Furniture Brands' Loss Widens in Third Quarter
November 3, 2011,
ST. LOUIS-Declining sales and one-time charges for cost-reduction initiatives brought Furniture Brands International to a net loss of $24.5 million in its third quarter, compared to a net loss of $2.1 million in the third quarter of last year.
Net sales for the quarter, which ended on Sept. 30, fell 5.1 percent to $258 million. Gross margin was off 248 basis points to 22.3 percent. Selling, general and administrative expenses rose 6 percent on a dollar basis and 306 basis points as a percentage of sales, to 29.1 percent. Those cost-reduction actions resulted in a charge of $16.5 million against earnings.