Stanley Furniture reports loss but sees improvement
- October 20, 2011
Henry County-based Stanley Furniture Co. Inc. reported a loss for the third quarter, but the company’s gross margin continued to improve.
Net loss for the third quarter was $1.7 million, down from $2 million in the second quarter (adjusted for an income and restructuring credit), on $26.1 million in net sales.
“We are clearly operating in a difficult retail environment,” Glenn Prillaman, the company’s president and chief executive officer, said in a statement. “But our efforts to continue improving operations independent of sales are encouraging. We enter the fourth quarter with our strongest product offering and in the best service position since our restructuring plan began at the end of 2010.”
Gross margin increased to $3.8 million (14.7 percent of net sales) in the third quarter from $3.4 million (12.3 percent of net sales) in the second quarter excluding the restructuring credit. The increase marked the third consecutive quarter that gross margin has risn.
“We made significant progress on our path to become a profitable and efficient domestic manufacturer during the quarter,” Micah Goldstein, chief operating and financial officer, said in a statement. “The gross margin improvement in the third quarter came primarily from improvements related to the modernization efforts under way in our factory in Robbinsville, N.C.”
Cash at quarter-end was $19.5 million including restricted cash. Working capital, excluding cash and restricted cash, increased to $24.3 million from $22.6 million at the end of the second quarter, mostly driven by a $2.8 million increase in finished goods inventory..