Furniture Brands Slims Loss in 3Q
ST. LOUIS-Furniture Brands International posted a net loss of $18 million in the third quarter ending on Sept. 29, down from the $24.5 million net loss the company reported in last year's third quarter.
Cost discipline helped narrow the company's loss in the quarter. Selling, general and administrative expenses were down 6.6 percent in dollars and 165 basis points as a percentage of sales, to 27.4 percent.
Net sales slipped 0.9 percent to $255.6 million. Included in the top line was a 6.7 percent decrease in sales at Furniture Brands' Thomasville company-owned stores. Sales at stores that the company has owned for more than 15 months were down 4 percent.
Ralph Scozzafava, Furniture Brands' chairman and CEO, said the company had an "improving shipment trend throughout the quarter." Order activity also brought increases on both a sequential and a year-over-year basis, which has enable Furniture Brands to carry an increased order backlog into the fourth quarter, Scozzafava said.
"Our new product introductions are resonating with customer and helping us gain incremental distribution as well as replace older products at retail," he added.