Flexsteel Industries raises FY25 revenue $435M-$445M, one estimate $432.9M

Prior guidance was $427M-$440M. The company states: “The company now expects net sales to be down 1% to up 2%, including 1 to 2 points of benefit from incremental shipments related to the Enterprise Resource Planning transition, which is expected to reverse in the front half of the next fiscal year. Organic sales are now expected to be up 4% to up 7%, excluding about 2 points of negative impact from the divestiture of the company’s business in Argentina and about 3 points of negative impact from the divestiture of the VMS business. Excluding the incremental shipments related to the ERP transition, the company continues to expect organic sales to be up 3% to 5%. Gross margin is now expected to be up 125 to 150 basis points, primarily due to the benefits of holistic margin management efforts, partially offset by cost inflation and higher trade promotion spending. This compares to the previous expectation of 100 to 150 basis points. The company’s effective tax rate is now expected to be about 26%. Excluding the impact of the VMS sale, the company expects its fiscal year adjusted effective tax rate to be about 23%.”