STANLEYTOWN, VA - Stanley Furniture (NGS:STLY) net sales fell by $1.2 million, to $23.4 million fourth quarter, and dropped $6 million for the year to $98.6 million.
The residential furniture manufacturer reported an operating loss of $2.4 million for the year, more than double the $1.1 million operating loss recorded in 2011.
That down news is accompanied by improvements that should make tell a different story in 2013, says Stanley Furniture president Glenn Prillaman. For example, Stanley completed the Young America product design - accompanied by an insourcing of production from abroad - as well as planned capital improvements.
Continued Dumping and Subsidy Offset Act proceeds of $39.5 million were received by Stanley in the second quarter of 2012, earned from antidumping duties for wooden bedroom furniture imported from China.
Capital expenditures totaled $3.8 million for in machinery and equipment to modernize and automate Stanley's Robbinsville furniture manufacturing facility. Stanley spent $2.7 million on new information systems in 2012 as it prepared its ehadquarters and showroom in High Point, NC.
When restructuring charges are accounted for, Stanley Furniture actually narrowed its operating loss for the year to $5.6 million in 2012 from a $6.4 million loss in 2011. Stanley also invested $6.5 million in new information systems as well as the modernization of the Robbinsville, NC facility that manufacturers its Young America product.
Prillaman said two factors hurt the fourth quarter: soft retail demand in most areas of the U.S. for residential wood furniture, and the disruption at retail caused by floor sample changes associated with the final chapter of the launch of our new Young America product line.
"After three years of constant change, our Young America brand is no longer in operational transition," Prillaman said, which represents "the last stage of our journey to position this domestically made product line for growth." Prillaman said floor sample changeovers confused customers and hurt sales.
Next quarter, Prillaman said Stanley will "complete the total transformation of our company with the consolidation of our corporate offices and new showroom in downtown High Point, NC, and the implementation of our customer-driven information systems upgrade."
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