Flexsteel jumps 20% after earnings beat despite tariff pressures

[Mid adoult couple walking at a furniture store while talking and smiling]
Hispanolistic

Flexsteel (NASDAQ:FLXS [https://seekingalpha.com/symbol/FLXS]) surged over 20% in premarket trading on Tuesday after beating quarterly estimates, overcoming tariff headwinds with strong performance in its core business and growth in new, expanded markets.

“While market conditions and macroeconomic uncertainty remain industry headwinds, we continued our growth momentum and delivered 3.4% sales growth in the quarter...," Derek Schmidt, CEO of Flexsteel Industries, said [https://seekingalpha.com/news/4486731-flexsteel-non-gaap-eps-of-1_40-beats-by-0_56-revenue-of-114_61m-beats-by-2_79m].

Additionally, Flexsteel (NASDAQ:FLXS [https://seekingalpha.com/symbol/FLXS]) delivered an adjusted operating margin of 9% in the quarter, which represents its ninth consecutive quarter of year-over-year improvement and a 340 basis point increase compared to the prior year.

For the first quarter of fiscal 2026, the company expects sales growth of 1% to 6% compared to the prior year quarter and an operating margin of 5.5% to 7%, as it flagged tariff risks, which represent a major risk to both demand and margins in the new year, according to the company.

"The margin risk from tariffs, notably the 20% tariff on imports from Vietnam, requires a multifaceted approach to mitigate, including supply chain adjustments, new cost savings initiatives, and limited pricing actions," the company said.

Besides tariffs, the most significant drivers of variability in the financial outlook are consumer demand and competitive pricing conditions, which are expected to be shaped by macro-economic factors, Flexsteel (FLXS [https://seekingalpha.com/symbol/FLXS]) added.

MORE ON FLEXSTEEL

* Flexsteel's Lower Share Price Is Not Enough Given The Consumer Discretionary Cycle Risk [https://seekingalpha.com/article/4791070-flexsteels-lower-share-price-is-not-enough-given-the-consumer-discretionary-cycle-risk]
* Seeking Alpha’s Quant Rating on Flexsteel [https://seekingalpha.com/symbol/FLXS/ratings/quant-ratings]
* Historical earnings data for Flexsteel [https://seekingalpha.com/symbol/FLXS/earnings]
* Dividend scorecard for Flexsteel [https://seekingalpha.com/symbol/FLXS/dividends/scorecard]
* Financial information for Flexsteel [https://seekingalpha.com/symbol/FLXS/income-statement]