Flexsteel Industries Inc 8-K, filed Oct 26, 2026
Flexsteel Industries Inc (FLXS)
About this 8-K
Flexsteel Industries Inc filed this 8-K on October 26, 2026.
Flexsteel Industries reported first-quarter net sales of $114.0 million, up 3.2%, operating income of $6.9 million, and net income of $5.4 million for September 30, 2026. Second-quarter sales are forecast at $119.5 - $123.0 million with a 6.5% to 7.0% margin. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2026, Flexsteel Industries, Inc. issued a press release announcing First Quarter Ended September 30, 2026 operating results. A copy of the Press Release is attached hereto as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
The company will host a conference call and webcast at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) on Tuesday, October 27, 2026 to discuss results and answer questions. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at 833-816-1123 (domestic) or 412-317-0710 (international) and requesting to be connected with Flexsteel conference call.
Additionally, interested parties can listen to a live webcast of the call in the Investor Relations section of the Company's website at https://ir.flexsteel.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.
A recorded replay can be accessed through November 3, 2026, by dialing 855-669-9658 (domestic) or 412-317-0088 (international); Replay access code: 5888380
Item 9.01 Financial Statements and Exhibits.
Exhibit Description
99.1 Press Release on Fiscal First Quarter Results by Flexsteel Industries, Inc. dated October 26, 2026
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FLEXSTEEL INDUSTRIES, INC. |
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Date: |
October 26, 2026 |
By: |
/s/ Michael J. Ressler |
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Michael J. Ressler |
Flexsteel Industries, Inc. Reports Fiscal First Quarter 2027 Results; Continued Sales and Order Growth Driven by Strategic Initiatives
Dubuque, Iowa – October 26, 2026 – Flexsteel Industries, Inc. (NASDAQ: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported first quarter fiscal 2027 results.
Key Results for the First Quarter Ended September 30, 2026
Management Commentary
“I'm pleased with our first quarter results and the continued momentum of our growth strategies despite a challenging macroeconomic environment,” said Derek Schmidt, CEO of Flexsteel Industries, Inc. “Net sales increased 3.2 percent compared to the prior year, toward the upper end of our guidance range, marking our twelfth consecutive quarter of year-over-year growth. Sales of Flexsteel branded products grew approximately 5 percent, while sales in our Homestyles ready-to-assemble category, which we are exiting, were down $1.9 million or 57% compared to the prior year quarter. Encouragingly, orders increased 5 percent and our ending backlog grew 8.2 percent versus the prior year period, reinforcing our confidence in the underlying strength of our business. New product introductions, strategic account share gains, and continued expansion in health and wellness remain strong contributors to our growth, providing further evidence that our strategic investments are strengthening our competitive position.”
Mr. Schmidt continued, “From a profitability standpoint, we delivered a GAAP operating margin of approximately 6 percent, which included a $0.8 million or 70 bps unfavorable foreign currency translation impact related to our peso-denominated asset exposure in Mexico. Excluding this impact, operating margin was in line with our expectations for the quarter and reflected solid operating performance considering the significant inflationary pressures currently impacting our industry. Ocean transportation rates have nearly doubled over the last six months, while sharply higher fuel prices and rising material costs continue to pressure margins. Our teams have mitigated a meaningful portion of these headwinds through cost savings initiatives, productivity improvements, and disciplined product portfolio management. Looking ahead, we expect the operating environment to remain
challenging as consumer confidence, affordability constraints, geopolitical uncertainty, and evolving tariff policies continue to weigh on industry demand and costs.”
Mr. Schmidt concluded, “What gives me the greatest confidence in Flexsteel's future is the progress we're making strengthening our competitive advantages through consumer insights, innovation, and disciplined execution. These capabilities are increasingly working together as an integrated system, enabling us to translate consumer needs into differentiated products and compelling growth opportunities. Our recent Fall High Point Market introductions demonstrate this progress, including our next-generation SixFlexTM seating technology and Comfort ChoiceTM program, expansion of our wellness portfolio across multiple consumer life stages, continued innovation in our Flexsteel PulseTM immersive sound seating platform, and new offerings within our Flexsteel StatementsTM casegoods collection. While the external environment may remain difficult, we are not standing still. We are strengthening the core capabilities that have made Flexsteel a trusted brand for generations while creating new reasons for consumers and retailers to choose us. With a strong balance sheet, disciplined operating model, and clear strategic priorities, we remain confident in our ability to continue gaining share and creating sustainable long-term shareholder value.”
Operating Results for the first Quarter Ended September 30, 2026
Net sales were $114.0 million for the first quarter compared to net sales of $110.4 million in the prior year quarter, an increase of $3.5 million, or 3.2%. The increase was driven by growth in Flexsteel branded soft seating products of $5.5 million, partially offset by a decline of $1.9 million in Homestyles ready-to-assemble products. Sales of Flexsteel branded casegoods products were relatively flat compared to the prior year period.
(in millions) |
2027 |
2026 |
$ Change |
% Change |
Flexsteel brand |
$112.6 |
$107.1 |
$5.5 |
5.1% |
homestyles brand |
1.4 |
3.3 |
(1.9) |
(57.6) |
Total |
$114.0 |
$110.4 |
$3.6 |
3.2% |
Gross margin for the quarter ended September 30, 2026, was 22.0%, compared to 23.5% for the prior-year quarter, a decrease of 150 basis points (“bps”). The 150-bps decrease was primarily driven by a 130-bps unfavorable impact from foreign currency translation of our peso-denominated assets in Mexico and inflation driven by elevated energy prices.
Selling, general and administrative (SG&A) expense was 16.0% of net sales in the first quarter of fiscal 2027 compared to 15.4% of net sales in the prior year quarter. The increase was primarily due to investments in consumer insights, innovation, new products, marketing and demand generation and talent to strengthen our capabilities and execute our growth strategy.
Operating income for the quarter ended September 30, 2026, was $6.9 million compared to $9.0 million in the prior year quarter.
The Company reported income tax expense of $1.5 million, or an effective rate of 21.8%, during the first quarter compared to tax expense of $2.1 million, or an effective rate of 21.9%, in the prior year quarter.
The Company reported net income of $5.4 million, or $1.24 per diluted share, for the quarter ended September 30, 2026, compared to net income of $7.3 million, or $1.31 per diluted share, in the prior year quarter.
Liquidity
The Company ended the quarter with a cash balance of $4.4 million, and working capital (current assets less current liabilities) of $80.5 million, and availability of approximately $29.1 million under its secured line of credit.
Capital expenditures for the quarter ended September 30, 2026, were $1.0 million.
Financial Outlook
For second quarter fiscal 2027, the Company expects sales growth of 1% to 4%, or 3.5% to 6.5% excluding the impact of the homestyles brand exit, compared to the prior year quarter and operating margin of 6.5% to 7%. The most significant drivers of variability in the financial outlook are consumer demand and logistics and material cost inflation driven by elevated energy prices.
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Second Quarter Fiscal 2027 |
Sales |
$119.5 - $123.0 million |
Sales Growth (vs. Prior Year) |
1% to 4% |
GAAP Operating Margin |
6.5% to 7.0% |
(in millions) |
Q2 FY27 Forecast |
Q2 FY26 |
% Change |
Flexsteel brand |
$119.5 - $123.0 |
$115.5 |
+3.5% to +6.5% |
homestyles brand |
$0.0 |
$2.7 |
-100% |
Total |
$119.5 - $123.0 |
$118.2 |
+1% to +4% |
Conference Call and Webcast
The Company will host a conference call and audio webcast with analysts and investors on Tuesday, October 27, 2026, at 8:00 a.m. Central Time to discuss the results and answer questions.
To pre-register for the earnings conference call and avoid the need to wait for a live operator, investors can visit https://dpregister.com/sreg/10212282/104f7cea0de and enter their contact information. Investors will then be issued a personalized phone number and pin to dial into the live conference call.
About Flexsteel
Flexsteel Industries, Inc., and Subsidiaries (the “Company,” "Flexsteel," or "Our") is one of the largest residential furniture manufacturers, importers, and marketers in the U.S. Flexsteel addresses different consumer groups through our core brand, Flexsteel, and several category-specific sub-brands: Zecliner®, Flexsteel StatementsTM, Zen, Perfect Match, and Flexsteel PulseTM, all of which have unique value propositions tailored to specific consumer needs. We offer a wide assortment of product solutions for different areas within the home including stationary and motion sofas, loveseats, chairs, and sectionals, as well as bedroom furniture, dining tables and chairs, occasional and entertainment tables, and kitchen storage. For more than 130 years, Flexsteel has strived to create strong consumer value with unmatched quality, comfort, and durability, backed by innovation and highlighted by its patented Blue Steel Spring technology, designed to deliver lasting comfort and support. Today, Flexsteel products are available nationwide through retail partners and online channels.
Forward-Looking Statements
Statements, including those in this release, which are not historical or current facts, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause the Company’s results to differ materially from those anticipated by some of the statements made herein. Investors are cautioned that all forward-looking statements involve risk and uncertainty. Some of the factors that could affect results are the cyclical nature of the furniture industry, supply chain disruptions, litigation, the effectiveness of new product introductions and distribution channels, the product mix of sales, pricing pressures, the cost of raw materials and fuel, changes in foreign currency values, retention and recruitment of key employees, actions by governments including laws, regulations, taxes and tariffs, the amount of sales generated and the profit margins thereon, competition (both U.S. and foreign), credit exposure with customers, participation in multi-employer pension plans, disruptions or security breaches to business information systems, the impact of any future pandemic, and general economic conditions. For further information regarding these risks and uncertainties, see the “Risk Factors” section in Item 1A of our most recent Annual Report on Form 10-K.
For more information, visit our website at http://www.flexsteel.com.
FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
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September 30, |
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June 30, |
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2026 |
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2026 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
4,407 |
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$ |
16,678 |
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Trade receivables, net |
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41,520 |
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42,658 |
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Inventories |
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92,783 |
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90,593 |
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Other |
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9,741 |
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8,444 |
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Total current assets |
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148,451 |
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158,373 |
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NONCURRENT ASSETS: |
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Property, plant and equipment, net |
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35,691 |
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35,972 |
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Operating lease right-of-use assets |
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34,057 |
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35,672 |
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Other assets |
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24,310 |
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23,992 |
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TOTAL ASSETS |
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$ |
242,509 |
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$ |
254,009 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable - trade |
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$ |
36,094 |
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$ |
36,238 |
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Accrued liabilities |
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31,862 |
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39,427 |
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Total current liabilities |
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67,956 |
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75,665 |
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LONG-TERM LIABILITIES |
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Other liabilities |
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42,496 |
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44,849 |
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Total liabilities |
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110,452 |
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120,514 |
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SHAREHOLDERS' EQUITY |
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132,057 |
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133,495 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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$ |
242,509 |
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$ |
254,009 |
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FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
(in thousands, except per share data)
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Three Months Ended |
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September 30, |
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2026 |
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2025 |
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Net sales |
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$ |
113,966 |
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$ |
110,439 |
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Cost of goods sold |
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88,870 |
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84,493 |
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Gross profit |
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25,096 |
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25,946 |
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Selling, general and administrative expenses |
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18,202 |
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16,959 |
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Operating income |
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6,894 |
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8,987 |
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Other income (expense): |
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Interest income |
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52 |
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391 |
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Interest (expense) |
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(9 |
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— |
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Income before income taxes |
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6,937 |
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9,378 |
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Income tax provision |
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1,513 |
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2,051 |
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Net income and comprehensive income |
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$ |
5,424 |
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$ |
7,327 |
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Weighted average number of common shares outstanding: |
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Basic |
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4,122 |
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5,307 |
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Diluted |
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4,365 |
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5,598 |
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Earnings per share of common stock: |
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Basic |
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$ |
1.32 |
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$ |
1.38 |
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Diluted |
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$ |
1.24 |
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$ |
1.31 |
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FLEXSTEEL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
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Three Months Ended |
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September 30, |
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2026 |
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2025 |
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OPERATING ACTIVITIES: |
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Net income |
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$ |
5,424 |
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$ |
7,327 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
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1,097 |
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836 |
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Deferred income taxes |
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38 |
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3,360 |
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Stock-based compensation expense |
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1,064 |
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1,117 |
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Provision for credit losses |
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— |
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36 |
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(Gain) on disposition of property, plant and equipment |
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(15 |
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— |
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Changes in operating assets and liabilities |
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(9,073 |
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(8,562 |
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Net cash (used in) provided by operating activities |
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(1,465 |
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4,114 |
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INVESTING ACTIVITIES: |
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Proceeds from sales of property, plant and equipment |
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15 |
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— |
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Capital expenditures |
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(965 |
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(1,357 |
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Net cash (used in) investing activities |
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(950 |
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(1,357 |
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FINANCING ACTIVITIES: |
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Dividends paid |
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(1,132 |
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(1,147 |
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Treasury stock purchases |
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(2,184 |
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(1,130 |
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Proceeds from line of credit |
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3,000 |
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— |
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Payments on line of credit |
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(3,000 |
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— |
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Proceeds from issuance of common stock |
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— |
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30 |
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Shares withheld for tax payments on vested shares and options exercised |
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(6,540 |
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(1,931 |
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Net cash (used in) financing activities |
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(9,856 |
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(4,178 |
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(Decrease) in cash and cash equivalents |
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(12,271 |
) |
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(1,421 |
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Cash and cash equivalents at beginning of the period |
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16,678 |
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40,006 |
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Cash and cash equivalents at end of the period |
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$ |
4,407 |
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$ |
38,585 |
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INVESTOR CONTACT:
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Michael Ressler, Flexsteel Industries, Inc. |
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563-585-8116 |
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investors@flexsteel.com |
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