LFL Group Delivers Strong Third Quarter for 2025

Canada’s largest home retailer, Leon’s Furniture Ltd. (LFL) Group, has reported solid earnings in the third quarter.

System-wide sales were $808.4 million, an increase of 3.7 per cent year-over-year. Same store sales rose by 3.9 per cent over the same time period.

Revenue was $678.7 million compared to $651.9 million in the third quarter of 2024, up $26.8 million or 4.1 per cent.

Gross profit margin was 44.59 per cent, a 79-basis point improvement.

The strength of these results, along with continued operational discipline and favourable cost comparisons, translated to adjusted diluted earnings per share growth of 20.4 per cent.

LFL attributes these positive numbers to an 11.2 per cent increase in furniture sales and an increase in appliance sales. Furniture performance was driven by a stronger inventory position, improved assortment and more effective promotions. Appliance performance was fuelled by the commercial channel as LFL continued to deliver on builder projects being finalized, combined with an increased focus on growing the replacement business as the builder pipeline begins to slow down across the industry. This was partially offset by low to mid-single digit declines in mattress and electronics sales as the environment remained highly promotional.

Looking ahead to the fourth quarter and into early 2026, LFL president and CEO Mike Walsh expects the industry environment to remain promotional, with Canadians continuing to look for value from retailers they trust.

“We have a proven track record of navigating dynamic environments, gaining market share and delivering profitability,” he told shareholders. “Our scale, distribution capabilities, sourcing advantages and rock-solid balance sheet, including $549.6 million in unrestricted liquidity, give us the tools to execute consistently and continue delivering value for our customers and shareholders.”

LFL’s retail banners include Leon’s, The Brick, Brick Outlet and The Brick Mattress Store. Combined with The Brick’s Midnorthern Appliance banner alongside Leon’s Appliance Canada banner, this makes the company the country’s largest commercial retailer of appliances to builders, developers, hotels and property management companies.

The Toronto-based company currently operates 300 stores across the country under various banners as well as six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.