (Sept 30 2025): C$549.6 M, comprising cash, equivalents, debt/equity instruments and undrawn revolving credit facility.
• Dividends: Quarterly dividend of $0.24 per common share declared; payable 6 Jan 2026 to shareholders of record 9 Dec 2025. Annual preferred dividend of $0.44 also payable on same date.
• Outlook: Management expects a promotional industry environment in Q4 2025 and early 2026, emphasizing market‑share gains, cost discipline, and continued investment in omnichannel capabilities.

Notable Quotes

“Our team delivered another solid quarter… System‑wide sales grew 3.7%… Gross margin expanded 79 basis points… Looking ahead to Q4 and into early 2026, we expect the industry environment to remain promotional…” – Mike Walsh, President & CEO

All non‑material boilerplate, forward‑looking disclaimer text, and “About the Company” sections have been omitted for brevity.