Despite a lackluster retail environment and modest sales growth, Leon’s Furniture said profits for the third quarter increased 23% on a per share basis, driven mostly by its acquisition of archrival The Brick in March 2013.

Canada’s largest full-line furniture retailer said that for the three months ending Sept. 30, system-wide sales were C$629.1 million, up ever-so-slightly from the C$628.6 million for the comparable period of 2013.

Sales by the company’s 199 corporate stores totalled C$531.7 million, up 0.6%. Overall same-store sales growth was 1.0%.

Sales by its 102 franchise stores were C$97.5 million, down 2.5% from the C$100.0 million for the comparable period.

Net income was C$27.3 million or 38 cents per common, compared with C$21.8 million or 31 cents per common share, up 23% on a per share basis.

“Despite a difficult start in the first quarter of 2014, we are pleased by the increase in profits for the second and third quarter of 2014 versus the prior year,” Terry Leon, the publicly held but family-managed retailer’s longtime president and CEO, said in a note to shareholders. “We are also encouraged by the increase in same store-sales in the third quarter 2014 compared to the prior year 2013.”

He said integration and backroom synergies between the company’s The Brick and Leon’s divisions are progressing as planned, and the installation of a new computer system designed to improve operational efficiencies in both divisions should be complete over the next 15 months.

“Even though we continue to see soft economic growth, we expect to see continued improvement in profits for the balance of the year,” Leon said.

For the nine months ended Sept. 30, Leon’s system-wide sales of C$1.7 billion were up 20.9% from a year earlier. Corporate store sales were C$1.43 billion, up 22.2%, while franchise store sales were up 14% to C$226.8 million.

Net income was C$45.6 million or 64 cents per common share, from C$42 million or 60 cents per common share — up 7% on a per share basis.

The figures include results from The Brick after March 28, 2013, the date the acquisition was finalized.

At the end of the quarter, Leon’s operated 301 stores in Canada under six banners: Leon’s, Appliance Canada, The Brick, The Brick Clearance Centre, The Brick Mattress Store and, United Furniture Warehouse.