Flexsteel Industries (FLXS) 10-Q 5 Feb 25 2025 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2024	Feb. 05, 2025
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2024
Securities Act File Number	0-5151
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Entity Registrant Name	FLEXSTEEL INDUSTRIES, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	42-0442319
Entity Address, Address Line One	385 BELL STREET
Entity Address, City or Town	DUBUQUE
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52001-7004
City Area Code	563
Local Phone Number	556-7730
Title of 12(b) Security	Common Stock
Trading Symbol	FLXS
Security Exchange Name	NASDAQ
Entity Central Index Key	0000037472
Current Fiscal Year End Date	--06-30
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,269,367
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
CURRENT ASSETS:
Cash and cash equivalents	$ 11,789	$ 4,761
Trade receivables - less allowances: December 31, 2024, $2,436, June 30, 2024, $2,440	36,310	44,238
Inventories	91,042	96,577
Other	9,910	8,098
Assets held for sale		1,707
Total current assets	149,051	155,381
NONCURRENT ASSETS:
Property, plant and equipment, net	36,414	36,709
Operating lease right-of-use assets	61,587	61,439
Deferred income taxes	8,606	8,607
Other assets	15,889	12,326
TOTAL ASSETS	271,547	274,462
CURRENT LIABILITIES:
Accounts payable - trade	20,712	25,830
Current portion of operating lease liabilities	8,035	7,517
Accrued liabilities:
Payroll and related items	7,482	12,059
Insurance	1,953	1,900
Sales and advertising related items	6,650	6,073
Other	6,036	7,027
Total current liabilities	50,868	60,406
LONG-TERM LIABILITIES:
Operating lease liabilities, less current maturities	57,774	58,076
Line of credit		4,822
Other liabilities	985	791
Total liabilities	109,627	124,095
SHAREHOLDERS' EQUITY:
Common stock - $1 par value; authorized 15,000 shares; 8,477 shares issued and 5,270 outstanding as of December 31, 2024; 8,407 shares issued and 5,200 outstanding as of June 30, 2024	8,477	8,407
Additional paid-in capital	39,694	39,573
Treasury stock, at cost; 3,207 shares as of December 31, 2024, and June 30, 2024	(71,731)	(71,731)
Retained earnings	185,480	174,118
Total shareholders' equity	161,920	150,367
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 271,547	$ 274,462

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 2,436	$ 2,440
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000,000	15,000,000
Common stock, issued	8,477,000	8,407,000
Common stock, outstanding	5,270,000	5,200,000
Treasury stock, shares	3,207,000	3,207,000

Consolidated Statements Of Inco

Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Consolidated Statements Of Income And Comprehensive Income [Abstract]
Net sales	$ 108,483	$ 100,108	$ 212,490	$ 194,711
Cost of goods sold	85,678	78,158	167,318	154,351
Gross profit	22,805	21,950	45,172	40,360
Selling, general and administrative expenses	16,142	17,366	32,462	33,858
(Gain) on disposal of assets held for sale	(4,991)		(4,991)
Operating income	11,654	4,584	17,701	6,502
Interest expense	19	489	70	1,059
Interest (income)	(31)		(31)
Income before income taxes	11,666	4,095	17,662	5,443
Income tax provision	2,612	1,044	4,468	1,640
Net income and comprehensive income	$ 9,054	$ 3,051	$ 13,194	$ 3,803
Weighted average number of common shares outstanding:
Basic	5,247	5,184	5,225	5,183
Diluted	5,582	5,324	5,554	5,360
Earnings per share of common stock:
Basic	$ 1.73	$ 0.59	$ 2.53	$ 0.73
Diluted	$ 1.62	$ 0.57	$ 2.38	$ 0.71

Consolidated Statements Of Chan

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Total Par Value Of Common Shares [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning at Jun. 30, 2023	$ 141,621	$ 8,292	$ 36,605	$ (70,072)	$ 166,796
Stock-based compensation	911	8	903
Vesting of restricted stock units and restricted shares	(647)	44	(691)
Treasury stock purchases	(455)			(455)
Cash dividends declared	(815)				(815)
Net Income (Loss)	752				752
Balance, ending at Sep. 30, 2023	141,367	8,344	36,817	(70,527)	166,733
Balance, beginning at Jun. 30, 2023	141,621	8,292	36,605	(70,072)	166,796
Net Income (Loss)	3,803
Balance, ending at Dec. 31, 2023	143,533	8,357	37,697	(71,499)	168,978
Balance, beginning at Sep. 30, 2023	141,367	8,344	36,817	(70,527)	166,733
Stock-based compensation	934	9	925
Vesting of restricted stock units and restricted shares	(41)	4	(45)
Treasury stock purchases	(972)			(972)
Cash dividends declared	(806)				(806)
Net Income (Loss)	3,051				3,051
Balance, ending at Dec. 31, 2023	143,533	8,357	37,697	(71,499)	168,978
Balance, beginning at Jun. 30, 2024	150,367	8,407	39,573	(71,731)	174,118
Stock-based compensation	1,138	3	1,135
Stock options exercised	(32)	4	(36)
Cash dividends declared	(910)				(910)
Net Income (Loss)	4,140				4,140
Balance, ending at Sep. 30, 2024	154,703	8,414	40,672	(71,731)	177,348
Balance, beginning at Jun. 30, 2024	150,367	8,407	39,573	(71,731)	174,118
Net Income (Loss)	13,194
Balance, ending at Dec. 31, 2024	161,920	8,477	39,694	(71,731)	185,480
Balance, beginning at Sep. 30, 2024	154,703	8,414	40,672	(71,731)	177,348
Stock-based compensation	963	2	961
Vesting of restricted stock units and restricted shares	(13)	(1)	(14)
Stock options exercised	1,865	60	1,925
Cash dividends declared	(922)				(922)
Net Income (Loss)	9,054				9,054
Balance, ending at Dec. 31, 2024	$ 161,920	$ 8,477	$ 39,694	$ (71,731)	$ 185,480

Consolidated Statements Of Ch_2

Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2024	Jun. 30, 2023
Common stock, par value	$ 1
Total Par Value Of Common Shares [Member]
Common stock, par value	$ 1	$ 1

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
OPERATING ACTIVITIES:
Net Income (Loss)	$ 13,194	$ 3,803
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	1,853	1,899
Deferred income taxes	1	84
Stock-based compensation expense	2,101	1,845
Change in provision for losses on accounts receivable	4	(140)
(Gain)/loss on disposition of capital assets	(4,987)	34
Changes in operating assets and liabilities:
Trade receivables	7,924	6,907
Inventories	5,535	16,838
Other current assets	(2,869)	(2,128)
Other assets	(3,563)	(5,297)
Accounts payable - trade	(5,353)	(4,991)
Accrued liabilities	(4,940)	(1,751)
Other long-term liabilities	191	63
Net cash provided by operating activities	9,091	17,166
INVESTING ACTIVITIES:
Proceeds from sales of investments	1,155
Proceeds from the sale of capital assets	6,704
Capital expenditures	(1,334)	(3,058)
Net cash provided by (used in) investing activities	6,525	(3,058)
FINANCING ACTIVITIES:
Dividends paid	(1,760)	(1,671)
Treasury stock purchases		(1,427)
Proceeds from line of credit	202,344	180,524
Payments on line of credit	(207,262)	(190,899)
Proceeds from issuance of common stock	141
Shares withheld for tax payments on vested shares and options exercised	(2,051)	(688)
Net cash (used in) financing activities	(8,588)	(14,161)
Increase (decrease) in cash and cash equivalents	7,028	(53)
Cash and cash equivalents at beginning of the period	4,761	3,365
Cash and cash equivalents at end of the period	11,789	3,312
SUPPLEMENTAL INFORMATION
Interest paid	106	1,104
Interest received	31
Cash paid for income taxes, net	6,053	1,724
Capital expenditures in accounts payable	$ 258	$ 382

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 9,054	$ 4,140	$ 3,051	$ 752	$ 13,194	$ 3,803

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Basis Of Presentation And Descr

Basis Of Presentation And Description Of Business	6 Months Ended
	Dec. 31, 2024
Basis Of Presentation And Description Of Business [Abstract]
Basis Of Presentation And Description Of Business	1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel” or “Our”) is one of the largest manufacturers, importers, and marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which the name “Flexsteel” is derived. The Company distributes its products throughout the United States through its e-commerce channel and direct sales force. BASIS OF PRESENTATION – The unaudited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information contained in the Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such Consolidated Financial Statements. Operating results for the three and six months ended December 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2025. Certain information and footnote disclosures normally included in the Consolidated Financial Statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the significant accounting policies in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 , appropriately represent, in all material respects, the current status of accounting policies.

Inventories

Inventories	6 Months Ended
	Dec. 31, 2024
Inventory, Net [Abstract]
Inventories	2. INVENTORIES A comparison of inventories is as follows: December 31, June 30, (in thousands) 2024 2024 Raw materials $ 12,584 $ 14,030 Work in process and finished parts 2,840 2,654 Finished goods 75,618 79,893 Total $ 91,042 $ 96,577

Assets Held For Sale

Assets Held For Sale	6 Months Ended
	Dec. 31, 2024
Assets Held For Sale [Abstract]
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract]	3. ASSETS HELD FOR SALE The Company completed the sale of its Dublin, Georgia facility as part of a restructuring plan in the quarter ended December 31, 2024. The company received proceeds of $ 6.7 million and recorded a pre-tax gain of $ 5.0 million related to the sale.

Leases

Leases	6 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Leases	4. LEASES The Company accounts for its leases in accordance with ASC 842, Leases . ASC 842 requires lessees to (i) recognize a right-of-use asset (“ROU asset”) and a lease liability that is measured at the present value of the remaining lease payments on the Consolidated Balance Sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease-related cash payments within operating and financing activities. The Company made an accounting policy election to not recognize short-term leases on the Consolidated Balance Sheets and all non-lease components, such as common area maintenance, were excluded. At any given time during the lease term, the lease liability represents the present value of the remaining lease payments, and the ROU asset is measured as the amount of the lease liability, adjusted for pre-paid rent, unamortized initial direct costs, and the remaining balance of lease incentives received. Both the lease ROU asset and lease liability are reduced to zero at the end of the lease term. The Company leases distribution centers and warehouses, manufacturing facilities, showrooms, and office space. At the lease inception date, the Company determines if an arrangement is, or contains a lease. Some of the Company’s leases include options to renew at similar terms. The Company assesses these options to determine if the Company is reasonably certain of exercising these options based on relevant economic and financial factors. Options that meet these criteria are included in the lease term at the lease commencement date. For purposes of measuring the Company’s ROU asset and lease liability, the discount rate utilized by the Company was based on the average interest rates effective for the Company’s line of credit. Some of the Company’s leases contain variable rent payments, including common area maintenance and utilities. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability. The components of the Company’s leases excluding the impact of sublease income reflected on the Company’s Consolidated Statements of Income were as follows: Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Operating lease expense $ 2,509 $ 2,384 $ 4,987 $ 4,808 Variable lease expense 393 524 912 970 Total lease expense $ 2,902 $ 2,908 $ 5,899 $ 5,778 Other information related to leases and future minimum lease payments under non-cancelable operating leases were as follows: Six Months Ended December 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 4,918 $ 4,663 Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease $ 594 $ 1,119 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 4,119 $ 797 Weighted-average remaining lease term (in years): Operating leases 7.6 8.6 Weighted-average discount rate: Operating leases 3.3 % 3.1 % Future minimum lease payments under non-cancelable operating leases were as follows: December 31, 2024 Remaining payments in FY2025 $ 4,999 FY2026 10,145 FY2027 10,315 FY2028 10,081 FY2029 9,001 Thereafter 29,601 Total future minimum lease payments $ 74,142 Less imputed interest 8,333 Lease liability $ 65,809

Credit Arrangements

Credit Arrangements	6 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Credit Arrangements	5. CREDIT ARRANGEMENTS On September 8, 2021, the Company, as the borrower, entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (the “Lender”), and the other lenders party thereto. The Credit Agreement has a five-year term and provides for up to an $ 85 million revolving line of credit. Subject to certain conditions, the Credit Agreement also provides for the issuance of letters of credit in an aggregate amount up to $ 5 million which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness owed to a prior lender and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all its assets, excluding real property. The Credit Agreement contains customary representations, warranties, and covenants, including a financial covenant to maintain a fixed coverage ratio of not less than 1.00 to 1.00. In addition, the Loan Agreement places restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, and to merge or consolidate with other entities. As of December 31, 2024, management believes the Company was in compliance with all covenants. On April 18, 2022, the Company, as the borrower, entered into a first amendment to the Credit Agreement (“First Amendment to the Credit Agreement”), with the Lender and the lenders thereto. The amendment to the Credit Agreement changed the definition of the term ‘Payment Conditions’ and further defined default or event of default and the calculation of the Fixed Charge Coverage Ratio. Subject to certain conditions, borrowings under the Credit Agreement initially bore interest at LIBOR plus 1.25 % or 1.50 % per annum. On May 24, 2023, the Company entered into a second amendment to the Credit Agreement ("Second Amendment to the Credit Agreement") with the Lender to transition the applicable interest rate from LIBOR to Secured Overnight Financing Rate ("SOFR"). Effective as of the date of the Second Amendment to the Credit Agreement, borrowings under the amended Credit Agreement bear interest at SOFR plus 1.36 % to 1.61 %, or an effective interest rate of 5.82 %, on December 31, 2024. As of December 31, 2024, there were no outs tanding borrowings under the Credit Agreement, exclusive of fees and letters of credit. Letters of credit outstanding with the Lender as of December 31, 2024, totaled $ 0.9 million.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	6. INCOME TAXES The provision for income taxes for the interim periods is based on an estimate of the Company’s annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The Company’s effective tax rate for the three months ended December 31, 2024, and December 31, 2023, was 22.4 % and 25.5 % , respectively. The Company's effective tax rate for the six months ended December 31, 2024 and 2023 , was 25.3 % and 30.1 %, respectively. For the three and six months ended December 31, 2024, the effective tax rate differs from the statutory tax rate o f 21 % primarily due to state taxes and the impact of foreign operations. For the three and six months ended December 31, 2023, the effective tax rate differs from the statutory tax rate of 21 % d ue to nondeductible stock compensation, state taxes, and the impact of foreign operations .

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Stock-Based Compensation	7. STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation plans in accordance with ASC 718, Stock Compensation , which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period. Restricted shares and restricted stock units (“RSUs”) generally vest over 1 to 3 years . Stock options are granted at an exercise price equal to the fair value of the Company’s common stock price at the grant date and are exercisable for up to 10 years from the date of grant. Stock-based compensation is included in selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. Forfeitures are recognized as incurred. The following table is a summary of total stock-based compensation expenses for the three and six months ended December 31, 2024 and 2023. Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Total stock-based compensation expense $ 963 $ 934 $ 2,101 $ 1,845 On December 14, 2022, the Company’s shareholders approved the Flexsteel Industries, Inc. 2022 Equity Incentive Plan (“2022 Plan”). The 2022 Plan replaced the Long-Term Incentive Compensation Plan (“LTIP”) and the 2013 Omnibus Stock Plan (collectively, the “Prior Plans”). No further awards will be made under either of the Prior Plans, but these Prior Plans will continue to govern awards previously granted under them. (1) 2022 Equity Incentive Plan The 2022 Plan is a long-term incentive plan pursuant to which awards may be granted to certain employees, independent contractors and directors of the Company, in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares or other stock-based awards. For periods beginning on or after July 1, 2023, restricted stock units ("RSUs") and performance stock units ("PSUs") granted to officers and key employees as part of long-term compensation programs are issued from the 2022 Plan. RSUs and PSUs awarded from the 2022 Plan are included in the Long-Term Incentive Compensation or Restricted Share and RSUs tables below. (2) Long-Term Incentive Compensation Plan The LTIP provided for PSUs to be awarded to officers and key employees based on performance goals set by the Compensation Committee of the Board of Directors (the “Committee”). In conjunction with each grant of PSUs, the Committee granted RSUs under the 2013 Omnibus Stock Plan that vested at the end of three years . No further awards will be issued under this plan. (3) 2013 Omnibus Stock Plan The 2013 Omnibus Stock Plan was for key employees, officers and directors and provided for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, and performance units . No further awards will be issued under this plan. Long-Term Incentive Compensation The table below sets forth, as of December 31, 2024 , the number of unvested PSUs granted at the target performance level for the 2023-2025, 2024-2026, and 2025-2027 performance periods under the 2022 Plan and LTIP (as applicable) and the number of unvested RSUs granted in conjunction with the PSUs. For PSUs awarded for the three year performance periods ending June 30, 2025, 2026 and 2027, achievement is based on meeting performance goals set for each year within the three year period. The Committee selected Adjusted Operating Income as the performance metric for the performance periods ending June 30, 2025, 2026, and 2027. Time-Based Vest (RSUs) Performance-Based Vest (PSUs) Total Weighted Average Weighted Average Weighted Average Fair Value Fair Value Fair Value (shares in thousands) Shares Per Share Shares Per Share Shares Per Share Unvested as of June 30, 2024 97 $ 17.92 182 $ 22.07 279 $ 20.65 Granted 31 31.66 46 31.66 77 31.66 Vested — — — — — — Forfeited — — ( 37 ) 39.07 ( 37 ) 39.07 Unvested as of December 31, 2024 128 $ 21.25 191 $ 21.09 319 $ 21.17 Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $ 3.2 million as of December 31, 2024, which is expected to be recognized over a weighted-average period o f 1.4 y ears. Restricted Shares and RSUs A summary of the activity in the Company’s unvested restricted shares and unvested RSUs (not granted in conjunction with PSUs) as of December 31, 2024, is as follows: Weighted Average Shares Fair Value (in thousands) Per Share Unvested as of June 30, 2024 16 $ 21.96 Granted 4 31.66 Vested ( 1 ) 20.08 Forfeited — 20.33 Unvested as of December 31, 2024 19 $ 24.10 Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) w as $ 0.3 millio n as of December 31, 2024, which is expected to be recognized over a weighted-average perio d of 1 .5 years. Options A summary of the activity of the Company’s stock option plans as of December 31, 2024, is presented below: Weighted Shares Average (in thousands) Exercise Price Outstanding at June 30, 2024 180 $ 20.01 Exercised ( 101 ) 19.26 Cancelled ( 12 ) 34.51 Outstanding at December 31, 2024 67 $ 18.54 The following table summarizes information for options outstanding at December 31, 2024: Options Weighted Average Range of Outstanding Remaining Exercise Prices (in thousands) Life (Years) Price $ 9.97 - 15.14 43 5.3 $ 10.62 18.30 - 19.72 6 6.4 18.30 21.96 - 27.57 3 4.0 24.49 31.06 - 32.80 6 3.7 32.40 43.09 - 47.45 9 1.7 45.29 $ 9.97 - 47.45 67 4.8 $ 18.54 There is no unrecognized stock-based compensation expense related to these options as of December 31, 2024. Stock-based compensation granted outside a plan During the quarter ended June 30, 2020, the Company awarded its former Chief Financial Officer/Chief Operating Officer (current Chief Executive Officer) 79,000 options outside of any Company stock plans. All 79,000 options remain outstanding as of December 31, 2024 , with an exercise price of $ 9.97 and a remaining life of 5.3 y ears. There is no remaining unrecognized stock-based compensation expense related to these options.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Dec. 31, 2024
Earnings Per Share
Earnings Per Share	8. EARNINGS PER SHARE Basic earnings per share (EPS) of common stock are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock include the dilutive effect of potential common shares outstanding. The Company’s potential common shares outstanding are stock options, shares associated with the long-term incentive compensation plans, and non-vested restricted stock units. The Company calculates the dilutive effect of outstanding options and restricted stock units using the treasury stock method. Anti-dilutive options are not included in the computation of diluted EPS when their exercise price is greater than the average closing market price of the common shares. Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Basic shares 5,247 5,184 5,225 5,183 Potential common shares: Stock options 111 66 105 74 Non-vested restricted stock units and restricted shares 224 74 224 103 Diluted shares 5,582 5,324 5,554 5,360 Anti-dilutive shares — 136 — 136 Cash dividends declared per common shar e were $ 0.17 for the three and six months ended December 31, 2024, and we re $ 0.15 for the three and six months ended December 31, 2023 , respectively.

Commitments And Contingencies

Commitments And Contingencies	6 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	9. COMMITMENTS AND CONTINGENCIES Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Dec. 31, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	10. RECENT ACCOUNTING PRONOUNCEMENTS In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023 09 “Improvements to Income Tax Disclosures.” The amendments in this ASU are intended to increase transparency through improvements to income tax disclosures primarily related to the income tax rate reconciliation and income taxes paid information. This ASU will become effective for us for the annual period beginning in fiscal year 2026, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on our related disclosures, but do not expect this guidance will have a material impact on our financial position and results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires business entities to enhance disclosures about significant segment expenses. The ASU also requires that a public entity with a single reportable segment, like the Company, provide all of the disclosures required as part of ASU 2023-07 and all existing disclosures required by Topic 280. The ASU will become effective for us for the annual period beginning in fiscal year 2025 and for interim periods beginning with our 2026 fiscal year, on a retrospective basis, and early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on our related disclosures, but do not expect this guidance will have a material impact on our financial position and results of operations.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2024
Basis Of Presentation And Description Of Business [Abstract]
Description Of Business	DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel” or “Our”) is one of the largest manufacturers, importers, and marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which the name “Flexsteel” is derived. The Company distributes its products throughout the United States through its e-commerce channel and direct sales force.
Basis Of Presentation	BASIS OF PRESENTATION – The unaudited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information contained in the Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such Consolidated Financial Statements. Operating results for the three and six months ended December 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2025. Certain information and footnote disclosures normally included in the Consolidated Financial Statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the significant accounting policies in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 , appropriately represent, in all material respects, the current status of accounting policies.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2024
Inventory, Net [Abstract]
Comparison Of Inventories	December 31, June 30, (in thousands) 2024 2024 Raw materials $ 12,584 $ 14,030 Work in process and finished parts 2,840 2,654 Finished goods 75,618 79,893 Total $ 91,042 $ 96,577

Leases (Tables)

Leases (Tables)	6 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Components Of Leases Excluding Impact Of Sublease Income	Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Operating lease expense $ 2,509 $ 2,384 $ 4,987 $ 4,808 Variable lease expense 393 524 912 970 Total lease expense $ 2,902 $ 2,908 $ 5,899 $ 5,778
Other Information Related To Leases And Future Minimum Lease Payments	Six Months Ended December 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 4,918 $ 4,663 Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease $ 594 $ 1,119 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 4,119 $ 797 Weighted-average remaining lease term (in years): Operating leases 7.6 8.6 Weighted-average discount rate: Operating leases 3.3 % 3.1 %
Future Minimum Lease Payments	December 31, 2024 Remaining payments in FY2025 $ 4,999 FY2026 10,145 FY2027 10,315 FY2028 10,081 FY2029 9,001 Thereafter 29,601 Total future minimum lease payments $ 74,142 Less imputed interest 8,333 Lease liability $ 65,809

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Total Stock-Based Compensation Expense	Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Total stock-based compensation expense $ 963 $ 934 $ 2,101 $ 1,845
Schedule Of Stock Option Plans	Weighted Shares Average (in thousands) Exercise Price Outstanding at June 30, 2024 180 $ 20.01 Exercised ( 101 ) 19.26 Cancelled ( 12 ) 34.51 Outstanding at December 31, 2024 67 $ 18.54
Schedule Of Options Outstanding And Exercisable	Options Weighted Average Range of Outstanding Remaining Exercise Prices (in thousands) Life (Years) Price $ 9.97 - 15.14 43 5.3 $ 10.62 18.30 - 19.72 6 6.4 18.30 21.96 - 27.57 3 4.0 24.49 31.06 - 32.80 6 3.7 32.40 43.09 - 47.45 9 1.7 45.29 $ 9.97 - 47.45 67 4.8 $ 18.54
Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule Of Unvested Shares - PSUs And RSUs	Weighted Average Shares Fair Value (in thousands) Per Share Unvested as of June 30, 2024 16 $ 21.96 Granted 4 31.66 Vested ( 1 ) 20.08 Forfeited — 20.33 Unvested as of December 31, 2024 19 $ 24.10
Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule Of Unvested Shares - PSUs And RSUs	Time-Based Vest (RSUs) Performance-Based Vest (PSUs) Total Weighted Average Weighted Average Weighted Average Fair Value Fair Value Fair Value (shares in thousands) Shares Per Share Shares Per Share Shares Per Share Unvested as of June 30, 2024 97 $ 17.92 182 $ 22.07 279 $ 20.65 Granted 31 31.66 46 31.66 77 31.66 Vested — — — — — — Forfeited — — ( 37 ) 39.07 ( 37 ) 39.07 Unvested as of December 31, 2024 128 $ 21.25 191 $ 21.09 319 $ 21.17

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Dec. 31, 2024
Earnings Per Share
Schedule Of Earnings Per Share, Basic And Diluted	Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2024 2023 2024 2023 Basic shares 5,247 5,184 5,225 5,183 Potential common shares: Stock options 111 66 105 74 Non-vested restricted stock units and restricted shares 224 74 224 103 Diluted shares 5,582 5,324 5,554 5,360 Anti-dilutive shares — 136 — 136

Inventories (Comparison Of Inve

Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Inventory, Net [Abstract]
Raw materials	$ 12,584	$ 14,030
Work in process and finished parts	2,840	2,654
Finished goods	75,618	79,893
Total	$ 91,042	$ 96,577

Assets Held For Sale (Narrative

Assets Held For Sale (Narrative) (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2024 USD ($)
Assets Held For Sale [Abstract]
Proceeds from the sale of capital assets	$ 6,704
Pretax gain related to sale	$ 5,000

Leases (Components Of Leases Ex

Leases (Components Of Leases Excluding Impact Of Sublease Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease expense	$ 2,509	$ 2,384	$ 4,987	$ 4,808
Variable lease expense	393	524	912	970
Total lease expense	$ 2,902	$ 2,908	$ 5,899	$ 5,778

Leases (Other Information Relat

Leases (Other Information Related To Leases And Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid operating leases	$ 4,918	$ 4,663
Cash received from subleasing of operating lease: Operating cash flows received from subleasing of operating lease	594	1,119
Right-of-use assets obtained in exchange for lease liabilities: Operating leases	$ 4,119	$ 797
Weighted-average remaining lease term (in years): Operating leases	7 years 7 months 6 days	8 years 7 months 6 days
Weighted-average discount rate: Operating leases	3.30%	3.10%

Leases (Future Minimum Lease Pa

Leases (Future Minimum Lease Payments) (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Leases [Abstract]
Remaining payments in FY2025	$ 4,999
FY2026	10,081
FY2027	10,315
FY2028	10,145
FY2029	9,001
Thereafter	29,601
Total future minimum lease payments	74,142
Less imputed interest	8,333
Lease liability	$ 65,809

Credit Arrangements (Narrative)

Credit Arrangements (Narrative) (Details)		3 Months Ended
	Sep. 08, 2021 USD ($)	Dec. 31, 2024 USD ($)
Short-term Debt [Line Items]
Letters of credit outstanding		$ 900,000
Credit Agreement [Member] | Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Interest rate	1.50%
Basis spread on interest rate	1.25%
Effective interest rate		5.82%
Debt term	5 years
Fixed coverage ratio		1
Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | Maximum [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 85,000,000
Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | SOFR [Member] | Maximum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.61%
Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | SOFR [Member] | Minimum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.36%
Credit Agreement [Member] | Wells Fargo Bank N.A. [Member] | Letter Of Credit [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 5,000,000
Secured Credit Agreement [Member] | Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Line of credit outstanding		$ 0

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Effective Income Tax Rate, Continuing Operations	22.40%	25.50%	25.30%	30.10%
Effective federal statutory income tax rate	21%	21%	21%	21%

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2024	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options remain outstanding		67,000	180,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are exercisable		10 years
Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares		$ 300
Total unrecognized stock-based compensation, expected period		6 months
Former Chief Financial Officer Chief Operating Officer (Current Chief Executive Officer) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares	$ 0
Remaining life		5 years 3 months 18 days
Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU award description		For PSUs awarded for the three year performance periods ending June 30, 2025, 2026 and 2027, achievement is based on meeting performance goals set for each year within the three year period. The Committee selected Adjusted Operating Income as the performance metric for the performance periods ending June 30, 2025, 2026, and 2027.
Long-Term Incentive Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares		$ 3,200
Total unrecognized stock-based compensation, expected period		1 year 4 months 24 days
Stock Option Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants		0
Omnibus Stock Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		3 years
Shares available for future grants		0
Stock-based Compensation Outside A Plan [Member] | Former Chief Financial Officer Chief Operating Officer (Current Chief Executive Officer) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued under stock option plans	79,000
Weighted average exercise price of options		$ 9.97
Options remain outstanding		79,000
Minimum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		1 year
Maximum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		3 years

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Total stock-based compensation expense	$ 963	$ 934	$ 2,101	$ 1,845

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule Of Unvested Shares - Long-Term Incentive Compensation Plan RSUs) (Details) - Long-Term Incentive Compensation Plan [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares | shares	279
Granted, Shares | shares	77
Forfeited, Shares | shares	(37)
Unvested at the end of period, Shares | shares	319
Unvested at the beginning of period, Weighted average fair value per share | $ / shares	$ 20.65
Granted, Weighted average fair value per share | $ / shares	31.66
Forfeited, Weighted average fair value per share | $ / shares	39.07
Unvested at the end of period, Weighted average fair value | $ / shares	$ 21.17
Time Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares | shares	97
Granted, Shares | shares	31
Unvested at the end of period, Shares | shares	128
Unvested at the beginning of period, Weighted average fair value per share | $ / shares	$ 17.92
Granted, Weighted average fair value per share | $ / shares	31.66
Unvested at the end of period, Weighted average fair value | $ / shares	$ 21.25
Performance Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares | shares	182
Granted, Shares | shares	46
Forfeited, Shares | shares	(37)
Unvested at the end of period, Shares | shares	191
Unvested at the beginning of period, Weighted average fair value per share | $ / shares	$ 22.07
Granted, Weighted average fair value per share | $ / shares	31.66
Forfeited, Weighted average fair value per share | $ / shares	39.07
Unvested at the end of period, Weighted average fair value | $ / shares	$ 21.09

Stock-Based Compensation (Sch_2

Stock-Based Compensation (Schedule Of Unvested Shares - PSUs And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares | shares	16
Granted, Shares | shares	4
Vested, Shares | shares	(1)
Unvested at the end of period, Shares | shares	19
Unvested at the beginning of period, Weighted average fair value per share	$ 21.96
Granted, Weighted average fair value per share	31.66
Vested, Weighted average fair value per share	20.08
Forfeited, Weighted average fair value per share	20.33
Unvested at the end of period, Weighted average fair value	$ 24.1

Stock-Based Compensation (Sch_3

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Shares, Outstanding at beginning balance | shares	180
Shares, Exercised | shares	(101)
Shares, Cancelled | shares	(12)
Shares, Outstanding at ending balance | shares	67
Weighted Average Exercise Price, Outstanding at beginning balance | $ / shares	$ 20.01
Weighted Average Exercise Price, Exercised | $ / shares	19.26
Weighted Average Exercise Price, Canceled | $ / shares	34.51
Weighted Average Exercise Price, Outstanding at ending balance | $ / shares	$ 18.54

Stock-Based Compensation (Sch_4

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	6 Months Ended
	Dec. 31, 2024 $ / shares shares
9.97 - 15.14 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	$ 9.97
Range of Price Upper	$ 15.14
Options Outstanding | shares	43
Weighted Average Remaining Life (Years)	5 years 3 months 18 days
Weighted Average, Exercise Price	$ 10.62
18.30 - 19.72 Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	18.30
Range of Price Upper	$ 19.72
Options Outstanding | shares	6
Weighted Average Remaining Life (Years)	6 years 4 months 24 days
Weighted Average, Exercise Price	$ 18.30
21.96 - 27.57 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	21.96
Range of Price Upper	$ 27.57
Options Outstanding | shares	3
Weighted Average Remaining Life (Years)	4 years
Weighted Average, Exercise Price	$ 24.49
31.06 - 32.80 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	31.06
Range of Price Upper	$ 32.80
Options Outstanding | shares	6
Weighted Average Remaining Life (Years)	3 years 8 months 12 days
Weighted Average, Exercise Price	$ 32.4
43.09 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	43.09
Range of Price Upper	$ 47.45
Options Outstanding | shares	9
Weighted Average Remaining Life (Years)	1 year 8 months 12 days
Weighted Average, Exercise Price	$ 45.29
9.97 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	9.97
Range of Price Upper	$ 47.45
Options Outstanding | shares	67
Weighted Average Remaining Life (Years)	4 years 9 months 18 days
Weighted Average, Exercise Price	$ 18.54

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share
Dividends declared per common share	$ 0.17	$ 0.15	$ 0.17	$ 0.15

Earnings Per Share (Schedule Of

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share
Basic shares	5,247	5,184	5,225	5,183
Stock options	111	66	105	74
Non-vested restricted stock units and restricted shares	224	74	224	103
Diluted shares	5,582	5,324	5,554	5,360
Anti-dilutive shares	0	136	0	136