Review of Leon's Furniture Limited

SEP 11, 2025 - Management mentioned the strong results were due to its disciplined execution and cost control. Though furniture sales were strong, investors need to keep in mind that there may be some ‘pull-through’ sales here as consumers aim to avoid possible tariff related price hikes. There continues to be potential upside from the spinout of the real estate portfolio that has been working on in recent quarters. In addition, LNF’s long-term growth story remains quite attractive. That being said, there is some uncertainty around the tariff situation between Canada and the U.S., which could negatively impact the company’s near-term profitability. To remain conservative, we are maintaining our rating at B+.