Stanley Furniture Narrows Net Loss in Third Quarter
STANLEYTOWN, Va.--Stanley Furniture reported a net loss for its third quarter of $4.9 million, compared to a net loss of $5.1 million for the third quarter of 2009.
The company was able to reduce its loss through expense controls. Selling, general and administrative expenses were slimmed by 16.3 percent, while cost of sales were down 9 percent. Glenn Prillaman, Stanley's president and chief executive officer, said the decline in expenses resulted from the company's efforts to restructure its business--which included the transition of its Young America product line to all-domestic production, improved operating efficiencies at the company's plant in Robbinsville, N.C., and transition of the Stanley adult product line from a partially domestic to a completely global-sourced model.
Net sales fell 9.3 percent in the quarter, totaling $34.9 million. Gross margin fell 88 basis points to a negative 2 percent.
Prillaman added that the company is on track to cease manufacturing at its factory here in December, which may reduce Stanley's fourth-quarter sales and increase its operating loss due to operating inefficiencies stemming from the winding down of production.