by Toronto-based Leon’s Furniture Limited reported a 7% increase in third-quarter systemwide sales to C$762.8 million a 4.9% increase in revenue to C$630.8 million, with increases across all product categories. Same-store sales increased 4.5%.
Net income for the parent of Leon’s Furniture, The Brick and other retail banners jumped 47.9% to C$49.1 million, or 60 cents per share. The company opened two Leon’s and one Brick location during the quarter.
“In an environment that remains challenging for many retailers in Canada, Q3 was a record quarter across the board for LFL,” said CEO Edward Leon.
“Our consistent focus on operating efficiency and returns on advertising spend enabled us to leverage single-digit revenue growth into diluted earnings per share growth of 50% compared to Q3 of last year. …
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“The strategic steps we took in 2018 to strengthen our e-commerce platform to enhance the customer experience and ensure scalability, continue to pay off,” he said, adding that e-commerce initiates square were up 235% quarter-over-quarter across three e-commerce websites.
Purple Innovation’s third-quarter net revenue jumped 59.4% to $187.1 million, but the mattress maker and DTC brand swung to a net loss in the third quarter of $1.2 million compared to net income of $8.4 million for the same period a year ago.
Adjusted net income for the period ended Sept. 30, (which excludes an $18 million non-cash expense related to the fair value of warrant liabilities and other items) increased to $17.2 million, or $0.27 per share, from $7.3 million, or $0.14 per share.
Direct-to-consumer revenue increased 97.5%; Wholesale revenue increased 6.9%.
“The investments we made earlier this year to expand our manufacturing capacity helped support strong year-over-year growth in our direct-to-consumer mattress business, as well as a resurgence in our wholesale channel as our retail partners experienced improved store traffic,” said CEO Joe Megibow said.
“We also continued to see strong gains in seat cushions, pillows and sheets, underscoring the progress we’ve made increasing awareness and driving demand for our premium, non-mattress categories,” He added the companies strong top-line growth, improved operating margins, and marketing efficiencies drove an operating profit increase of more than 120%.
“As we head into the final months of 2020, our focus is on successfully fulfilling demand during the holiday season and preparing to kick off the new year from a position of strength to profitably accelerate market share growth. This includes continuing the rapid build-out of our new 520,000 square foot facility in Georgia that will significantly expand our domestic manufacturing capacity, as well as expanding our brand showrooms in additional major markets.”
The company also is increasing its marketing spend and will debut a new creative campaign next year “aimed at attracting new consumers and further advancing the premium positioning of the Purple brand,” he said.
Berkshire Hathaway’s retailing group revenues increased 4.3% to $4.2 billion in the quarter and were down 4.2% to $11.2 billion for the first nine months vs. the same periods a year ago. Home furnishings group revenues increased 8.5% in the third quarter and were off 4.9% through the first nine months. The company owns Nebraska Furniture Mart (and its Homemakers division), R.C. Willey, Star Furniture and Jordan’s Furniture. See more here.
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