Stanley lowers 2nd quarter outlook
By Jeff Linville -- Furniture Today, June 17, 2002
STANLEYTOWN, Va. — Stanley Furniture has lowered its outlook for the second quarter, citing reduced demand around Memorial Day, but said sales are still up from last year.
In a conference call last week, Albert Prillaman, chairman and chief executive officer, said the case goods maker had experienced double-digit sales growth through the April High Point market and estimated then that sales for the quarter ending June 29 would be up 10% to 14% over last year. But sales dropped off, and the company now estimates a gain of 3% to 5%, "our first positive quarter in a while," Prillaman said.
Earnings per share for the second quarter are projected at 44 to 47 cents before restructuring and related charges, down from the April forecast of 52 to 57 cents but better than second-quarter 2001's 38 cents.
He said retail weakened recently for wood furniture in Stanley's upper-middle price niche. For Memorial Day and the last week of May, sales were down in double digits from last year, he said.
"The wood business in our category is difficult across the board," Prillaman said. He said retailers are reporting better sales numbers on upholstery than wood.
In written orders, he said, this was the best April market ever for Stanley. Orders during market and in the following six weeks exceeded expectations by 20%.
"This bodes very well for the second half," he said. For the full year, he believes sales will be 5% to 8% above 2001.
The company will take the final restructuring charges stemming from the closing of the West End, N.C., plant, in the second quarter. Costs are less than anticipated, Prillaman said, and come to less than $1 million. With the facility open, Stanley's domestic plants were running at about 75% capacity last year, he said, and the closing has helped optimize operations.
