Furniture a Key Driver of LFL’s Q2 Revenue Growth

For the second consecutive quarter, Leon’s Furniture Ltd. (LFL) Group has reported better than expected financial results.

Sales, earnings and margins were all up for Canada’s largest home retailer for the period Apr. 1-June 30, 2025, amidst a challenging consumer environment.

System-wide sales for the quarter were $771.5 million, an increase of four per cent year-over-year. Same-store sales rose 4.3 per cent.

Adjusted earnings per share reached $0.57, up 29.5 per cent over the same time period and well above the estimated $0.48 and the consensus of $0.46.

Revenues climbed 4.3 per cent or $25.4 million to $644.1 million, driven by strong performance in the furniture category and commercial appliance business. Furniture sales were up 6.5 per cent, enabled by a stronger inventory position, improved assortment and more effective promotions. The commercial appliance business grew by 10.5 per cent, fuelled by builder projects being finalized and an increased focus on growing the property replacement business as the builder pipeline begins to slow down. These gains offset low single-digit declines in mattresses and electronics.

“We drove top-line growth through our integrated omnichannel platform and high in-store conversion rates, while gaining market share in our core categories,” said LFL president and CEO Mike Walsh in a statement. “Our strategic shift to a more focused assortment, combined with sourcing enhancements, drove favourable product mix and gross margin expansion.”

Gross margins rose to 44.82 per cent, compared to 43.9 per cent for the second quarter of 2024.

Selling, general and administrative expenses dropped 36.38 per cent, down 53 basis points, over the same time period.

The combination drove adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) margins up 140 basis points to 12.7 per cent, the best in six quarters. Adjusted EBITDA reached $81.8 million, up 17 per cent from the prior year.

Given the company’s strong and continuously improving financial position, Walsh said the principal objective going forward is to increase market share and profitability.

LFL is the largest retailer of furniture, appliances and electronics in Canada, with 300 locations nationwide. The company added two stores in the last quarter, a new Appliance Canada location and franchised The Brick.

The Toronto-based retail group operates under banners Leon’s, The Brick, Appliance Canada, The Brick Mattress Store and The Brick Outlet, as well as six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.