HIGH POINT, N.C.-Reflecting the troubled condition of the casegoods industry, Stanley Furniture Co. turned in a fourth-quarter loss of $4.6 million, compared to a net loss of $3 million in the fourth quarter of last year.
For the fiscal year ending on Dec. 31, Stanley posted a net loss of $12.6 million, compared to net income from the prior fiscal year of $30.4 million. Net sales in the quarter were down 2.7 percent to $22.7 million, and for the year totaled $96.9 million, off 1.6 percent.
Glenn Prillaman, Stanley’s president and CEO, cited the laggard condition of the casegoods market as a factor, leading to a reduction in traffic at the company’s customers. “Retail activity in the last three months of the year proved to be weaker than anticipated,” Prillaman said. “However, we would have shown year-over-year sales growth in the quarter if not for a delay in shipping our newest major introduction in our Stanley product line, now being delivered to customers.”
Gross margin in the quarter fell 304 basis points to 6.3 percent. Selling, general and administrative expenses rose 15.5 percent in dollars and 377 basis points as a percentage of sales, to 23.3 percent.
Looking ahead, Prillaman said the capital expenditures toward restructuring Stanley—including investments in its office and showroom consolidation, the implementation of new operating systems and capital spending at the company’s plant in Robbinsville, N.C.—“are behind us. As order rates begin to grow, we are positioned to generate sales results quicker than we have in recent years.”