Leon's Furniture (LNF) Q4 2024 earnings summary

Executive summary

• System-wide sales for Q4 2024 were $806.2M, down 3.2% year-over-year; full-year sales rose 1.3% to $3,005.9M.

• Q4 revenue declined 2.9% to $666.7M due to shipping delays and reduced inventory; full-year revenue increased 1.8% to $2,498.5M.

• Adjusted net income for Q4 was $67.4M, up 37.8% year-over-year, including a $23.4M one-time legal settlement gain; excluding this, adjusted net income rose 2.2%.

• Gross profit margin improved to 45.85% in Q4 (up 91 bps) and 44.39% for the year (up 26 bps), driven by higher furniture margins and favorable mix.

• Ended 2024 with $513.2M in unrestricted liquidity.

Financial highlights

• Q4 same store sales decreased 3.2%; full-year same store sales increased 1.5%.

• Q4 adjusted diluted EPS was $0.98, up 36.1% year-over-year; normalized for one-time gain, up 2.2%.

• Full-year adjusted net income was $150.9M, up 6.6%; normalized, up 5.4%.

• Full-year adjusted diluted EPS was $2.20, up 6.8%; normalized, up 5.4%.

• Q4 net income was $67.9M ($0.99 per diluted share), up 47% year-over-year.

Outlook and guidance

• Management expects normalized inventory and restored marketing channels to support continued market share and profitability growth.

• Focus remains on cost management and investment in growth initiatives across 299 stores and eCommerce.

• Monitoring U.S. tariffs, though less than 15% of purchases are U.S.-sourced.