American Furniture posts profit as sales inch up 1.7%
Larry Thomas -- Furniture Today, May 8, 2013
ECRU, Miss. — Upholstery producer American Furniture Mfg. reported a first-quarter sales increase of 1.7% as the company reversed a net loss from last year's first quarter.
The financial report, included in a Securities and Exchange Commission filing by parent company Compass Diversified Holdings, also showed that American recorded an operating profit of $573,000, nearly double the operating profit of $273,000 in the same quarter last year.
Net income totaled $94,000, which reversed a net loss of $177,000 in the first quarter of 2012.
Net sales for the quarter were $30.82 million, up from $30.29 million in the comparable quarter. Compass said the sales increase was due largely to the introduction of a power motion upholstery line. Stationary upholstery sales were flat.
Compass hired a new president and senior management team at American last fall, and American executives said a revamped product line received overwhelmingly positive reviews at last month's High Point Market.
The company will begin shipping the new products in late summer and early fall.
Furniture Today's Ray Allegrezza Speaks with Stephen Bogart about Fine Furniture's New Bogart Line