STANLEYTOWN, Va.-Stanley Furniture has reported a $2.1 million net loss in its fiscal first quarter, compared to a $1.6 million loss from its first quarter of last year.
Declining sales and margin, plus a hike in expenses, combined to redden the furniture manufacturer’s bottom line. Net sales in the quarter, which ended on March 30, fell 2.7 percent to $26.1 million.
That sales shortfall pushed gross margin down 44 basis points to 13 percent. Selling, general and administrative expenses rose 6 percent in dollars and 153 basis points as a percentage of sales, to 18.6 percent.
Glenn Prillaman, Stanley’s president and CEO, said in spite of the numbers, the company made progress in the first quarter. Prillaman said its Young America brand posted its first sequential increases in orders and shipments since the fourth quarter of 2010, and noted that shipments of the Stanley Furniture brand outpaced the previous three quarters, although they were down slightly from the first quarter of 2012.
“We have multiple growth initiatives under way, but we will not be able to continue growing unless our incoming order rate improves,” Prillaman said.