By Kelly Cloonan

Shares of Flexsteel Industries climbed after the company reported quarterly sales at the higher end of its forecast, even as it expects a downbeat view for the furniture industry because of tariff concerns.

The stock rose 5% to $33.47 on Monday in after-hours trading. Through the close, shares are down more than 41% this year and have lost 15% over the past 12 months.

The furniture company posted a loss of $3.7 million, or 71 cents a share, for its fiscal third quarter ended March 31, compared with a profit of $1.8 million, or 33 cents a share, a year earlier.

Adjusted earnings per share were $1.13.

Revenue rose 6% to $114 million, at the upper end of the company's previous guidance range.

Chief Executive Derek Schmidt said new products and share gains with strategic accounts helped drive growth in its core markets.

For fiscal 2025, the company now expects sales growth between 5.5% to 7.2%, lowering the upper end of its previous range from 8%.

Entering its fiscal fourth quarter, the company faces a tough economic backdrop and substantial uncertainty after the Trump administration's recent reciprocal tariff proposals, Schmidt said.

Even before recent tariff announcements, many of the company's retail partners noted considerably slower traffic, he said, likely a result of sliding consumer confidence in the past several months.

Schmidt added he has a moderately pessimistic near-term outlook for the furniture industry as a result.

The company plans to manage spending to remain financially nimble as consumer demand shifts, he said, and will continue to strengthen its supply chain agility to minimize tariff risks.

"Despite these challenging conditions, we see opportunities to strengthen our competitive position and will remain aggressive in investing for future growth," he said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

April 21, 2025 18:11 ET (22:11 GMT)

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