Toronto, Ontario — February 25, 2026 — Leads & Copy —
Leon’s Furniture Limited (TSX: LNF) announced its financial results for the quarter ended December 31, 2025, today.
The company also declared a special dividend of $0.50 per common share.
System-wide sales for the quarter increased 0.8% to $813.0 million. Q4 revenue rose 0.7% to $671.4 million, driven by strong performance in the furniture category. Same-store sales increased 0.6%.
Gross profit margin improved 23 basis points to 46.08%, attributed to a favorable retail category sales mix and improved furniture rates from assortment and sourcing improvements. The SG&A rate increased by 13 basis points due to higher occupancy and amortization costs.
Net income was $51.0 million, compared to $67.9 million in the prior year. Adjusting for a one-time $23.4 million pre-tax settlement in Q4 2024, adjusted normalized net income for the quarter increased by $1.0 million, or 2.0%. Unrestricted liquidity stood at $603.0 million as of December 31, 2025, including cash, cash equivalents, debt and equity instruments, and the undrawn revolving credit facility.
For the year ended December 31, 2025, system-wide sales increased 2.8% to $3,088.9 million. Revenue was recorded at $2,573.7 million, up 3.0%, driven by strong performance in furniture and appliance categories. Same-store sales increased 3.0%.
Gross profit margin improved 65 basis points to 45.04%, driven by a strong furniture mix and margin rate improvement. The SG&A rate decreased by 24 basis points, primarily due to lower point-of-sale retail financing fees resulting from lower Bank of Canada interest rates.
Net income was $157.0 million, compared to $153.7 million in the prior year. Normalizing for the one-time gain from CURO in both years, adjusted normalized net income for the year increased by $22.2 million, or 16.6%.
President and CEO of LFL, Mike Walsh, stated that the company’s teams delivered outstanding value and experience, maintaining gross margin and cost discipline, which drove strong full-year results. He noted that system-wide sales grew 2.8% to $3.1 billion, normalized adjusted diluted EPS increased 16.5%, and the company continued to generate robust cash flow.
Walsh added that the fourth quarter unfolded as anticipated, with consumers being more deliberate in their discretionary purchases and promotional activity intensifying. Canada Post service disruptions and unfavorable weather comparisons also impacted results. Despite these challenges, system-wide sales were up 0.8%, gross margin expanded 23 basis points, and normalized adjusted diluted EPS grew by 1.3%.
The company has prioritized gaining market share by providing value to consumers for over 115 years. Supported by a coast-to-coast presence, omnichannel platform, sourcing capabilities, distribution network, and strong balance sheet, Leon’s Furniture Limited remains confident in its ability to grow market share and deliver long-term returns.
The company paid a quarterly dividend of $0.24 per common share on January 6, 2026, and an annual dividend on the convertible non-voting preferred shares of $0.44 on the same date. The Directors have declared a quarterly dividend of $0.24 per common share and a special dividend of $0.50 per common share, both payable on April 8, 2026, to shareholders of record on March 11, 2026.
LFL’s principal objective is to increase market share and profitability, focusing on effectively managing costs while investing in growth initiatives for online eCommerce sites and 300 store locations across Canada.
Leon’s Furniture Limited is the largest retailer of furniture, appliances, and electronics in Canada, with retail banners including Leon’s, The Brick, Brick Outlet, and The Brick Mattress Store. The company also operates as a commercial retailer of appliances to builders, developers, hotels, and property management companies through The Brick’s Midnorthern Appliance banner and Leon’s Appliance Canada banner. The Company operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.
Source: Leon’s Furniture Limited
