Stanley Cuts Q3 Loss as In-Stock Position Improves
Continued delays in receiving products from its Asian suppliers hampered sales during much of the quarter. However, Stanley officials said product flow improved significantly as the quarter ended, and noted that sales were up about 8% in October – the first month of the fourth quarter – due to a vastly improved in-stock position.
"Prolonged periods of poor service caused by past sourcing issues are now behind us,” said Glenn Prillaman, president and CEO. “The stock availability positions that hindered demand for our products have been dramatically improved.”
He said more than 90% of the company’s product offerings – some of which have been delayed since early 2016 – are now in its Virginia warehouse or in transit from Asian suppliers.
“Over the past thirty days our customers are experiencing the improvements in stock availability as 88% of orders were fulfilled in an average of less than two days,” said Prillaman. “October was the company’s first month, since early last year, when stock availability served customers as expected, and with each positive experience at retail, we expect to regain the customer confidence that grows revenues."
For the first nine months of 2017, sales fell 4.4% to $33.2 million.
The nine-month net loss was $707,000 or 5 cents per share, down from $4.96 million or 35 cents per share in the first nine months of last year.
Separately, the company said it will not renew its licensing agreement with Coastal Living when it expires at the end of 2017. The agreement, which has been in place since 2009, resulted in sales of about $10 million in 2016 and $8.2 million in the first nine months of 2017.
"The success of this licensed product line has been remarkable, and we could not be more pleased with the relationship we have enjoyed with the people at Coastal Living," said Prillaman.
Under terms of the agreement, he said Stanley will continue to sell products under the Coastal Living brand name until October 2018. The designs remain the intellectual property of Stanley.