Leon’s Furniture (LNF) jumped 9% on the back of its Q3 results, as same-store sales growth continued moving in the right direction…

… and could flip positive in Q4 - with an easier Y/Y comparison, a shift in sales from Q3, and share gains in commercial appliance after a large competitor exited the market.

With management targeting a similar gross margin profile to last year, revenue growth should translate to leverage over fixed costs…

… to drive improved bottom line performance, assuming the company maintains its SG&A discipline…

… which investors are starting to price, with modest multiple expansion in recent months pushing LNF’s valuation above the long-term average.

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