Brief: Flexsteel Industries Q2 Sales Fell 8.5 Percent To $118.4 Mln

Flexsteel Industries

04/02/2019 21:33

Feb 4 (Reuters) - Flexsteel Industries Inc  FLXS.O :
    * FLEXSTEEL INDUSTRIES, INC. REPORTS SECOND QUARTER RESULTS
    * Q2 SALES FELL 8.5 PERCENT TO $118.4 MILLION
    * Q2 EARNINGS PER SHARE $0.20
    * FLEXSTEEL - WORKED TO CUT CHINESE SOURCED PRODUCT COSTS TO
MITIGATE SIZE OF SELL PRICE INCREASES PASSED THROUGH DURING
TARIFF IMPLEMENTATION IN SEPT 2018
    * "THERE HAS BEEN AN ADVERSE IMPACT ON ORDER RATES DUE TO
CURRENT
TARIFF LEVEL AS SOME RETAILERS HAVE ALTERED BUYING PATTERNS"
    * ANTICIPATES ADDITIONAL VOLUME DECLINES IF TARIFF IS
ESCALATED TO
25% IN MARCH 2019
    * FLEXSTEEL - IN PREPARATION FOR POTENTIAL 25% TARIFF, CO IS
WORKING ON SUPPLY CHAIN REALIGNMENT TO PROVIDE COST REDUCTIONS
AND MITIGATE PRICE INCREASES
    * FLEXSTEEL - "INABILITY TO REDUCE CHINESE SOURCED PRODUCT
COSTS
OR PASS THROUGH PRICING TO MITIGATE TARIFFS POSES SIGNIFICANT
RISK TO CURRENT AND FUTURE EARNINGS"
    * FLEXSTEEL INDUSTRIES- DEPENDING ON LEVEL OF PRICE INCREASE
AT
WHOLESALE THERE COULD BE SIGNIFICANT VOLUME CONTRACTION IN
RESIDENTIAL HOME FURNISHINGS
    * QTRLY GROSS MARGIN AS A PERCENT OF NET SALES WAS 18.2%
VERSUS
21.2%

Source text for Eikon:  ID:nBw10xmZ7a 
Further company coverage:  FLXS.O 

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