Topic: How To Invest

Stock Pickers Digest Hotline – Friday, August 25, 2017

Article Excerpt

LEON’S FURNITURE LTD., $18.15, symbol LNF on Toronto, has steadily increased the number of stores under its Leon’s banner from 27 in 2003 to today’s 86. In March 2013, the company nearly quadrupled in size with the $700 million purchase of its main rival, The Brick. That chain now has 217 locations across Canada and still operates separately. In the three months ended June 30, 2017, Leon’s overall sales rose 4.1%, to $537.6 million from $516.2 million a year earlier. On a same-store basis, sales gained 1.0%. The company earned $20.0 million, or $0.28 a share, in the quarter. That’s an increase of 28.4% from $15.5 million, or $0.22, a year earlier. The growth came mostly from the strong sales, but also from cost cutting. Growth by acquisition can be risky, especially with a deal as big as the Brick purchase. However, the move has enhanced long-term prospects for Leon’s. It has also contributed to dividend increases. Leon’s raised that quarterly payment by 20.0% with…