FBI's 3Q sales inch up 2%
By Larry Thomas -- Furniture Today, October 29, 2006
St. Louis — Helped by the strong performance of its Lane Furniture unit, Furniture Brands International said third-quarter sales edged up 2%. Net income, however, fell over 41%, largely due to various one-time charges.
Furniture Brands, which also owns Broyhill, Thomasville, Drexel Heritage, Henredon and Maitland-Smith, said third-quarter sales came to $568.9 million, compared with $557.9 million in last year's third quarter.
"As the third quarter progressed, we witnessed an increasingly challenging retail environment. Despite this, we delivered a positive year-over-year sales comparison, and our net earnings were basically flat on a pro-forma basis," said Chairman and CEO Mickey Holliman.
During a conference call with securities analysts, he said Lane's new quick-ship program and its expanded distribution in wholesale clubs and discount stores have contributed significantly to its top line.
"Business has been strong at Lane all year," Holliman said.
He also said Broyhill recorded a small sales increase in the third quarter, but is still down year-to-date. Broyhill's upholstery business is up more than 10% for the year, he added.
Holliman said he remains optimistic that Broyhill can reverse its sales slide, noting that the company is excited about the fifth anniversary promotion for its Attic Heirlooms collection, which generates nearly $100 million in sales annually.
He said sales were off year-to-date at Thomasville, Henredon and Drexel Heritage, but said Maitland-Smith "has had healthy sales and earnings increases."
Net income in the third quarter totaled $5.8 million, or 12 cents per share, compared with $9.9 million, or 19 cents per share, in last year's third quarter. Without the one-time charges, net income would have been $9.7 million.
For the nine months, sales rose 2.1% to $1.8 billion. Net income rose 19.6% to $53 million, or $1.08 per share.
Holliman told analysts he expects fourth-quarter sales will be about even with last year's fourth quarter. Net income will be 11 cents to 15 cents per share, he said.
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