Leon’s cross-country reach is a big plus

Article Excerpt

Furniture and appliance retailing is a high-profit-margin business, but it’s tied to housing sales as well as consumer confidence. Both can vary from province to province. Right now Leon’s diversification across Canada cuts its risk compared to Quebec-focused BMTC. Here’s a look at both stocks: LEON’S FURNITURE $15.16 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares o/s: 77.6 million; Market cap: $1.2 billion; Divd. yield: 3.7%) has steadily increased the number of stores under its Leon’s banner from 27 in 2003 to today’s 86. In 2013, the company nearly quadrupled with its $700 million purchase of rival The Brick. That chain now has 217 locations across Canada and still operates separately. In the quarter ended June 30, 2019, Leon’s overall sales rose 2.6%, to a record $560.9 million from $546.7 million a year earlier. On a same-store basis, sales rose 1.9%. Excluding one-time items. the company earned $28.7 million in the latest quarter, up 27.1% from $22.6 million. Earnings per share rose 21.4%,…