STANLEYTOWN, Va. (AP) ¿ Stanley Furniture Co. Inc. said Tuesday that its third-quarter operating loss and sales will worsen from its second-quarter results.
The wood furniture maker reported a second-quarter pretax operating loss of $4.1 million, as sales tumbled 28 percent year-over-year to $42.3 million. Company officials were optimistic then that they saw signs that sales had hit bottom.
Chairman and CEO Albert Prillaman said Tuesday that the third-quarter sales decline indicated the level of demand for wood furniture in Stanley's price range.
"Demand for better goods continues to bump along at very depressed levels," he said.Stanley blamed the larger operating loss on lower sales, disruption caused by shifting production of one-third of its Young America products from foreign suppliers to its own domestic manufacturing plants, and about $900,000 of accelerated depreciation related to warehouse consolidation. President and Chief Operating Officer Glenn Prillaman said the company brought all Young America production in-house to "reposition" it as a trusted brand "for safety, broad selection, quick delivery and environmental commitment." He said the move would bear long-term benefits. The company will continue to use domestic and foreign production for adult furniture lines, he said. Stanley Furniture expects to release third-quarter results after markets close Oct. 14. Shares rose 6 cents to close at $11.89.