Stanley Furniture Posts Q4 Loss, Fiscal-Year Profit
February 6, 2013,
STANLEYTOWN, Va.-Rising expenses and a drop in sales combined to produce a fourth-quarter net loss of $3 million for Stanley Furniture, as opposed to net income of $1.2 million in the fourth quarter of last year.
For the fiscal year ending on Dec. 31, Stanley reported net income of $30.4 million, compared to a net loss of $5 million in the previous fiscal year. The company benefited from the payout of $39.5 million in the second quarter under the Continued Dumping and Subsidy Offset Act of 2000, for funds withheld under the antidumping duty order for wooden bedroom furniture imported from China.
Lagging retail demand for residential wood furniture and a disruption at retail from floor-sample changes associated with the last phase of the launch of Stanley's Young America line played crucial roles in depressing the company's sales by 5.1 percent in the quarter, to $23.4 million, according to Glen Prillaman, Stanley's president and CEO. For the fiscal year, net sales dropped 5.8 percent to $98.6 million.
In addition, selling, general and administrative expenses rose 3.5 percent in dollars and 161 basis points as a percentage of sales, to 19.6 percent. The falloff in sales pushed gross margin down by 419 basis points to 9.3 percent.
Looking ahead, Prillaman said Stanley would continue executing the business models for the growth of both the Stanley and Young America brand. "Both brands enter 2013 with healthy backlogs and excitement from new product introductions," he said. He added that, while the retail segment is difficult in most areas of the country, Stanley is "encouraged" by housing trends, which may point to a rebound in home furnishings as a whole.