Furniture Brands Posts Profit

August 1, 2007  by in UnCategorized   

By Home Furnishings Business in on August 2007 A “sluggish economy” in the home sector continued to hamper Furniture Brands International in its second quarter as sales declined 11 percent to $535.2 million and net earnings declined 65 percent to $5.8 million.

The company’s earnings of 9 cents per share—after the impact of restructuring and special charges—exceeded the expectations of some analysts, according to published reports. Furniture Brands shares rose in the wake of the earnings announcement Wednesday.

Chairman and CEO Mickey Holliman, who announced plans last month to retire in May, said the sales decrease is a reflection of a lackluster retail environment.

“We are meeting this situation with fresh product offerings as well as promotions to keep our family of brands in the consumer’s eye,” he said.

He also said the company’s management has concluded a strategic review of the furniture industry and “how Furniture Brands can best deliver value to its shareholders.” Touching on every aspect of the company’s business—from raw materials procurement to the customer experience—the report will be presented to the company’s board this week.