LFL Group Posts Yearly Growth Amid Industry Challenges

Canada’s largest home retailer Leon’s Furniture Ltd. (LFL) Group posted revenue gains in 2024, despite sales slipping in the fourth quarter of the year.

The owner and operator of Leon’s and The Brick reported revenue was up 1.8 per cent to $2.499 billion in 2024, from $2.455 billion in 2023.

For the year, net income totalled $153.7 million or $2.20 per adjusted diluted share — a 10.7 per cent increase compared with net income of $138.9 million or $2.06 per adjusted diluted share in 2023.

“The efforts of our associates coast-to-coast enabled LFL to deliver revenue growth while the broader North American furniture retail industry reported sales declines,” said LFL president and CEO Mike Walsh in a statement. “Targeted pricing and promotional optimization enabled us to maintain order patterns and expand gross margins by 26 basis points.”

In the fourth quarter, revenue was $666.7 million. This amounted to a decrease of 2.9 per cent, mainly attributed to reduced furniture inventory caused by industry-wide overseas shipping delays. The loss of Canada Post as a key marketing channel during the holiday season due to strike action by workers may also have played a role.

Same store sales were down 3.2 per cent in the last three months of the year.

However, gross profit margin was 45.85 per cent, a 91-basis points increase driven by rate improvements in the furniture and appliance categories and favourable business mix.

Adjusted net income totalled $67.4 million, an increase of nearly 38 per cent.

Looking at 2025, Walsh said that with inventory levels normalizing and marketing channels now restored, LFL is well-positioned to continue upon its 115-plus-year legacy of market share gains and profitability, “leveraging its scale and omnichannel presence to deliver value to all Canadians.”

However, he added the company is watching the tariff situation with Canada’s southern neighbour.

“While less than 15 per cent of our purchases come from the United States, we will adjust accordingly,” he said.

LFL is the largest retailer of furniture, appliances and electronics in Canada. At the end of last year, the Toronto-based retail group operated a total of 299 stores across the country under the following banners: Leon’s, The Brick, Appliance Canada, The Brick Mattress Store and The Brick Outlet.

The company also operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.