DUBUQUE, Iowa - Flexsteel Industries, Inc. (NASDAQ:FLXS) has announced the appointment of Derek P. Schmidt as its new President and Chief Executive Officer, effective July 1, 2024. Schmidt will take over from Jerald K. Dittmer, who will step down as CEO on June 30, 2024, and retire from the company at the end of the year.
Schmidt joined Flexsteel in April 2020 as Chief Financial Officer & Chief Operating Officer and has since taken on additional responsibilities, including oversight of sales and marketing. His leadership has been pivotal in the company's transformation, focusing on growth in new markets, innovation, customer experience, and sustainable practices. Schmidt's nearly three-decade career spans various industries, with eleven years in the furniture sector.
The outgoing CEO, Dittmer, will serve as a Strategic Advisor to ensure a smooth transition before his retirement. Tom Levine, Board Chair, commended Dittmer for his transformative leadership and expressed enthusiasm for Flexsteel's future under Schmidt.
Flexsteel, known for its residential furniture and a unique steel drop-in seat spring, distributes products across the United States through e-commerce and a direct sales force. The company's transition in leadership is part of its ongoing strategy for long-term profitable growth.
This announcement is based on a press release statement issued by Flexsteel Industries, Inc.
InvestingPro Insights
As Flexsteel Industries (NASDAQ:FLXS) welcomes Derek P. Schmidt as its new President and CEO, investors are closely monitoring the company's financial health and stock performance. With a focus on innovation and market growth under Schmidt's leadership, it is essential to consider the current financial metrics and analyst expectations that could influence Flexsteel's trajectory.
InvestingPro data indicates Flexsteel boasts a market capitalization of $201.01 million, with a P/E ratio of 13.11, reflecting the company's valuation relative to its earnings. Notably, the company's P/E ratio has shown consistency, slightly adjusting to 13.02 over the last twelve months as of Q2 2024.
This stable valuation comes at a time when the company is trading at a low P/E ratio relative to near-term earnings growth, an InvestingPro Tip that suggests the stock may be undervalued given its growth prospects.
Despite a -11.94% decline in revenue growth over the last twelve months as of Q2 2024, Flexsteel has demonstrated a quarterly revenue growth of 7.48% in Q1 2024, indicating a potential turnaround in sales performance.
Moreover, the company has maintained its dividend payments for an impressive 54 consecutive years, with a current dividend yield of 1.6%, a testament to its commitment to shareholder returns.
Investors should also note the strong price performance, with a 30.69% total return over the last three months and a remarkable 123.46% return over the past year. This large price uptick over the last six months aligns with an InvestingPro Tip highlighting the stock's robust recent returns.
For those seeking more in-depth analysis and additional insights, InvestingPro offers several more tips on Flexsteel, which can be accessed through their platform. Remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools at your disposal, you can make more informed investment decisions regarding Flexsteel's future in the marketplace.
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