Leon's Furniture (LNF) Q2 2025 earnings summary

Executive summary

• Achieved system-wide sales of $771.5 million, up 4.0% year-over-year, with revenue rising 4.3% to $644.1 million, driven by strong furniture and commercial appliance sales.

• Same store sales increased 4.3% year-over-year, reflecting effective omnichannel strategies and market share gains in core categories.

• Adjusted net income grew 31.8% to $39.4 million, and adjusted diluted EPS rose 29.5% to $0.57, supported by margin expansion and SG&A leverage.

• Announced a 20% increase in the quarterly dividend to $0.24 per share, payable in October 2025.

Financial highlights

• Gross profit margin improved by 92 basis points to 44.82%, driven by favorable sales mix and sourcing enhancements.

• SG&A as a percentage of revenue decreased by 53 basis points to 36.38%, aided by lower financing fees and operational leverage.

• Net income for Q2 2025 was $31.8 million, up 5.3% year-over-year, with diluted EPS of $0.46.

• Adjusted EBITDA for the quarter was $81.8 million, up from $69.8 million in Q2 2024.

• Unrestricted liquidity stood at $454.5 million as of June 30, 2025.

Outlook and guidance

• Focus remains on increasing market share and profitability through cost management and continued investment in growth initiatives.

• Plans to drive more customers to both eCommerce platforms and 300 retail locations across Canada.