Flexsteel Industries, Inc. (FLXS) stated first quarter financial results.
For the first quarter, net sales were $113.50M, down 5.3% to prior year quarter. Residential reduced 5.6% within the quarter mainly driven by products sold through ecommerce. The Company practiced higher returns, allowances and promotional costs related to the sales of its ecommerce products as these sales continue to stabilize after the partial implementation of the business information system in the fourth quarter. On a sequential quarter basis, ecommerce product volume improved mid-single digits. Contract net sales reduced 3.3% because of volume declines in commercial office products as we intentionally scaled back our offering in this category to improve profitability offset by strong double-digit growth in our recreational vehicle products.
During the prior year quarter, the Company accomplished a $6.50M sale of a facility and recognized a pre-tax gain of $1.80M. On an after-tax basis, the gain represents $1.10M or $0.14 per share.
Working capital (current assets less current liabilities) at September 30, 2018 was $140.0M contrast to $149.0M at June 30, 2018. Changes in working capital include decreases of $6.0M in inventory, $4.0M in cash and cash equivalents and increases of $2.0M in accounts payable and $2.0M in investments.
The Company offered net profit margin of 2.60% while its gross profit margin was 19.40%. ROE was recorded as 5.30% while beta factor was 1.81. The stock, as of recent close, has shown the weekly downbeat performance of -1.90% which was maintained at -48.20% in this year.