STANLEYTOWN, Va.–Stanley Furniture posted a net loss of slightly more than $3 million in the second quarter, compared to a net loss of $68,000 in the second quarter of last year.
Net sales for the manufacturer dropped 28.4 percent in the quarter, to $42.3 million. Noting that its losses have been mounting throughout the first half of this year, Stanley Furniture said declining sales, reduced production levels, plant inefficiencies, increased selling discounts and rising factory overhead variances have all had an impact on these results.
In its statement regarding the second-quarter results, Stanley Furniture also said it plans to consolidate its warehouse operation in Lexington, N.C., into other warehouse space, primarily at the Robbinsville, N.C., facility. This transition is expected to be completed by the end of this year, and should improve the company’s operating income by $1.3 million starting in 2010. For the next two quarters, Stanley Furniture will post accelerated depreciation totaling about $1.7 million.