American's sales decline 9.1%
Furniture Today Staff -- Furniture Today, August 13, 2012
ECRU, Miss. - Promotional upholstery producer American Furniture recorded a 9.1% drop in sales in the quarter ended June 30 and had an operating loss of $740,000, according to a regulatory filing by parent company Compass Diversified Holdings.
In a quarterly financial report filed with the Securities and Exchange Commission, Compass said American's sales for the quarter totaled $21.3 million, down from $23.5 million in the same quarter in 2011.
The operating loss was less than half the $1.6 million loss recorded in last year's second quarter, Compass reported.
Compass said recliner sales had the biggest decline, but sales of stationary upholstery and motion upholstery also were slightly below last year's second quarter.
"The decrease in net sales in all categories is the result of a continuing soft retail environment and ... increased competition in pricing in the promotional furniture category," Compass said in the SEC filing.
For the six months ended June 30, American's sales totaled $51.6 million, down 13.1% from $59.4 million in the first six months of 2011.
The six-month operating loss totaled $451,000, well below the $9.6 million loss in the first half of last year. The 2011 figure, however, includes impairment charges of $7.7.
Compass said American's sales in the second half of this year are expected to be lower than in the second half of last year, but didn't make a specific sales projection.
- Nov 15, 2012