Stanley Q1 Net Loss Widens

Stanley FurnitureSTANLEYTOWN, Va.-With sales dropping and costs on the rise, Stanley Furniture posted a net loss of $4.4 million in its fiscal first quarter, compared to a net loss of $2.1 million in last year's first quarter.

Net sales fell 16 percent to $21.9 million in the quarter, which ended on March 29. Selling, general and administrative expenses rose 11.6 percent in dollars and 611 basis points as a percentage of sales, to 24.8 percent. Gross margin fell 663 basis points to 6.4 percent.

During the quarter, Stanley announced that it would discontinue its Young America brand, which added $1.2 million in non-cash restructuring charges to its costs. Speaking of this move, Glenn Prillaman, Stanley's president and CEO, said, "We made great strides towards building a business model that would successfully compete in a quickly changing consumer marketplace, but concluded we could not ultimately achieve profitability within an acceptable amount of time."

Prillaman added that the Stanley brand achieved double-digit order growth in the quarter. "We expect further growth in the coming periods as new introductions gain traction," he said. "We will also benefit from the increased time, attention and resources focused on a single brand."

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

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 May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money