Flexsteel views consumer spending shift from travel and entertainment to home goods an opportunity to set a new benchmark for future performance.
It’s no secret that, due to the pandemic, consumers are spending more time at home. And that means a shift in spending to products that will enhance their living spaces. To some, this may seem like a temporary lift in profits for the home furnishings industry. But Flexsteel views this as an opportunity to set a new benchmark for future performance.
“Our recent quarterly results are more than just the product of pandemic influences; they are actually the early fruits of the many strategic decisions and sweeping changes we’ve made over the past 18 months,” Jerry Dittmer, President and CEO of Flexsteel, recently told his organization in a virtual Town Hall meeting.
Experiencing Strong Quarterly Results
The results Dittmer alluded to were announced in Flexsteel’s quarterly report. The company indicated very strong performance, including double-digit organic growth and operating margins approaching the highest seen in their 127-year history. Flexsteel’s brick and mortar retail sales were up 15%, and their homestyles eCommerce brand nearly 40%. Flexsteel’s orders in retail home furnishings also saw a very impressive 60% growth in the quarter.
Increasing Capacity in 2021
Flexsteel says that building inventory to support elevated customer demand is a top priority, so they are also securing additional North American and international capacity in 2021. In fact, even though they face extended lead times for some globally sourced items, Flexsteel remains in a strong inventory position and continues to make aggressive moves to keep it that way.
“We’ve got record amounts of inventory both ready to ship and shipping,” David Crimmins, Flexsteel’s Vice President of Sales said. “We’re bringing more product in and expanding our warehousing footprint to support it along the way. Through our exclusive online portal, our retailers can see inventory real-time. They know we have a healthy inventory position on several key product groups—much better than our competition, they tell us,” Crimmins continued.
Capitalizing on the eCommerce Boom
Also fueling Flexsteel’s growth is the eCommerce boom in home furnishings. Earlier this year, Flexsteel began arming local independent retailers and large players with online content that’s driving consumers to their brick and mortar and online stores. By offering an exclusive assortment of homestyles products and by supporting their eCommerce enablement with a dedicated team of experts, Flexsteel intends to become an omnichannel heavyweight in home furnishings. They attribute recent growth in this arena to how efficient they’ve made it for their retailers to go to market.
For more information about Flexsteel and its transformation, visit www.flexsteel.com. And to learn more about homestyles, visit http://www.homestylesfurniture.com.
