TORONTO – Canadian retailer Leon’s Furniture posted record financial results for its third quarter ended Sept. 30, 2020, after achieving revenue of C$630.8 million – compared with C$601.4 million for last year’s third quarter – an increase of 4.9% across all categories.
Total systemwide sales increased 7% to C$762.8 million in Q3 compared with C$712.6 million in Q3 2019, and net income increased by 47.9% to C$49.1 million in Q3-2020 compared with Q3-2019. Same-store corporate sales increased 4.5% compared with the prior year’s third quarter, and the company experienced triple-digit sales growth of 235% in the quarter from all of its e-commerce properties.
“In an environment that remains challenging for many retailers in Canada, Q3 was a record quarter across the board,” said Edward Leon, CEO of LFL Group. “The financial results generated this quarter highlight the power of our long-term model of financial conservatism and value creation accompanied with a relentless pursuit of exceeding our customers’ needs, ensuring that they can shop where, when, and how they want.”
Leon said the strategic steps the company took in 2018 to strengthen its e-commerce platform are continuing to pay off.
“We are uniquely positioned as one of the strongest omnichannel retailers in Canada today. Our retail banners are supported by a strong foundation, which includes a strategic coast-to-coast distribution footprint, one of Canada’s largest last-mile delivery operations, a leading portfolio of value-added service businesses, a rock-solid balance sheet with $638 million in unrestricted liquidity and outright ownership of many of our large, strategically-located, national real estate properties.”
The company’s adjusted diluted earnings per share grew to C82 cents in Q3 2019 to C$1.34 in the current quarter, an increase of 63.4%.
LFL Group opened three new stores during the current quarter, including two Leon’s locations in Calgary, Alberta and Kelowna, British Columbia, as well as a new Brick location in Fredericton, New Brunswick.
Leon’s Furniture Limited is the largest network of home furniture, appliances, electronics and mattress stores in Canada. The company also operates three e-commerce sites: leons.ca, thebrick.com and furniture.ca.