Stanley Furniture Loss Rises in Q3
HIGH POINT, N.C.-Flat sales and a drop in gross margin led to a net loss of $2.5 million for Stanley Furniture in its fiscal third quarter, compared to a net loss of $1.9 million in its third quarter of last year.
Net sales in the quarter, which ended on Sept. 28, totaled $24 million, essentially the same as third-quarter sales of last year. Gross margin fell 236 basis points to 11.6 percent. Selling, general and administrative expenses increased 1.7 percent in dollars and 31 basis points as a percentage of sales, to 19.6 percent.
Glenn Prillaman, Stanley's president and CEO, said the company's business showed signs of improvement in the quarter.
"After three consecutive years of strategic change necessary to position both our Stanley and Young America brands for growth, sales have stabilized, both year over year and sequentially," Prillaman said. He added that Stanley's customers, associates and sales team have noticed improvements in the company's sourcing, manufacturing and information-systems efforts, "all of which we believe position the company and its brands for growth opportunities."
Prillaman added that the company is optimistic about the reception for Stanley's new product launches at High Point Market, which begins on Saturday. Although the economic environment remains challenging, "we believe superior product design and solid operational performance positions the company and its brands for success when and where the consumer decides to shop for better goods," he said.