Stanley Furniture posts $3 million loss as sales decline 5%
Larry Thomas -- Furniture Today, February 6, 2013
STANLEYTOWN, Va. — Stanley Furniture reported a net loss of $3.01 million in the fourth quarter as sales slid 5%.
The company blamed the sales decline on soft retail demand and a decline in sales of its Young America youth furniture brand. The company just completed a re-engineering and relaunch of the brand, and said there was considerable "disruption" at retail caused by dealers changing floor samples to reflect the revamped product.
Total sales for the quarter were $23.4 million, down from $24.6 million in the previous year's fourth quarter.
The quarterly loss, which equals 21 cents per share, reversed a profit of $1.2 million or 8 cents per share in the final quarter of 2011. The 2011 quarter included $2.86 million in funds the company received from antidumping duties.
"While total revenue declined for the quarter and year, our Stanley brand grew revenues in both periods contributing to the year's bottom line improvements," said Glenn Prillaman, president and CEO.
He said the re-engineering of the Young America line is now complete, and the company has completed initial production of all items in the revamped line.
"Understandably, customers have been challenged with changing floor samples after the re-engineering of the entire Young America product line during a time when retail traffic was slow," Prillaman said. "Our customers are delighted with the quality enhancements to our product and with our return to a more predictable production schedule. They have responded with orders in January."
For the 2012 calendar year, sales totaled $98.6 million, a decrease of 5.8% from $104.6 million in 2011.
Stanley recorded a profit of $30.4 million or $2.10 per share, in 2012. That figure included $39.3 million in antidumping duties received in the second quarter.
In 2011, the company recorded a net loss of $5.03 million or 35 cents per share. The year included $3.97 million in antidumping duties.
In 2013, Prillaman said the company is expecting slow but steady growth of the Stanley brand, and higher growth for Young America as the company regains market share lost over the past several years.
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