Stanley Furniture posts $11.5M loss as sales decline 10.5%
One-time charges, production changes affect results
Larry Thomas -- Furniture Today, August 12, 2010
STANLEYTOWN, Va. — Case goods resource Stanley Furniture reported a wider second-quarter loss as sales dropped 10.5%.
The loss, which included one-time charges of $3.3 million, came to $11.5 million or $1.11 per share. In last year's second quarter, the loss was $3 million or 29 cents per share.
Sales for the most recent quarter totaled $37.9 million, down from $42.3 million in the same quarter last year.
In addition to the one-time charges, the higher net loss was due to manufacturing inefficiencies and the increased costs of shifting about one-third of its Young America line from overseas to domestic production, said Glenn Prillaman, president and CEO.
"Business conditions in the second quarter remained sluggish with a downturn in sales for June showing that today's consumer continues to take a cautious approach toward the purchase of wood furniture in our price segment," Prillaman said.
He said the transition of the Young America line is largely complete, but the company has just begun shifting its adult furniture line from domestic to overseas production. That transition should be complete by the end of the year.
"The overseas factories to which we are moving product are already making a significant portion of this product line, and while there is heavy lifting yet to be done, we anticipate a smooth transition as we become increasingly important to these existing overseas suppliers," said Prillaman.
For the six months ended July 3, sales fell 9.3% to $74.4 million.
The six- month net loss came to $30.5 million or $2.95 per share. For the first six months of last year, the loss totaled $5.4 million or 52 cents per share.
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Stanley Furniture reports $19.1 million loss in 1Q
May 13, 2010
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