Flexsteel Industries Inc. reported results for the fiscal first quarter ended September 30, 2026, noting continued sales growth despite a challenging macroeconomic environment. The company reported net sales of $114.0 million for the quarter, an increase of 3.2% compared to the prior year quarter. Sales of Flexsteel branded products grew 5.1% during the period.
GAAP operating income for the quarter was $6.9 million, or 6.0% of net sales, down from $9.0 million, or 8.1% of net sales in the prior year. Net income per diluted share was reported at $1.24, compared to $1.31 in the prior year quarter. The company noted that a $0.8 million unfavorable impact from foreign currency translation related to peso-denominated assets in Mexico contributed to the margin compression.
Regarding liquidity, Flexsteel ended the quarter with a cash balance of $4.4 million and working capital of $80.5 million. The company utilized $2.2 million for share repurchases and paid $1.1 million in dividends during the quarter. Capital expenditures for the period were $1.0 million.
For the second quarter of fiscal 2027, the company provided guidance expecting sales growth of 1% to 4% compared to the prior year quarter. The company also forecasted a GAAP operating margin of 6.5% to 7.0% for the upcoming quarter.
