Furniture Brands International's CEO Discusses Q2 2012 Results - Earnings Call Transcript
Please refer to our SEC filings including our Form 10-Qs and Form 10-Ks for a discussion of the major risks and uncertainties that may affect our business. The forward-looking statements made today are as of the date of this call and we do not undertake any obligation to update our forward-looking statements. If you do not have a copy of today’s press release, you may obtain one along with copies of prior press releases and past SEC filings by link through to the Investor Relations page of our website furniturebrands.com.
I now hand it over to Vance to discuss our financial results.
Thanks Rick and good morning everyone. As reported in this morning’s press release, total sales were 265.5 million for the second quarter, a decrease of 10.4% from the same period last year. Gross profit for the second quarter of 2012 was 64 million and gross margin was 24.1% as compared to 73.4 million in gross profit and 24.8% gross margin in the same quarter of last year.The year-over-year change in gross margin was primarily due to additional clearance of older inventory and product that has been replaced, decreased retail margin and lower plat utilization, partially offset by lower cost resulting from prior cost reduction activity. SG&A expenses totaled 69.8 million for the second quarter compared to 79.3 million in the second quarter of 2011. The decrease in second quarter SG&A was primarily due to lower expenses resulting from prior cost reduction activities. As our cost reduction efforts have taken route, we expect SG&A for the remaining quarters of 2012 to track towards the lower end or below our previously communicated 73 to 77 million guidance range. Our operating loss of 5.8 million was essentially flat to year ago period as the lower sales volumes were offset by our cost savings efforts. Net loss for the quarter was 6.8 million or $0.12 on a per share basis as compared to a net loss of 6.6 million or $0.12 per share in the second quarter of 2011.
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