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From Home Furnishing Business

Furniture Brands Q2 Sales off 4%

August 6, 2013  by in Financial Reports, Industry   

Net loss for the period ended June 29 was $40.8 million, or $5.15 per diluted share, which includes a $25.1 million after-tax charge from the aforementioned items. This compares to a net loss of $6.8 million, or $0.86 per diluted share, in the second quarter of 2012. These loss per share amounts are based on a share count that reflects the 7 for 1 reverse stock split that took place during the second quarter of 2013.

Second-quarter 2013 retail sales at the 49 Thomasville Furniture(http://www.thomasville.com) company-owned stores totaled $26.4 million, compared with sales of $25.6 million at 48 company-owned stores in the prior year period. Second quarter same-store sales at the 44 Thomasville stores that the company has owned for more than 15 months were up 4.5 percent compared with the second quarter of 2012.

The company also announced that in order to address its liquidity challenges and improve business performance it is implementing strategic initiatives to achieve cost reductions, pursuing asset sales and working with its lenders to potentially modify its credit facilities.

"Our financial performance in the second quarter was below our expectations," said Chairman and CEO Ralph Scozzafava . "Continued solid top- and bottom=line performance of our designer brands and improving sales and order trends at our Thomasville-owned retail stores were once again significantly over-shadowed by the challenges we are facing in stabilizing sales and profitability in our wholesale businesses.

"As a result of the challenges we continue to face, we are conducting a thorough strategic review of our business and have engaged outside advisors to assist us in this effort. The scope of this effort encompasses achieving further cost reductions, pursuing asset sales and modifying our credit facilities in order to improve our liquidity."