Stanley Records Q2 Profit Despite 3.6% Sales Drop

July 26, 2017  by Larry Thomas in Economic News, Industry   

The company said sales were hurt by continuing problems receiving orders from its Asian factories, but the company wound up with a small profit due to reduced discounting and lower costs.

Sales for the quarter ended July 1 totaled $11.6 million, down from $12.1 million in last year’s second quarter.

The quarterly profit, which was break-even on a per-share basis, compares with a loss of $1.39 million or 10 cents per share in the same quarter last year.

Gross margin improved to 23.5% from 17.1% in last year’s second quarter.

“The business is now essentially break-even despite missing desired sales growth,” said Glenn Prillaman, president and CEO. “We remain debt free.  We have sufficient cash to serve customers through inventory investments, which should result in continued sequential revenue growth.” 

For the six months ended July 1, sales totaled $22.8 million, down 3.9% from $23.7 million in the first half of 2016.

The six-month net loss totaled $402,000 or 3 cents per share. That compares with a loss of $2.88 million or 20 cents per share in the same period last year.

Prillaman said a large amount of product was shipped late in the second quarter from its Asian vendors, indicating the company’s sourcing problems are being alleviated.

“Newer, more marketable product introductions developed throughout the past two years, but not previously seen by the retail consumer began to sell late in the quarter,” Prillaman said. “We and our wholesale customers are pleased with initial results, and we expect to slowly grow revenues and demonstrate slight profitability over the remainder of 2017 as inventory availability improves.”