Furniture Brands Net Loss Rises in Second Quarter

ST. LOUIS-Declining sales and margins produced additional red ink to Furniture Brands International's second quarter.

The company's net loss in the quarter, which ended on June 30, was $6.8 million, compared to a net loss of $6.6 million in the second quarter of 2011. Net sales fell 10.4 percent to $265.5 million, including a fall of 7.4 percent in same-store sales at the 44 Thomasville stores Furniture Brands has owned for more than 15 months. Gross margin was off 68 percentage points to 24.1 percent--the result of additional clearance of older inventory and product that has been replaced, a drop in retail margin and reduced plant usage.

Selling, general and administrative expenses were cut by 11.9 percent in dollars and 46 basis points as a percentage of sales in the quarter, to 26.3 percent. Ralph Scozzafava, Furniture Brands' chairman and CEO, said the company is progressing with its ongoing efforts to slim down costs and increase efficiencies.

The company is also "focused on driving sales through new product offerings that are updated, relevant and offer value to the customer," Scozzafava said. "We are seeking broader acceptance of this newer product, which has contributed to our increased order backlog at the end of the quarter."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.