Canada's Leon's Furniture Q1 adjusted net income misses, hurt by weak demand

Leons Furniture

07/05/2026 18:23

Overview

Canada furniture retailer's Q1 revenue fell 3.8% yr/yr on weaker demand and timing issues

Q1 adjusted net income missed analyst expectations, falling 16.6% yr/yr

Gross margin improved to 44.8% on favorable sales mix and better appliance rates

Outlook

Company aims to increase market share and profitability through cost management and growth investments

Leon’s Furniture notes elevated macroeconomic risks, including potential tariffs and increased fuel costs

Result Drivers

FURNITURE DELIVERY TIMING - Revenue decline was primarily driven by timing of delivered sales in the furniture category compared to Q1 last year

MACRO HEADWINDS AND WEATHER - Challenging macro environment and unfavorable weather led to lower consumer demand across categories

MATTRESS CATEGORY GROWTH - Mattress sales grew mid-single digits, offsetting some declines, supported by refreshed assortments and marketing

Company press release: ID:nNFCbSd96Z

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
C$0.29
Q1 EPS
C$0.31
Q1 Adjusted Net Income
Miss
C$20.1 mln
C$20.63 mln (4 Analysts)
Q1 Net Income
C$21.5 mln
Q1 Gross Profit
C$249.6 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home furnishings retailers peer group is "buy"

Wall Street's median 12-month price target for Leon's Furniture Ltd is C$35.00, about 35% above its May 6 closing price of C$25.92

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)