Leon’s Furniture Q2 profit up from year ago, sales up with addition of the Brick

TORONTO – Leon’s Furniture Ltd. (TSX:LNF) said Tuesday it earned $14.4 million in its latest quarter as the addition of the Brick chain of stores helped boost sales.

The furniture retailer said the profit amounted to 18 cents per diluted share for the quarter ended June 30 compared with a profit of $9 million or 12 cents per diluted share a year ago.

Revenue totalled $480.6 million, up from $162.1 million, boosted by its acquisition of the Brick, while same-store sales were basically flat compared with the second quarter last year.

“This year is again proving to be a challenging one where we continue to see a soft economy with no clear signs of any major turnaround,” the company said in a statement.

Leon’s closed its purchase of the Brick in March in a deal valued at about $700 million or $5.40 per share.

The deal helped make Leon’s one of the largest sellers of furniture, appliances and electronics in the country with more than 300 stores including over 100 franchise locations.

The Brick’s retail banners include the Brick, United Furniture Warehouse, the Brick Mattress Store, Brick Clearance Centres and Urban Brick.