Stanley Q1 Net Loss Widens
May 1, 2014,
STANLEYTOWN, 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."
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