Flexsteel(US:FLXS)2025-10-20 20:20Financial Performance - Net sales for the first quarter were $110.4 million, an increase of 6.2% compared to $104.0 million in the prior year quarter[4] - GAAP operating income was $9.0 million, representing 8.1% of net sales, compared to $6.0 million or 5.8% of net sales in the prior year quarter[4] - GAAP net income per diluted share increased to $1.31, up from $0.74 in the prior year quarter[4] - Gross margin improved to 23.5%, a 200 basis point increase from 21.5% in the prior year quarter, driven by sales leverage and favorable foreign currency translation[7] - Selling, general and administrative (SG&A) expenses decreased to 15.4% of net sales from 15.7% in the prior year quarter[8] - The company reported a strong operating margin improvement for the tenth consecutive quarter, with a 230 basis point increase year-over-year[3] Cash and Capital Management - The company ended the quarter with a cash balance of $38.6 million and working capital of $116.9 million[10] - Capital expenditures for the quarter were $1.4 million[10] Market Outlook - The company anticipates a 25% tariff on imported upholstered furniture, effective September 29, 2025, which may disrupt consumer demand and industry margins[5] - The company remains optimistic about long-term industry growth despite facing near-term risks and headwinds[3]