Dubuque-based Flexsteel Industries Inc. reported a slight decrease in net sales for the fiscal quarter ended Dec. 31 as a result of softening residential and vehicle markets.

Net sales were $105.7 million compared with $106.3 million in the same period a year earlier. Net income was $1.4 million, or 21 cents per share, compared with $500,000, or 7 cents per share, the year prior.

Residential sales fell 3.7 percent to $67 million, compared with $69.6 million in the prior year, while recreational vehicle net sales dropped 6.2 percent to $14.9 million compared with $15.9 million. Meanwhile, commercial net sales increased 14.1 percent to $23.8 million, compared with $20.8 million in the prior year quarter.

The company expects these business conditions to continue through the remainder of the 2007 fiscal year.