Leon's Furniture (LNF) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $617.7M, up from $593.8M in Q2 2023; six-month revenue reached $1.18B, up from $1.11B year-over-year.

• Net income for Q2 2024 was $30.2M, up from $27.4M in Q2 2023; six-month net income was $49.0M, up from $40.3M year-over-year.

• Comprehensive income for Q2 2024 was $30.9M, compared to $26.1M in Q2 2023.

Financial highlights

• Gross profit for Q2 2024 was $271.2M, up from $260.9M in Q2 2023; six-month gross profit was $517.9M, up from $483.4M year-over-year.

• Basic EPS for Q2 2024 was $0.44, up from $0.40 in Q2 2023; six-month basic EPS was $0.72, up from $0.59 year-over-year.

• Dividends declared per share increased to $0.18 in Q2 2024 from $0.16 in Q2 2023.

• Cash and cash equivalents at June 30, 2024 were $56.8M, down from $82.7M at December 31, 2023.

• Cash provided by operating activities for the six months ended June 30, 2024 was $76.2M, up from $63.7M in the prior year period.

Outlook and guidance

• Management believes sufficient funds are available to meet liquidity requirements, with $169.3M undrawn on the $200M revolving credit facility as of June 30, 2024.

• Retail sales are traditionally higher in the third and fourth quarters due to seasonality.