Noah Blackstein, B.A., CFA Leon's Furniture LNF-T BUY Apr 10, 2002

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Leon’s Furniture Limited (LNF) stock was up 10.72% on the month. LNF is the largest network of home furniture, appliances, electronics, and mattress stores in Canada. The Company operates five e-commerce sites and its repair service division. Adjusted diluted earnings per share at $0.70 per share were up 20.7%. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. eCommerce growth has been sticky. Strong growing top-line sales. Buyback program improves valuation. Inventory levels rising. Unlock Premium - Try 5i Free

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. eCommerce growth has been sticky. Strong growing top-line sales. Buyback program improves valuation. Inventory levels rising. Unlock Premium - Try 5i Free

Flat revenue for past few years, but Covid-19 helped.
Key issue is long term growth for the business.
High single digit growth not enough during recession.
Higher interest rates makes it harder for consumers to pay for discretionary items.

Incredibly well run. USD has an impact on them, as a lot of furniture comes from the US. Can expand. Big-ticket items may be challenged in short term. Increases dividend regularly. Pulled back, good time to buy. Watch for monetization of real estate holdings.

It has executed very well over the long run and works on cost structures. There could be another special dividend. It has lots of real estate and wants spin off a REIT. However a lot of their properties are not in the greatest areas so the REIT may not do as well as others. You could buy on the pullback and wait for a pop when/if the REIT is spun out.