Stanley Furniture Narrows Fourth-Quarter Loss
STANLEYTOWN, Va.-Stanley Furniture drastically reduced its fourth-quarter net loss to $1.7 million from the net loss of $8.3 million it posted for the final quarter of last year.
The company also benefited from a credit of $2.9 million from the Continued Dumping and Subsidy Offset Act. Factoring this in, Stanley reported a net income of $1.2 million. The company's net loss for the fiscal year totaled $5 million, down from its 2010 net loss of $43.8 million.
The performance for the quarter, which ended on Dec. 31, reflected the company's transition to a new model that more closely aligns operations with customer demand for differentiated product. Glenn Prillaman, president and CEO, said this transformation resulted in "lack of dependable service to our customers caused by each product line transitioning into new operational models, as well as the sluggish retail environment for case-goods furniture in the premium segment." Net sales for the quarter fell 11 percent to $24.6 million, and for the fiscal year dropped 24 percent to $104.6 million.
Stanley was able to post a positive gross margin for the fourth quarter of 13.5 percent, compared to negative gross margin of 21.8 percent for the 2010 fourth quarter. Selling, general and administrative expenses edged up 1.5 percent in dollars and rose 222 basis points as a percentage of sales to 18 percent.