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From Home Furnishing Business

Stanley Sales Flat in Q3

October 15, 2013  by in Financial Reports, Industry   

Stanley, High Point, N.C., had a net loss for the period ended Sept. 28 of $2.5 million, compared with a loss of $1.9 million in third-quarter 2012.

"Our business showed important signs of improvement during the third quarter," said Glenn Prillaman, president and CEO. "After three consecutive years of strategic change necessary to position both our Stanley and Young America brands for growth, sales have stabilized, both year-over-year and sequentially, and our cash used during the quarter declined compared to prior quarters, as guidance suggested. Our balance sheet remains strong and our plan to become profitable does not hinge upon further capital spending."

The company's overseas operations to support its Stanley brand continue to perform well as gross margins rebounded from the second quarter of 2013. The company expects margins to continue improving as pricing action taken to offset inflation are fully realized and the impact of floor sample discounts are now in the past.

Domestic operations supporting the Young America brand continued to improve even as the company's Robbinsville factory operates on low unit volumes. The factory is operating on-schedule and orders delayed by the launch of its new operating system have been fulfilled.

"In the most recent quarter, our customers, as well as our associates and sales team, noticed the improvements in our sourcing, manufacturing and information systems efforts, all of which we believe position the company and its brands for growth opportunities," Prillaman said. "The ongoing refinement of our new operating systems continued throughout the quarter, and we believe these improvements are making it increasingly easier for our customers to do business with us. Our team remains focused on top-line growth and is ready for this week's Fall Furniture Market in High Point where we believe the industry's retailers and interior designers will again be excited to see our new product and programs."

Prillaman expects near-term growth, which should address margin issues and move the company past the negative comparisons associated with the structural changes of prior years.

"We are optimistic about our ability to grow both sequentially and year-over-year in the coming quarter with each of our two brands now positioned for differentiation in the marketplace," Prillaman said.

Click here for the complete Stanley third-quarter release.