From Home Furnishing Business
Stanley Furniture Sales Off in Q1
Net sales were $11.7 million, down 20.4 percent from last year due to production delays of new product. Gross profit margin improved to 21.7 percent from 20.3 percent.
Sales for the quarter continued to be negatively impacted by delays in shipping 2015 product introductions, as the construction and initial production of its new factory in Vietnam dedicated solely to the company’s new product took longer than anticipated.
“The completion of the plant’s construction phase came so close to the Tet holiday, the Vietnamese New Year, that initial staffing of the plant was difficult,” said Glenn Prillaman, president and CEO of Stanley Furniture. “With construction complete and the plant fully staffed, the focus is on training and managerial development.”
Stanley Furniture indicated that completion of most of its delayed customer orders is expected to be achieved by the end of its second quarter.
“As the second half of this year begins, more marketable product introduced in 2015 begins hitting retail floors,” Prillaman said. “This new product represents a significant change in our value at retail. Prices are 25 to 40 percent lower as certain overhead and sourcing costs have been eliminated, yet our product quality and styling remains representative of designs that provide our customers a gateway to the luxury segment of the wood residential market.”
Prillaman added that as part of the wave of new, more marketable product hitting retail, Stanley Furniture and its retailers are enthusiastic about the initial signs at retail of Stanley Furniture’s new nursery and youth brand, Stone & Leigh.
“Retail prices of this brand are 25 percent below where the company’s former brand, Young America, was positioned in the market,” Prillaman said. “Just as importantly, we are launching an unprecedented effort to market directly to the Millennial consumer on behalf of our wholesale customer, and they recognize our ability to drive that elusive consumer into their store.”