Leon’s Furniture posts modest gains for Q3

TORONTO – Revenue for Canadian furniture retailer Leon’s Furniture grew by 1.5% to C$601.4 million for the period ended Sept. 30 compared with C$592.3 million in the third quarter of 2018, according to the company’s quarterly earnings report.

Total system-wide sales were C$712.5 million in the 2019 third quarter compared with C$707.1 million in last year’s third quarter. Same-store corporate sales increased by 0.6% compared to the prior year’s third quarter. The adjusted diluted earnings per share grew 4.8% to C44 cents in September 2019 compared with C42 cents for the same period last year.

“In an environment that continues to challenge retailers in general, our team maintained its focus on delivering top-line growth while generating targeted efficiencies, resulting in 14.3% growth in adjusted diluted EPS in the first nine months of the year,” said Edward Leon, Leon’s Furniture Limited Group president and CEO.

Leon joined Steven Mills, head of company services for the Toronto Stock Exchange and TSX Venture Exchange, to open the market last Friday, Nov. 15, to celebrate 50 years listed on the Toronto Stock Exchange. Leon’s Furniture Limited started trading on the Toronto Stock Exchange on November 11, 1969.

This quarter, Leon’s opened three new stores: two corporate banner stores and one franchise location, including the new Brick’s 50,000-square-foot West Edmonton Mall site as well as a 30,000-square-foot smart store in Coldbrook, Nova Scotia.

Leon said the concept is an example of one of the opportunities the company sees developing over the next several years: to optimize existing locations and drive value from the additional space, as well as looking at selective new greenfield locations in urban markets.

“Both of these new store concepts feature immersive technology, including features such as: digital availability and browsing of the banner’s full range of products; video walls enabling customers to view selected products in full size; and augmented reality to help with room planning,” Leon said.

The company also continued double-digit growth in the quarter from its e-commerce properties, after generating more than $100 million in online orders over the past 12 months.

Leon’s Furniture Limited is the largest network of home furniture, appliances, electronics and mattress stores in Canada operating under the names Leon’s, The Brick, Brick Outlet and The Brick Mattress Store. The company also operates three e-commerce sites: leons.ca, thebrick.com and furniture.ca.