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From Home Furnishing Business

Stanley Loses $2.3 Million in Q3

October 14, 2014  by in Casegoods, Financial Reports, Industry, Product   

High Point-based Stanley lost $2.3 million for the quarter ended Sept. 27, a slight improvement from the $2.5 million it lost in third-quarter 2013.

Through the first nine months of 2014, the company had sales of $44.6 million, down 1.5 percent from the prior year; and a net loss of $25.7 million, compared with a loss of $8.1 million through 2013's third quarter.

That's according to Stanley's most recent 10-Q report.

Third quarter 2014 is Stanley's first quarter of reporting results from operating only its Stanley brand following its decision to discontinue the Young America youth bedroom product line; and the final quarter of corporate overhead costs required to support both the Stanley and Young America brands.

The company reported its third consecutive quarter of sequentially improved results from operating only its Stanley brand.

“After sequential improvements in expense structure, adjustments of inventories to market value and successful management of our effort to discontinue roughly 40 percent of our company’s revenues in a customer-friendly manner, we expect to operate a cash positive business and exit the year profitably,” said President and Chief Executive Officer Glenn Prillaman in a press release on third-quarter results. “Order rates continue to be negatively affected by the lingering effects of retail disruption caused by discontinuing operations of our Young America brand. However, well-styled product that is valued in the marketplace supported by the quality and service customers in our industry have trusted Stanley with for years sustains our company’s opportunities for growth.”

While traditionally a weaker period for orders, the Stanley brand experienced its highest third quarter order volume in four years.

“The strength of our Stanley brand and its position in the marketplace combined with the cohesive efforts of our management team, sales force and loyal customers have contributed to our company completing its operational transition,” Prillaman said. “We are pleased to see progress in our business with the sequential improvement in operating results and the highest third quarter order volume for our Stanley brand since 2010.”

Looking ahead, Prillaman said the demand for upscale wood residential furniture in the industry’s traditional channels of distribution remains relatively weak.

"The need for strong brands who market effectively and partner with retailers to attract and retain today’s consumer is greater than ever,” he said. “As an increasing number of the more efficient, entrepreneurial-minded wholesale customers in the marketplace regain confidence in our company and shop our product offerings, we expect slow but steady growth driving operating profits and generating cash.”