Flexsteel Industries, Inc. (FLXS, Financial) reported a solid performance for the third quarter, with revenue reaching $114.0 million, a notable increase from $107.2 million the previous year. The company attributes this 6.3% sales growth to successful execution of growth strategies and strong market performance.
The company's strategic focus on new products and capturing market share with key accounts has driven its expansion in both core and new market initiatives. This diversified growth has enabled Flexsteel to maintain its sales momentum, marking the sixth consecutive quarter of mid-single to low-double digit year-over-year growth.
The company's profitability has also seen improvement, with an adjusted operating margin of 7.3%—the second-highest quarterly margin in the past seven years, and the eighth consecutive quarter of year-over-year margin enhancement. Flexsteel's strong cash flow generation, resulting in $12.3 million of operating cash flow, has strengthened its financial footing, increasing its cash reserves to $22.6 million by quarter's end.
Flexsteel's robust financial performance comes at a time of increased economic uncertainty, positioning the company advantageously against competitors. Continued success in executing its growth strategies and maintaining financial discipline is expected to support Flexsteel's competitive edge moving forward.
