Stanley Furniture Co Inc expects a sequentially wider loss in its third quarter, hurt by lower sales and disruption caused by shifting its Young America products from off-shore sourcing to its own domestic manufacturing facilities.
Our sales performance is indicative of consumer demand for residential wood furniture in our price segment. Demand for better goods continues to bump along at very depressed levels, Chief Executive Albert Prillaman said in a statement.
The furniture maker and retailer had posted a wider net loss of $3 million, or 29 cents per share, in the second quarter ended June 30. Revenue was down 28 percent at $42.3 million.
Three analysts were expecting the company to lose 18 cents a share in the third quarter, according to Reuters Estimates.
It will also record about $900,000 in depreciation due to a previously announced warehouse consolidation. In July, the company had said it would consolidate its Lexington, North Carolina warehouse operation to another company-owned warehouse space at Robbinsville by the year-end.
Stanley Furniture is expected to report third quarter results after the market close on Oct. 14.
Shares of the Stanleytown, Virginia-based company closed up 6 cents at $11.89 Tuesday on Nasdaq. (Reporting by Mihir Dalal in Bangalore; Editing by Pradeep Kurup)