Stanley Loses in Q4, Gains for YearFebruary 6, 2013
Stanley, Stanleytown, Va., lost $3 million in 2012's last three months, compared with net income of $1.2 million in fourth-quarter 2011. For the full year of 2012, Stanley recorded net sales of $98.6 million, down 5.7 percent from 2011; the company had net income of $31 million, which included $39.3 million in proceeds from antidumping duties on Chinese bedroom furniture.
Stanley attributed its fourth-quarter 2012 operating $2.4 million primarily to the decline in Young America sales and spending in preparation for the Winter Las Vegas Furniture Market, where the company opened a new showroom in the Las Vegas Design Center.
“As expected, the combination of two factors hurt sales in the fourth quarter: soft retail demand in most areas of the country for residential wood furniture in our segment, 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,” said Glenn Prillaman, president and CEO. “While total revenue declined for the quarter and year, our Stanley brand grew revenues in both periods contributing to the year’s bottom line improvements.
“In addition, after three years of constant change, our Young America brand is no longer in operational transition. Representing the last stage of our journey to position this domestically made product line for growth, we completed initial production of all items, including two new designs that were introduced in October 2012 at the High Point Market. Understandably, customers have been challenged with changing floor samples after the re-engineering of the entire Young America product line during a time when retail traffic was slow. Our customers are delighted with the quality enhancements to our product and with our return to a more predictable production schedule. They have responded with orders in January.”
Prillaman added that Stanley's strategic transportation nears completion with the consolidation of its corporate offices and new showroom in downtown High Point; and the implementation of our customer-driven information systems upgrade, which represents a 2012 investment of $6.5 million.