Stanley 3Q Sales off 34.2%

October 19, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on October 20, 2011

Stanley Furniture Co. (NASDAQ-NGS: STLY) reported third-quarter 2011 net sales of $26.1 million, a 34.2 percent decrease from the same period last year.

Stanley lost $1.7 million in the three months ended Oct. 1, an improvement from a $4.9 million loss in third-quarter 2010.

Stanley's third-quarter net loss also was an improvement from a $2 million loss in second-quarter 2011.

"We are clearly operating in a difficult retail environment," said Glenn Prillaman, president and CEO, "but our efforts to continue improving operations independent of sales are encouraging. We enter the fourth quarter with our strongest product offering and in the best service position since our restructuring plan began at the end of 2010. This should result in continued backlog reduction during the remainder of 2011, bolstering confidence with our customers. Historically, when we have combined the best product with superior quality and service, we have gained market share and generated positive cash flow. Predicting future growth, however, in this economy is very difficult."

Gross margin increased to $3.8 million (14.7 percent of net sales) in the third quarter from $3.4 million (12.3 percent of net sales) in the second quarter excluding restructuring credit.

"The overseas sourcing efforts associated with our Stanley brand are paying dividends, and now we accelerate our investments in the domestic operations which support our Young America brand's differentiation in the marketplace," Prillamn said. "This will take time, but we will emerge a stronger company with improved product offerings addressing changing distribution channels."