Furniture Brands International Back in Black

May 5, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 6, 2010

First-quarter 2010 sales at Furniture Brands International (FBN), St. Louis, fell 9.7 percent compared with the same period last year to $322 million, the company reported Wednesday.

Sales rose 12.9 percent from Furniture Brands International's 2009 fourth quarter, though, and FBI netted $3.5 million during the period ended March 31, compared with a first-quarter 2009 loss of $4.2 million.

"Furniture Brands' improved financial performance reflects the strategic actions taken to strengthen the balance sheet, build our brand power, win with customers, and deliver operational excellence," said Chairman and Chief Executive Officer Ralph P. Scozzafava. "This transformation of Furniture Brands over the past two years has positioned the company to compete better in a weak retail environment, and today's financial results are clear evidence that our hard work is gaining traction. The sequential increase in top-line sales reflects the momentum that our new product offerings are creating in the marketplace. We are consistently gaining floor placements with our retail partners, and consumers are responding favorably to our tested products."

First-quarter 2010 retail sales at the 65 company-owned stores totaled $35.6 million with a gross margin of 42.3 percent, compared with sales of $29.8 million and gross margin of 39.9 percent at the 62 stores the company owned during the first quarter of 2009. First-quarter 2010 same-store sales at the 40 Thomasville Home Furnishings stores that the company has owned for more than 15 months showed an increase of 16 percent from the first quarter of 2009.

At March 31, Furniture Brand's net debt was $17 million compared with net debt of $97 million at the end of 2009's first quarter. On April 12, the company received $57 million of an anticipated federal tax refund, resulting in a net cash position of $37 million.