Leon’s sitting pretty with revenue surge

While a new couch from Leon’s may not come with the bragging rights of a couch from La-Z-Boy, Leon’s patrons definitely have a leg up when it comes to frugality.

Looking at Leon’s website, a full-price recliner starts at $599, excluding tax. At La-ZBoy, a similar model will cost you $1,349 plus tax (although with the current sale, it is only $699 before taxes).

Founded over 100 years ago, the company — headquartered in Toronto — operates under banners such as Leon’s and The Brick.

In its second-quarter fiscal 2021 results, Leon’s reported an increase in revenue of 41 per cent to a best-ever $589 million, from $417 million in 2020, despite almost half of the company’s retail locations being closed due to lockdowns. Net income is up 82 per cent to $46 million, from $25 million in 2020.

Edward Leon, CEO of Leon’s during the second quarter, noted that the company “achieved double-digit revenue increases in all regions and product categories,” with a 41.1 per cent increase in same-store sales “driven by (Leon’s) scalable eCommerce business.” As of July 1, Leon retired and was replaced by Mike Walsh.

David Soberman, a professor of marketing at the Rotman School of Management at the University of Toronto, said that lead times for supply of products are closely tied to waves of the pandemic.

“If we find that our vaccines are very effective and the level of vaccination in the population is above a threshold, we could probably resist the waves. Once you resist the waves you have more of a normal (supply chain),” he said. “Disruptions in the supply chain can be anything from cities going into curfew, factories closing down due to an outbreak, or shipments being delayed because the ships are being quarantined. All of these things affect (global supply chains).”